One effective approach for handling both pure and speculative risks simultaneously is through the practice of enterprise risk management. This strategy involves identifying, assessing, and mitigating any potential risks that could impact an organization's overall performance. By adopting a holistic approach, enterprise risk management allows for a comprehensive understanding of all potential risks and their potential impact. This not only enables businesses to anticipate and prepare for potential challenges, but also allows for effective decision making and resource allocation. Therefore, it is crucial for businesses to consider implementing enterprise risk management as a key component of their risk management strategy.
