State the term- dealing with general risk, Financial Management

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State the term- Dealing with general risk

Part  of  the  strategic  decision  making  process  is  to  analyse  all  risk  factors  involved  with pursuing a specific course of action.

Risk is when actual outcome differs to the expected outcome. Business will make a decision on  which  the  outcome  isn't  known  with  certainty,  for  illustration  investing  in  a  new  project, entering a new market etc.

In  order  to  grow  some  risk  has  to  be  taken  though the  key  is  management  of  the  risk  and company's attitude towards risk (i.e. Riskseekers or riskaverse).

 


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