Strategic risk management can be defined as the identification and evaluation of actual and potential risk areas as they pertain to an organisation as a total entity, followed by a response to the identified risk as a process of either avoidance, termination, transfer, tolerance (acceptance), exploitation, or mitigation (treatment) of each risk, or a response that is a combination or integration of these.

6.1 Identify the most important strategic risk originating from the external environment of Netflix.

6.2 Identify the risk response to the identified strategic risk in question 6.1. Substantiate your answer.