{"id":21935,"date":"2025-08-02T14:29:45","date_gmt":"2025-08-02T14:29:45","guid":{"rendered":"https:\/\/certifeka-edu.com\/programs\/finance-for-strategic-managers-accounting-professional-certificate\/lessons\/lesson-2-4-alternative-strategies\/"},"modified":"2025-08-08T14:12:05","modified_gmt":"2025-08-08T14:12:05","slug":"lesson-2-4-alternative-strategies","status":"publish","type":"lesson","link":"https:\/\/certifeka-edu.com\/ar\/programs\/finance-for-strategic-managers-accounting-professional-certificate\/lessons\/lesson-2-4-alternative-strategies\/","title":{"rendered":"Lesson 2: 4 alternative strategies"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"21935\" class=\"elementor elementor-21935\" wpc-filter-elementor-widget=\"1\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5a8c879 e-con-full e-flex e-con e-parent\" data-id=\"5a8c879\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-e753640 e-con-full e-flex e-con e-child\" data-id=\"e753640\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7d02938 exad-sticky-section-no exad-glass-effect-no elementor-widget elementor-widget-image\" data-id=\"7d02938\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"96\" height=\"114\" src=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/04\/logos-png-01-296x57-1.png\" class=\"attachment-large size-large wp-image-16861\" alt=\"\" srcset=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/04\/logos-png-01-296x57-1.png 96w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/04\/logos-png-01-296x57-1-10x12.png 10w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/04\/logos-png-01-296x57-1-42x50.png 42w\" sizes=\"(max-width: 96px) 100vw, 96px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-7ee93fc e-con-full e-flex e-con e-child\" data-id=\"7ee93fc\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a4ae894 exad-sticky-section-no exad-glass-effect-no elementor-widget elementor-widget-heading\" data-id=\"a4ae894\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Lesson 2 :Understanding Business Risk\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-33cf8ee e-flex e-con-boxed e-con e-parent\" data-id=\"33cf8ee\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-fdaa125 exad-sticky-section-no exad-glass-effect-no elementor-widget elementor-widget-heading\" data-id=\"fdaa125\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">4 alternative strategies\n\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d9144f4 exad-sticky-section-no exad-glass-effect-no elementor-widget elementor-widget-text-editor\" data-id=\"d9144f4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h5><span style=\"color: #000080;\">4 alternative strategies may be considered for dealing with threats, as follows:<\/span><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-8cac97f e-flex e-con-boxed e-con e-parent\" data-id=\"8cac97f\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-bca57f7 exad-sticky-section-no exad-glass-effect-no elementor-widget elementor-widget-n-accordion\" data-id=\"bca57f7\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;default_state&quot;:&quot;expanded&quot;,&quot;max_items_expended&quot;:&quot;one&quot;,&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:400,&quot;sizes&quot;:[]}}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1970\" class=\"e-n-accordion-item\" open>\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"true\" aria-controls=\"e-n-accordion-item-1970\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\">  Avoid  <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1970\" class=\"elementor-element elementor-element-79fea09 e-con-full e-flex e-con e-child\" data-id=\"79fea09\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1970\" class=\"elementor-element elementor-element-4f0f811 e-con-full e-flex e-con e-child\" data-id=\"4f0f811\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e8109db exad-sticky-section-no exad-glass-effect-no elementor-widget elementor-widget-image\" data-id=\"e8109db\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"128\" height=\"128\" src=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Avoid.png\" class=\"attachment-large size-large wp-image-22893\" alt=\"\" srcset=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Avoid.png 128w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Avoid-100x100.png 100w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Avoid-12x12.png 12w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Avoid-50x50.png 50w\" sizes=\"(max-width: 128px) 100vw, 128px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1970\" class=\"elementor-element elementor-element-e4e7008 e-con-full e-flex e-con e-child\" data-id=\"e4e7008\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-c56f4d9 exad-sticky-section-no exad-glass-effect-no elementor-widget elementor-widget-text-editor\" data-id=\"c56f4d9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h5><span style=\"color: #000080;\">Risk avoidance is when the project the team acts to eliminate the threat or protect the business from its impact.<\/span><\/h5><h5><span style=\"color: #000080;\">It may be appropriate for high-priority threats with a high probability of occurrence and a large negative impact<\/span><br \/><span style=\"color: #000080;\">Managers should think of alternatives in order to not have to face the risk.<\/span><\/h5><h5><span style=\"color: #000080;\">Avoidance may involve changing some aspects of the management plan or changing the objective that is in danger in order to eliminate the threat entirely, reducing its probability of occurrence to zero.<\/span><\/h5><h5><br \/><span style=\"color: #000080;\">The risk owner may also take action to isolate the company from the risk&#8217;s impact if it were to occur.