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Top companies like Netflix adapt their risk management strategies in response to changing market conditions in several ways. For instance, when Netflix noticed a slowdown in gaining new subscribers from original programming, it reduced its debt and canceled its original series at a faster rate. This is a risk mitigation strategy to control costs and avoid overspending on content that may not bring in new subscribers. However, recognizing video game streaming as a new growth area, Netflix decided to take on some new risks and invest in the gaming sector. This is a risk-taking strategy aimed at attracting new subscribers and exploring new revenue streams.
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In Netflix's case, as the company's ability to gain new subscribers from original programming has slowed, it has taken on less debt and canceled its original series at a faster rate. However, since video game streaming represents a new growth area, it can take up some new risks and make new investments in the gaming sectors as a way to attract new subscribers.
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Our Risk Management deck reviews the top Risk Management tools from the biggest consulting firms like McKinsey, Bain, and BCG who advise companies lik...
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