Question

In: Finance

what is the role of risk measurement in managing revenue risk

what is the role of risk measurement in managing revenue risk

Solutions

Expert Solution

Risk meausrement is very important for managing revenue risk. Once we can measure the risk then we can decide how we are going to deal with it so that there is very minimal impact on reveunue. There are many methods to deal with reveunue risk after measuring the risk which are as follows:

1. Risk Acceptance: here risk can't be eliminated and accepted by the organisation in that case reveunue is going to be impacted by risk.

2. Risk reduction: one very important steps to deal with revunue risk where like increase sales pipeline or tightening our lead score requirement.

3. Risk elimination : it is one of harshest measure to reduce reveunue risk like no delivery of goods till paymnet is made etc.,

4. Risk transfer: transfer the revenue risk to a insurance company by transfering the risk.

5. Risk share: Revuenue risk is share by the others who are in the whole downstream chain like suppliers and sellers share the revenue risk with company.


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