The Optimizing of Risk Management in Preventing Financial Losses and Maintaining Company Stability
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Abstract
Risk management is an important element to maintain the company's financial stability amid increasingly complex business uncertainties. Companies that do not have an effective risk management strategy have the potential to experience significant financial losses and operational disruptions that can hinder business growth. This study aims to analyze how companies implement risk management to protect assets and prevent financial losses. The literature study approach is used in this research to examine various strategies and challenges in the implementation of risk management and its impact on company stability. The results of the study show that the success of risk management is highly dependent on proper risk identification, the use of technology in financial monitoring, and the implementation of mitigation policies that are appropriate to the characteristics of the company. Many companies still face obstacles such as a lack of awareness of the importance of risk management, limited access to accurate data, and unpreparedness to deal with regulatory changes. Companies need to develop a more adaptive and data-driven risk management system in order to anticipate threats that could potentially harm the business. Effective risk management can help companies to increase their resilience to uncertainty and ensure business sustainability. The implications of this study indicate that investment in strengthening risk management strategies is an important step for companies to achieve competitive advantage in the industry.
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