Risk And Business

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There is a reason not everyone can go into business or handle what it takes to have a successful business, for most it is their inability to process or accept that every business comes with its own risk and it's quite normal. The fear of something bad happening or they loosing all they invested is one factor that keeps many below the poverty line. Every business has risk attached to it for example physical risk, location risk, human risk, financial risk, technology risk, strategic risk and so many more and it simply depends on how much risk you can handle or how much caution you can take. In business, risk is the possibility of making inadequate profit or none at all due to uncertainties that can or cannot be controlled for example change in government policies, strikes, change in government, change in customer preference, competition, obsolescence and many other depending on the type of business you happen to run. It is a threat to your company's ability to achieve it's goals mostly financially.

While some factors can't be controlled like in the case of increased price of raw materials, change in government policies others can be dealt with to an extent that decreases the chances of you loosing everything. But before these risks can be dealt with you have to look at the business from every angle to think of possible risk attached to them. It's like breaking your business down to different level and then figuring what exactly could go wrong with each of them. Next imagine the worst that could happen to your company or better still consult an expert to help out with certain areas like your finance or your insurance. There are also many technological strategies that can help you identify risks and so take the stress off your hands by creating risk maps, conducting simulations or test or you can go to organizations that will provide information that will help you identify risks that are peculiar to your business.

When all these risks have been identified the next thing is to assess them critically and prioritize them on the scale of how probable they are likely to occur. This will also help you determine which risk have to be dealt with now and which can be dealt with later. Risks that are of high priority have to be acted on as soon as possible and also at the right time so other factors are not affected for example not insuring your company against theft in an area densely populated and has a high criminal record or in the case of an information company the likelihood of hackers stealing information is high and so it is of high priority that you install strong firewalls and carry out hacking test to make sure your security is hack proof. All risk require different approach and figuring the best way to deal with them in time as well as involving your employees will reduce risk to a level manageable as well as help put your mind at rest while doing business.