The methods of reducing risks.
There are various ways in which risks can be reduced. The following are some of the major risks reduction measures:
I. Risks can be reduced by economic research and forecasting because it makes aware of the management regarding the shape of future business environment.
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II. Risks can be reduced by conducting consumer research and prediction-because it reduces the risks of over production or the production of wrong products.
III. Risks can also be reduced by product research and quality control measures. It facilitate consumer in getting quality products.
IV. Risks can be reduced by careful screening of customers. This facilitate in the reduction of bad debt and so that risks of credit collection is reduced.
V. Risks can be reduced by proper training and development programme because a well organized training and development programme reduces number of employees.