Risk management in your business!

When it comes to business, investment any venture that involves man and money etc. Their is always a risk that is attached to it. But ability to manage those risks amicably and clinically, gives us an edge to be successful in whatever initiative we crave to make profit end.

Do you apply risk management in your business initiative??

 

[Denuola]

Business risk management is a subset of risk management used to evaluate the business risk involved if any change occur in the business operation, system and process. It identifies, prioritize and addresses the risk to minimize penalties from unexpected incident by keeping them on track.

 

[Miracles04]

As an entrepreneur, is risk management something you think about or even think applies to your business?
Many large and medium companies spend a lot of time and resources on risk management and have it embedded in their culture. This includes defining the components of risk, and developing frameworks and processes on how to identify, measure and manage risk. It is never too soon in the life of a small business to think about and address these elements.
Risk management is a process in which businesses identify, assess and treat risks that could potentially affect their business operations.
What is a risk?
A risk can be defined as an event or circumstance that has a negative effect on your business, for example, the risk of having equipment or money stolen as a result of poor security procedures.
Common types of risk for small businesses
Types of risk vary from business to business, small business owners must decide on how much risk you are prepared to take. Some risks may be critical to your success; however, exposing your business to the wrong types of risk may be harmful and may even lead to bankruptcy. The most common business risk categories are:
Strategic risk – decisions concerning your business’ objectives
Compliance risk – the need to comply with laws, regulations, standards and codes of practice
Financial risk– financial transactions, systems and structure of your business
Operational risk – your operational and administrative procedures
Environmental risk - external events that the business has little control over such unfavorable weather or economic conditions
Reputational risk – the character or goodwill of the business.
Others include health and safety, project, equipment, security, technology, stakeholder management and service delivery.

Preparing a risk management plan

As a small business owner, you may be wearing many hats and overwhelmed as everything is a priority. How do you drive your business and manage all of these areas of risk and the associated costs?

Consider adopting an enterprise risk management method instead of approaching risk management within categories or silos as described above. Enterprise risk management is a strategic, top-down and holistic approach to risk management which incorporates market, credit, operational and reputational risk. Enterprise risk management can help you to define and align your risk appetite with strategy, and with the way you operate your business

Your risk management plan should detail strategies for dealing with risks specific to your business. It’s important to allocate time and resources to preparing your plan to reduce the likelihood of an incident affecting your business.
You can develop a risk management plan by following these steps:
1. Identify the risk
2. Assess the risk.
3. Treat the risk.
4. Monitor and review


1. Identify the risk
Undertake a review of your business to identify potential risks. Some useful techniques for identifying risks are:
i. Evaluate each function in your business and identify anything that could have a negative impact on your business.
ii. Review your records such as safety incidents or complaints to identify previous issues.
iii. Consider any external risks that could impact on your business.
iv. Brainstorm with your staff.
v. Ask yourself ‘what if’:

 Your premises were damaged or not accessible?
 Your suppliers went out of business?
 There was a natural disaster in your area?
 One of your key staff members resigned or was injured at work?
 Your computer system was hacked?
 Your business documents were destroyed?

2. Assess the risk
You can assess each identified risk by establishing:
 The likelihood (frequency) of it occurring
 The consequence (impact) if it occurred



To determine the likelihood and consequence of each risk it is useful to identify how each risk is currently controlled. Controls may include:
 Elimination
 Substitution
 Controls
 Personal protective equipment.

3. Manage the risk
Managing risks involves developing cost effective options to deal with them including:
i. Avoid the risk - change your business process, equipment or material to achieve a similar outcome but with less risk.
ii. Reduce the risk - if a risk can’t be avoided reduce its likelihood and consequence. This could include staff training, documenting procedures and policies, complying with legislation, maintaining equipment, practicing emergency procedures, keeping records safely secured and contingency planning.
iii. Transfer the risk - transfer some or all of the risk to another party through contracting, insurance, partnerships or joint ventures.
iv. Accept the risk – this may be your only option.
4. Monitor and review the risk
You should regularly monitor and review your risk management plan and ensure the control measures and insurance cover is adequate. Discuss your risk management plan with your insurer to check your coverage.

 

[Asad Ali]

Every business comes together along with his very own danger. It could be very vital for marketers to realize the way to control them while they occur. Some dangers can't be avoided and as such it need to be anticipated and properly controlled whilst it occurs. It could be very critical that sure matters are installed region so as now no longer to permit the chance have an effect on the enterprise to a excellent extent

 

[Tariq Shehzad]

Danger the board alludes to the act of recognizing possible dangers ahead of time, breaking down them and finding a way to lessen/check the danger. At the point when a substance settles on a speculation choice, it opens itself to various monetary dangers.