<\/span><br \/><span style=\"color: #000080;\">Examples of avoidance actions may include removing the cause of a threat, extending the schedule, changing the business strategy, or reducing scope. Some risks can be avoided by clarifying requirements, obtaining information, improving communication, or acquiring expertise<\/span><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1971\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"2\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1971\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Transfer  <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1971\" class=\"elementor-element elementor-element-8684554 e-con-full e-flex e-con e-child\" data-id=\"8684554\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1971\" class=\"elementor-element elementor-element-93282fa e-con-full e-flex e-con e-child\" data-id=\"93282fa\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4f1a2cb exad-sticky-section-no exad-glass-effect-no elementor-widget elementor-widget-image\" data-id=\"4f1a2cb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"128\" height=\"128\" src=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Transfare.png\" class=\"attachment-large size-large wp-image-22895\" alt=\"\" srcset=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Transfare.png 128w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Transfare-100x100.png 100w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Transfare-12x12.png 12w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Transfare-50x50.png 50w\" sizes=\"(max-width: 128px) 100vw, 128px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1971\" class=\"elementor-element elementor-element-5b72a50 e-con-full e-flex e-con e-child\" data-id=\"5b72a50\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-fa7ce5d exad-sticky-section-no exad-glass-effect-no elementor-widget elementor-widget-text-editor\" data-id=\"fa7ce5d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h5><span style=\"color: #000080;\">Transfer involves shifting ownership of a threat to a third party to manage the risk and to bear the impact of the threat occurs.<\/span><\/h5><h5><span style=\"color: #000080;\">Risk transfer often involves payment of a risk premium to the party taking on the threat.<\/span><br \/><span style=\"color: #000080;\">Transfer can be achieved by a range of actions, which include but are not limited to the use of insurance, performance bonds, warranties, guarantees, etc.<\/span><br \/><span style=\"color: #000080;\">Agreements may be used to transfer ownership and liability for specified risks to another party.<\/span><br \/><span style=\"color: #000080;\">Example:<\/span><\/h5><h5><span style=\"color: #000080;\">At the start of the Great Depression of the 1920s, Americans rushed the banks to withdraw their life savings because they knew their financial institutions were about to collapse.<\/span><\/h5><h5><span style=\"color: #000080;\">Since the banks didn&#8217;t have any kind of risk transference in place, only a handful of their customers could withdraw their money before the banks ran out of capital.<\/span><br \/><span style=\"color: #000080;\">Today, all respected U.S. banks are members of the Federal Deposit Insurance Corporation (FDIC), which insures each account up to $250,000.<\/span><\/h5><h5><span style=\"color: #000080;\">This transfer of risk allows customers to trust banks. In turn, that trust allows banks to earn people&#8217;s business and prosper.<\/span><br \/><span style=\"color: #000080;\">The banks pay to be members of the FDIC.<\/span><\/h5><h5><span style=\"color: #000080;\">By doing so they transfer the risk of losing their clients&#8217; money to the FDIC, which is strong enough financially to avoid a repeat of 1929.<\/span><\/h5><h5><span style=\"color: #000080;\">If they didn&#8217;t do that, nobody would trust banks and their entire business model would fail.<\/span><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1972\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"3\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1972\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Mitigate  <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1972\" class=\"elementor-element elementor-element-8478784 e-con-full e-flex e-con e-child\" data-id=\"8478784\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1972\" class=\"elementor-element elementor-element-2341ceb e-con-full e-flex e-con e-child\" data-id=\"2341ceb\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-6143818 exad-sticky-section-no exad-glass-effect-no elementor-widget elementor-widget-image\" data-id=\"6143818\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"128\" height=\"128\" src=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Mitigate.png\" class=\"attachment-large size-large wp-image-22894\" alt=\"\" srcset=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Mitigate.png 128w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Mitigate-100x100.png 100w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Mitigate-12x12.png 12w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Mitigate-50x50.png 50w\" sizes=\"(max-width: 128px) 100vw, 128px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1972\" class=\"elementor-element elementor-element-dda5dd3 e-con-full e-flex e-con e-child\" data-id=\"dda5dd3\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-12fc135 exad-sticky-section-no exad-glass-effect-no elementor-widget elementor-widget-text-editor\" data-id=\"12fc135\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h5><span style=\"color: #000080;\">In risk mitigation, action is taken to reduce the probability of occurrence and\/or impact of a threat.<\/span><\/h5><h5><span style=\"color: #000080;\">Early mitigation action is often more effective than trying to repair the damage after the threat has occurred.<\/span><br \/><span style=\"color: #000080;\">Adopting less complex processes, conducting more tests, or choosing a more stable seller are examples of mitigation actions.<\/span><br \/><span style=\"color: #000080;\">Mitigation may involve prototype development.<\/span><\/h5><h5><span style=\"color: #000080;\">Where it is not possible to reduce probability, a mitigation response might reduce the impact by targeting factors that drive the severity.<\/span><br \/><span style=\"color: #000080;\">To mitigate the risk of not getting government sign-off in time for the proposed roll-out date, the company might engage the services of a consulting firm that specializes in insurance compliance in the state of California (in addition to having their lawyers scrutinize the plan, of course).<\/span><br \/><span style=\"color: #000080;\">For example, designing redundancy into a the system may reduce the impact of a failure of the original component.