Separating potential threats into internal or external risks aids in effective risk management by allowing for a more focused and tailored approach to each type of risk. Internal risks, such as operational, strategic, or financial risks, can be managed directly within the organization. They can be further broken down into categories like product design, manufacturing, systems, and software, each managed independently. External risks, on the other hand, are outside the organization's control but can be mitigated through strategies like insurance, hedging, and diversification. By separating risks in this way, organizations can better understand, prioritize, and manage them.
Did you know the Model 3 was one of Tesla’s biggest risks? Our Risk Management deck reviews the top...
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