A company decided not to pursue a business opportunity In a foreign market due to political Instability and currency fluctuations. Which risk control strategy did this business utilize?
Prevention is a risk control strategy that involves avoiding or eliminating the sources of risk. By deciding not to pursue a business opportunity in a foreign market due to political instability and currency fluctuations, the company prevented the potential losses or disruptions that could arise from these factors. Mitigation is a risk control strategy that involves reducing the impact or likelihood of risk. Recovery is a risk control strategy that involves restoring normal operations after a risk event occurs. Wait and see is a risk control strategy that involves monitoring the risk situation and taking action only when necessary. References:
CPIM Part 2 Learning System, Module 4: Execution and Control of Operations, Section 4.3: Risk Management
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