<\/span><br \/><span style=\"color: #000080;\">Example:<\/span><\/h5><h5><span style=\"color: #000080;\">An insurance company is planning to release a new auto insurance plan in the state of California.<\/span><\/h5><h5><span style=\"color: #000080;\">California has strict rules surrounding compliance, and if the plan doesn&#8217;t get approved by the state&#8217;s Insurance Commissioner, it might not launch on the roll-out date.<\/span><br \/><span style=\"color: #000080;\">That could end up costing the company a a great deal of money in all sorts of ways.<\/span><\/h5><h5><span style=\"color: #000080;\">For example, advertisements may be cued up and ready to run on the launch date, and pulling those ads could be costly.<\/span><br \/><span style=\"color: #000080;\">To mitigate the risk of not getting government sign-off in time for the proposed roll-out date, the company might engage the services of a consulting firm that specializes in insurance compliance in the state of California (in addition to having their lawyers scrutinize the plan, of course).<\/span><\/h5><h5><span style=\"color: #000080;\">The company might also negotiate flexible terms with advertisers, allowing them to postpone publication dates if necessary.<\/span><\/h5><h5><span style=\"color: #000080;\">Both are ways to potentially mitigate risk.<\/span><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1973\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"4\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1973\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Accept <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1973\" class=\"elementor-element elementor-element-e9962fb e-con-full e-flex e-con e-child\" data-id=\"e9962fb\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1973\" class=\"elementor-element elementor-element-825c61e e-con-full e-flex e-con e-child\" data-id=\"825c61e\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-cde9874 exad-sticky-section-no exad-glass-effect-no elementor-widget elementor-widget-image\" data-id=\"cde9874\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"128\" height=\"128\" src=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Accept.png\" class=\"attachment-large size-large wp-image-22892\" alt=\"\" srcset=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Accept.png 128w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Accept-100x100.png 100w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Accept-12x12.png 12w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Accept-50x50.png 50w\" sizes=\"(max-width: 128px) 100vw, 128px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1973\" class=\"elementor-element elementor-element-66091e5 e-con-full e-flex e-con e-child\" data-id=\"66091e5\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-0a16314 exad-sticky-section-no exad-glass-effect-no elementor-widget elementor-widget-text-editor\" data-id=\"0a16314\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h5><span style=\"color: #000080;\">Risk acceptance acknowledges the existence of a threat, but no proactive action is taken.<\/span><\/h5><h5><span style=\"color: #000080;\">This strategy may be appropriate for low-priority threats, and it may also be adopted where it is not possible or costeffective to address a threat in any other way.<\/span><br \/><span style=\"color: #000080;\">Acceptance can be either active or passive.<\/span><\/h5><h5><span style=\"color: #000080;\">The most common active acceptance strategy is to establish a contingency reserve, including amounts of time, money, or resources to handle the threat if it occurs.<\/span><\/h5><h5><span style=\"color: #000080;\">Passive acceptance involves no proactive action apart from a periodic review of the threat to ensure that it does not change significantly.<\/span><br \/><span style=\"color: #000080;\">Example<\/span><\/h5><h5><span style=\"color: #000080;\">Airlines frequently overbook flights with the understanding that a certain number of people will cancel their flights.<\/span><\/h5><h5><span style=\"color: #000080;\">With thousands of flights per month, some of those flights will inevitably end up with too many passengers on the books&#8212;at which point the airlines begin offering incentives (such as flight credits) to lure people off the plane.<\/span><br \/><span style=\"color: #000080;\">If that doesn&#8217;t work, the airlines are forced to kick some people off the flight. They know this will create unhappy customers, but they&#8217;ve accepted that risk.<\/span><\/h5><h5><span style=\"color: #000080;\">Since they&#8217;ve embraced the risk, nobody is shocked when Karen from Milwaukie tweets about the the awful experience she had on her return flight from Honolulu.<\/span><br \/><span style=\"color: #000080;\">Why accept these consequences? They&#8217;ve done the math, and they know that in order to compete in a price-sensitive market, they need to pack their flights as full as possible.<\/span><\/h5><h5><span style=\"color: #000080;\">If they don&#8217;t fill as many seats as possible, their profits drop, and they can&#8217;t offer those low fares we all love.<\/span><\/h5><h5><span style=\"color: #000080;\">In short, they can&#8217;t compete without overbooking, so they&#8217;re willing to accept the occasional angry tweet in exchange for packed flights.<\/span><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>","protected":false},"comment_status":"open","ping_status":"closed","template":"","class_list":["post-21935","lesson","type-lesson","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Lesson 2: 4 alternative strategies - Certifeka-edu<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/certifeka-edu.com\/ar\/programs\/finance-for-strategic-managers-accounting-professional-certificate\/lessons\/lesson-2-4-alternative-strategies\/\" \/>\n<meta property=\"og:locale\" content=\"ar_AR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lesson 2: 4 alternative strategies - Certifeka-edu\" \/>\n<meta property=\"og:description\" content=\"Lesson 2 :Understanding Business Risk 4 alternative strategies 4 alternative strategies may be considered for dealing with threats, as follows: Avoid Risk avoidance is when the project the team acts to eliminate the threat or protect the business from its impact. 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