Risk And Business

in Project HOPE3 years ago

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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.

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The risk is always present in our lives, when it comes to business the risks are even more present, anyway the one who does not risk in business will never know if he can win.

Greetings and thanks for your contribution.

hello @valchiz,
everything in life represents a risk of failure, the only thing that can help to lower the chances of failure is to have detailed information of the entire process, from the price of raw materials to the market to which you will sell your product, insurance is an excellent option to be safer if things do not go as expected, always remember that with timely information you can avoid many of the risks faced daily by companies.

 3 years ago 

He who does not risk neither wins nor loses.
In that sense, if you don't want to win or lose then don't do anything, it means that you are not good to have a business.

you have to be risky to succeed in any area of your life and more if you want to be successful in your business, to be successful you simply must take risks.

Business definitely has so many risk attached to it, it is completely impossible to venture into a business that doesn't have it's critical moments of ups and downs but been able to navigate through those risks and get them reduced will do a lot of good.

Risk and business go hand in hand if you are doing business you need to be prepared for the risk we need to always have a back up plan.

Greetings @valchiz it is a reality, every business has its risks, knowing how to deal with them is part of the business, through the different strategies that can be applied, and thus overcome each of these risks, although some affect us is part of the business, which is taken into account as business risk.

Good evening. It reminds me of the SWOT technique, determining the opportunities and threats allows us to know what to risk and what are the possible consequences. It is true that every business involves risks and whoever is not willing to understand that and assume it, lacks the personal skills to establish such a business. Greetings.

Hello @valchiz risks are present in any area of our existence and more in the area of business where we must manage with caution to avoid making decisions that allow us to face the loss of our capital or company, so that the fear of failure and risk makes us more attentive to the different investments we can make. Thank you for your contribution