Risk involved in business

[Peppul]

When starting a business there are several risk involved in starting a business, here are few risks.
1. Economic risk - the economy is constantly changing as the market fluctuate, some positive changes are good for the economy which lead to booming purchase environments. While negative events can reduce sales. To counter economic risk save as much money as possible to maintain a steady cash flow.
2. Compliance risk - business owners face an abundance of laws and regulations to comply with, for example payment processing compliance could impact how you handle certain aspect of your operation.
3. Security and fraud risk - as more customers use online and mobile channels to share personal data, there is also greater opportunity for hacking, not only does this risk impact trust and reputation but a company is also financially liable for any data breaches or fraud.
4. Reputation risk - there has always been the risk that an unhappy customer, product failure, negative press or law suit can adversely impact a company's brand reputation also if good measures are not put into place.

 

[kayode10]

Hardly you can see a business that doesn't have risk associated with it. Entrepreneur needs to know about all this risk at first before venturing to start up a business.

They should know the difference between blind risk and calculated risk. A blind risk will sync the company if care is not taken right from the onset. Why the calculated risk still put a lot of things into consideration before you take action.

Well thank you for sharing this wonderful information. I will have to bookmark this page for future references. I will use all these things you mentioned as a checklist whenever I want to start up a new business.

 

[Ephy]

Every business you invest in, that's the first huge risk your taking cause you never know if the business is worth the investment or it might collapse any time by giving you losses. Another big risk is insecurities for example theft, that's why you are encouraged to look into details the security of any place before getting your self into the business. If security it's not that good you can improve it but keeping more security guards. Another thing is low demand due to epidemic like corona which have led to low economic and loose of jobs. People reduce the rate at which they used to buy good due to poor or lack of enough capital.

 

[Seyesystem]

In business there are a lot of risk associated with a business which may be financial,economical and environmental.Business risk refers to a threat to the company’s ability to achieve its financial goals. In business, risk means that a business plans may not turn out as as planned or that it may not meet what is expected of or achieve the organisation goals.Such risks cannot always be blamed on the owner of the business as risk can be influenced by various factors which may include internal or external, rising prices of raw materials for production, growing competition, or changes or additions to existing government policies. Those are what always affect business in achieving it goals.

 

[Donkiz]

There's no easy business, every business comes with its own risks and challenges. Most big organizations usually set aside a department whose sole responsibility is to manage the organizational risks, that's to show how important risk management is to business.

Inability to manage the risks involved in your business might lead to loss of customers, loss of money, loss of business opportunities, or even collapse of the business. So it's very important that we identify the risks involved in our businesses, and find a way to manage them successfully.