Risk management is a multifaceted discipline that involves recognizing, evaluating, and ordering risks according to priority and type. Most risks are unique to a business or service. For example, fluctuating loan rates might cause a tenant to have difficulty in meeting high payment requirements. Simply put, individuals involved in any industry should focus on identifying the risks inherent in their line of work.
Four main methods exist in dealing with risk. First, you can accept the consequences of risk and budget accordingly. Second, the investor can attempt to minimize damage by installing multiple layers of backup software to protect data. The third method sees risk transferred to another party, such as by insuring against certain types of accidents. Finally, the investor might shut down an area deemed too risky for operation without shutting down the entire business.
About the Author
David Mendivil González is a real estate industry expert specializing in risk management. The Director of Grupo Desarrollador del Noroeste, S.A. de C.V., Mr. Mendivil González has more than 15 years of experience.