HOW TO MANAGE RISKS IN BUSINESS

By Matata Mercy

 Many people out there would like to venture into the world of business and it is a dream of so many people out there to atleast own a business and enjoy the joy of being their own boss.

Image result for PICTURES OF A STARTUP BUSINESS

Before you are able to launch any business, you should be well aware that there are always risks that are involved in running any business and if you are going to succeed in running such businesses successfully, you will need to learn how to be able to manage risks and also reduce the risk of losing out on your business to  a minimum level.

  Today, i will give you some tips on how you can be able to manage risks that are involved in the world of business and how you can also  be able to control these risks properly.

1. Identify the risks that are involved in the business you venture into 


 It will be very difficult for you to manage the risks that you are not aware of in the first place. If you are going to be able to manage and reduce the risks that are involved in your business, you will need to first of all be able  reducing the risks.

 If you are running an online business, what could be the risks that are involved in online business?  The worst case scenario that could happen to your online business could be that your website could be hacked and taken down by hackers.

 Credit card details of your customers could be stolen by hackers and this could destroy the reputation of your business.

Now that you are aware of the risk involved in running your online business, you will now need to deploy the best ways in which you can protect and keep your users secure and protected.

2. Asses the risk involved in your business


Now that you have been able to identify the risks that are involved in your business, you will now need to analyse and asses the risks that you have been able to identify in your business.  For example the risk involved in online business is that your website could be hacked and that is what you are fearing.

You should sit down and analyse whether it is true that your website can be hacked by hackers. What chance is there that your website will be taken down by hackers and how possible is it?

  If the chance of hackers breaking into your website is minimal, then you should not worry so much about it and  instead focus on providing the best service for your customers online.

 If on the other hand, you realise that your business needs to have a more secure way of doing things, you will need to provide more security for your website like by putting their firewalls or passwords for your users to access your service and more.

3.  Control the risks that are involved in the business

If you have been able to identify the risks that are available in your business, you should now start looking for ways in which you will be able to control and stop those risks from occuring in your business.

If the risk in your business is emebezzlement of funds by your employees, you will need to look for ways in which you can be able to control cashflow in your business.

 You could put up some accountants or Chief  Finance Officer in charge of your business so that they can be able to monitor your business.

4. Monitor the risk cycle in your business


Monitoring the risk cycle in your business is very important to the success of your business.You should always be able to see the threats that are likely to destroy your business before they do come into play.

Technological advancements can sometimes label your business model useless if you do not pivot your business into the modern ways quickly.  Understanding the risk levels of your business will help keep your business healthy and operating well.

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