Explain the Risk management strategies
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Retain the risk
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If risk is small and won't affect company's profits, company does very little and lives with it.
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Avoid risk
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Taking action to ensure all risk is avoided, but this would cost money and may inhibit growth which implies Invoicing overseas clients in sterling only.
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Reduce risk
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Ensuring the risk is minimised by training staff and having effective management control systems.
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Transfer risk
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Insurance and hedging, passes the risk to third party, buy costs money.
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