Risk Mitigation Strategies For Business Operations In The Industrial Sector

Abstract

Risk is an opportunity or an uncertain event that may prevent plans or operations from achieving their intended objectives. Such risks can result in both financial loss and damage to an organization’s reputation and public image. This study aims to explore risk mitigation strategies in the industrial sector. A mixed-methods approach comprised in-depth interviews with nine experts and a focus group discussion involving eleven distinguished professionals. Quantitative data were collected through a survey of 500 executives in the industrial business sector. The research applied descriptive statistics, inferential statistics, and multivariate analysis. The findings reveal four key components of risk mitigation strategies ranked in order of importance: 1) Policy and Activity, 2) Good Corporate Governance, 3) Monitoring Activities, and 4) Information Management. Hypothesis testing showed statistically significant differences at the 0.05 level between the two business groups.The developed structural equation model met acceptable criteria and was found to be consistent with empirical data, with a chi-square probability level of 0.068, a relative
chi-square of 1.132, a goodness-of-fit index (GFI) of 0.954, and a root mean square error of approximation (RMSEA) of 0.016.