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Which statement best describes Amazon's approach to risks?

To avoid risks entirely

To take reckless risks

To take calculated risks while maintaining a focus on customers

Amazon’s approach to risks emphasizes taking calculated risks while prioritizing customer focus. This means that the company does not shy away from risks; instead, it carefully evaluates potential benefits and downsides. By employing a calculated approach, Amazon can innovate and improve its services while minimizing potential negative impacts on customers.

This strategy aligns with Amazon's core philosophy of customer obsession, where decisions and risk-taking are guided by how they will benefit the customer experience. This calculated risk-taking mindset allows Amazon to pursue bold initiatives, launch new products, or enter new markets without compromising its commitment to customer satisfaction.

In contrast, avoiding risks entirely would limit innovation and growth potential, while reckless risk-taking could lead to significant failures that detract from customer trust. Transferring all risks to other teams does not foster accountability or ownership, which are essential components of organizational success. Thus, taking calculated risks with a focus on customers perfectly captures Amazon’s unique approach to managing risk.

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To transfer all risks to other teams

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