Question

Write a paper of 300-600 words presenting your analysis Topic L: Discuss an example of how a firm may deal with risk and uncertainty.

Answer 1

Uncertainty and risk is part of any business and in the today's time the risks's are getting bigger and bigger. We live a era of social media and something can be made and broken just as easily. Every business opportunity comes with huge amounts of risk as the times and the technology is changing so fast, everyone wants the next best thing that comes to the market. So a firm must be prepared for all the risks and uncertainties that his/her firm may face. Taking an example, a person comes up with a new product but is unsure if it will be liked by the market then to avoid incurring huge losses that firm should do a market survey or launch the product in a small area only to see the reactions of the consumers to that product. The firm should also be prepared with different alternatives, a back up plan, in case the original product fails to deliver results in the market. He should be prepared to respond to the market changes quickly in order to stay in the game and must be aware of the different outcomes that could possibly take place. And in the end the person should have full confidence in the product and should give it some and take decisions with patience and not abruptly.