Why Risk Management should Be Part of a Business Plan?

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risk-management

If you analyze it in every critical decision you do there’s risk involve– the kind of risks that can make or break your path. But between negative and positive, it’s advisable for everyone especially businessmen to always look on the positive side. This is because every day it’s like a quest for in entrepreneurship you can’t really tell if you’re going to hit your quota or there’s continuous cash flow.  So are you just going to ignore the negative issues you encounter in managing your business?

“The process of identifying risks, assessing risks and developing strategies to manage risks is known as risk management. A risk management plan and a business impact analysis are important parts of your business continuity plan. By understanding potential risks to your business and finding ways to minimize their impacts, you will help your business recover quickly if an incident occurs,” Business and Industry Portal of Queensland Government’s explanation.

The said business portal also shared that though there different kinds of risk, the process to solve it is common and that includes clearly identifying your strategies.

“It’s important to allocate some time, budget and resources for preparing a risk management plan and a business impact analysis. This will help you meet your legal obligations for providing a safe workplace and can reduce the likelihood of an incident negatively impacting on your business,” the business site added.

Another note about thinking possible business problems is its not negative thing, but you as a captain of your company is just realistic than idealistic.  Risk management is part of plan to achieve your business goals in the end. It’s like if you are sick, you will not wait to be a bed-ridden patient before you take medicine and you don’t even consider having illness before you drink vitamins and supplements.  So like shields to protect you from harmful elements, here the five quick steps for your risk management.

  • Be up-to-date with the latest news and learn from them.  Reading current events especially those inside business section. There you’ll know triumphant companies and in the verge of losing, the status of the economy and potential ideas to adapt.  Learn also from global news because what happens in international market may have direct and indirect impact in Philippine economy.  Do you know what’s happening now in Greece’s economy?
  • Solve immediately those frequent complaints and negative issues. Once maybe isolated case second should be enough, but the third and fourth occurrences of same concern means bad management. Don’t waste time to initiate action and analyze what policies to tweak to address the situation.   For example if you’re experiencing constant technical problem on your online store, switch to better webhost or get skilled web developer.
  • Work with your team.  Employee is not just there to wait for your command; they have also voice and opinions that significant for your problem-solving technique.  Start to have regular brainstorming with them to get their experiences with the clients.
  • Communicate with your customers. Like your employee customers also offer suggestions. Apart from that, they are also willing to understand your side if you know how to explain them your concerns.
  • Use technology to ease, lessen and help your business. Modern technology offer both convenience and innovation.  Search for apps and online services that you can use now or in case of emergency.

“Use technology to innovate and disrupt whatever risk you’re heading toward. Focus on eco-efficiency to reduce energy costs and risk,” INC. reported.