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How should companies make an allowance for risk in making strategic choices? 1.Assess potential losses from strategic options and select those with the least risk

How should companies make an allowance for risk in making strategic choices?

1.Assess potential losses from strategic options and select those with the least risk

2.Avoid strategic risks by introducing appropriate management controls

3.Assess whether the strategy would be consistent with the company's risk appetite

4.Carry out 'what if' analysis to measure the potential scale of losses

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