 

[idhans]

When it comes to business, investment any venture that involves man and money etc. Their is always a risk that is attached to it. But ability to manage those risks amicably and clinically, gives us an edge to be successful in whatever initiative we crave to make profit end.

Do you apply risk management in your business initiative??

This is the most important thing in any business that you are about to go into. You must be able to learn how to identify the various risk involved in that business, and you must be able to asess the risk, and manage the risk at the end of your assessment.

 

[Kelly5]

When it comes to business, investment any venture that involves man and money etc. Their is always a risk that is attached to it. But ability to manage those risks amicably and clinically, gives us an edge to be successful in whatever initiative we crave to make profit end.

Do you apply risk management in your business initiative??

Wether it is for a running business or for a proposed business, risk business is very important in every endeavour. In your already running business you manage your risks. In your proposed business, you plan your risks as well.

 

[Youngdee]

Risks management is an important process because it empowers a business with the necessary tools so that it can adequately identify and deal with potential risks. Once a risk’s been identified, it is then easy to mitigate it. In addition, risk management provides a business with a basis upon which it can undertake sound decision-making.

 

[Seyesystem]

Everything in this world involves risk even life itself is risky so and business every business involve risk which the risk faced buy one business maybe different from the risk face by another business. For me the most common risk faced by every business is risk of management and management is key to every successful business because if a business is not properly managed it may likely close down and for a business to be successful there must be effective management of both the capital and the human resources of the organisation.

 

[ranaabubakar263]

A risk can be defined as an event or circumstance that has a negative effect on your business, for example, the risk of having equipment or money stolen as a result of poor security procedures. Risk is present in every kind of business so be carefull and get good experience.

 

[arrain3786]

Economic Risk. The economy is constantly changing as the markets fluctuate. ...
Compliance Risk. ...
Security and Fraud Risk. ...
Financial Risk. ...
Reputation Risk. ...
Operational Risk. ...
Competition (or Comfort) Risk.

 

[Sammyesx]

Risk management is very necessary for any business, for every business there is always a degree no matter how small ,so in other not to lose too much money one has the master the act of risk management

 

[Onachukwu]

strategic –decisions concerning your business’ objectives
Compliance –the need to comply with laws, regulations, standards and codes of practice
Financial –financial transactions, systems and structure of your business
Operational –your operational and administrative procedures

 

[Diamond07]

Risk management is a process in which businesses identify, assess and treat risks that could potentially affect their business operations. There are various risks that can threaten a business and we must find possible ways to mitigate them

 

[Axad. Mrb]

risk can be defined as an event or circumstance that has a negative effect on your business, for example, the risk of having equipment or money stolen as a result of poor security procedures. Types of risk vary from business to business.
You must decide on how much risk you are prepared to take in your business. Some risks may be critical to your success; however, exposing your business to the wrong types of risk may be harmful.

 

[Eyiteepraise]

Risk management is a process in which a business identify, assess and treat risk that could that could potentially affect the business operations. In managing a business risk, I think one need to be decisive.

 

[Yewande]

Risk Management is very important in your business. Not every risk you should take on. There are some times you have to trade on a saver side. Business personnel should always evaluate the amount of risk involve in an investment.

 

[Nurudeen]

Yes, the risk management I use in my business mostly is diversification. Mostly, I often diversify promptly so that it won't be as if I'm putting all my eggs in one basket. I believe if one of my portfolio is down another one will Carry me immediately

 

[Romanmam]

Economic Risk. The economy is constantly changing as the markets fluctuate. ...
Compliance Risk. ...
Security and Fraud Risk. ...
Financial Risk. ...
Reputation Risk. ...
Operational Risk. ...

 

[Seun4luv]

Business risk management is a subset of risk management used to evaluate the business risk involved if any changes occur in the business operations, systems and process. It identifies, prioritizes and addresses the risk to minimize penalties from unexpected incidents, by keeping them on track.

 

[Greatguy1]

Your risk management plan should detail strategies for dealing with risks specific to your business. It’s important to allocate time and resources to preparing your plan to reduce the likelihood of an incident affecting your business.

Every business would plan for risks that is the need for getting an insurance policy. The more averse the job is the better the insurance the business should have. Risks are associated with our everyday life and we must plan for it