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In the financial planning system, what is the next step after evaluation of risk?
A. defining a risk mitigation plan
B. determining types of financial risks
C. determining future risks
D. determining your current financial goals

Respuesta :

Defining a Risk mitigation plan

Explanation:

A risk mitigation plan,

  • helps to "eliminate" the impact of risk events
  • lessen the effects of threats
  • prepare the business to face potential risks
  • prioritize the impact

There are 4 types of mitigation plan,

  • Risk avoidance: Risk should be avoided in general which may protect the business from heavy loss.
  • Risk acceptance: Sometimes tolerating risk costs less compared to mitigating the risk.
  • Transference: Here the risks will be shared by taking insurance policy, forming partnerships, etc.
  • Limitation: This is the commonly used strategy.

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