An entrepreneur keeps back up funds in a savings account so that if their business experience a loss they will be able to recuperate what type of risk management is this an example of?

It is an example of financial risk management since it involves being prepared whenever there is a sudden bankrupt in the business. In the situation, the entrepreneur acknowledges the uncertainty of his or her business which leads to the contingency plan. The individual makes sure that the savings account is monitored just in case when things dont't become favorable for the business.