{"ok":true,"canonical_url":"https://dealroom.so/glossary/risk-mitigation","api_url":"https://dealroom.so/api/public/glossary/risk-mitigation","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"risk-mitigation","term":"Risk mitigation","group":"Reading the business","definition":"Strategies and actions taken to reduce the likelihood or impact of potential problems for the business. Lenders look for this to protect their investment.","what_it_means":"During due diligence, identify key business risks (e.g., customer concentration, key employee dependence) and plan how you'll mitigate them. For example, key man insurance mitigates the risk of losing a critical employee. Presenting a solid risk mitigation strategy strengthens your loan application by assuring the lender of your preparedness.","url":"https://dealroom.so/glossary/risk-mitigation","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"risk-profile","term":"Risk profile","url":"https://dealroom.so/glossary/risk-profile"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"key-man-insurance","term":"Key man insurance","url":"https://dealroom.so/glossary/key-man-insurance"},{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"}],"related_questions":[]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Risk mitigation","url":"https://dealroom.so/glossary/risk-mitigation","source_type":"DealRoom Data"}}