UNDERSTAND THE RISKS AND REWARDS

Before a business enterprise takes any risk, it should first understand the risk and the reward attached to the risk. In understanding a risk, a business enterprise has to know what the risk entails, its advantages and disadvantages. Furthermore, a business enterprise should weigh the advantage and disadvantage of taking a particular risk. If it is seen that the level at which a particular risk would yield positive result is not convincing, its best such risks should not be taken. A business enterprise should know and understand a risk and its reward before taking such risk. It could end up killing the business enterprise.
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A business enterprise should not just jump on a risk without understanding it and fully knowing the things attached to it. A business enterprise is very fragile and a little mistake could ruin what has been in existence for many years.