EntrepreneurshipEntrepreneur's Risk Management Strategies

Entrepreneur’s Risk Management Strategies

-

- Advertisment -

Entrepreneur’s Risk Management Strategies

Risk is as old as man and has been an old time acquaintance of businesses. There is no approach that will make risk to go extinct in business environment however; it can be controlled to an appreciable level. As an entrepreneur, you are duty bound to reduce your risk level to the barest minimum if you can continue to make profit. To this end, better risk management strategies are good inhibitors of business failures.

No matter what the sizes are, companies must have an approach to risk management since they can be easily managed when identified. To protect a business against risk, an entrepreneur needs to do the following:

1. Stop activities associated with risk: Activities that brings about risks to an organization need to be stopped. For instance, if a business fund is not separated from a personal fund, the temptation of using the company’s fund for personal expenses will always be there. Quick and unilateral decisions of top members of the management most times pose great risks to the company.

- Advertisement -

2. Spread the risk: there is no need for the risk to be concentrated on your desk. Spread the risks in form of contracting out some projects/services with a performance bond signed by the contracted firm can help. Sometimes, selling out products on credit to trusted customers can help to minimize the risk of obsolesce and high inventory cost.

3. Reducing risk through better management control: if the pros and cons of running an organization is properly spelt out for management staff, employee and customers etc, certain risks will be averted in the business. Proper management of the company’s data also helps to prevent risk. Hardcopy data can be digitalized and stored by reputable data managers for safety.

- Advertisement -

4. Insuring against risk if possible: a company need to insure against damage brought about by fire and natural disasters.

5. Apply improved technology: if risks will be averted, modern techniques will be applied in the operation and service provision of any company. This will enhance the business supply chain management hence making service provision to be excellent.

Managing some aspects of our businesses against risks takes automation. This will eliminated a lot of human errors associated with the risks. To be able to reduce risks in planning, monitoring and evaluation, software tools will be a veritable instrument.


Source
by Chinedu Ossai

Get Your News on Wundef.com
- Advertisement -

Send us your business and entrepreneurship stories/news and articles to admin@wundef.com or through whatsapp, +233247516850.

Subscribe to our Youtube Channel, Like our Facebook Page

And also follow us on Twitter

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

AMCOW appoints Dr. Rashid Mbaziira as the new Executive Secretary

The African Ministers Council on Water (AMCOW) has announced the appointment of Dr. Rashid Mbaziira – a Ugandan national...

Cathy Smith of SAP Africa Scores a Spot on the Africa.com Definitive List of Women CEOs of the Biggest & Most Complex Businesses in...

Africa.com undertook a rigorous research project to identify the women who run the largest, most complex businesses on the...

Tech in Twi: Sony to Release an Xperia Device This Month

Sony has announced the release of an Xperia device later this month. Lets take a look at devices they...

Remote Deposit Capture in the Hands of a Criminal

Technology and digitalisation is helping lots of businesses grow especially in this times that we find ourselves (Covid-19 times)...
- Advertisement -

CEO of Eddymat Green Services Seeks to Make his company Africa’s Number 1 Landscaper and Lawn Care Company

Edmund Atta-Poku, the young Chief Executive Officer of Eddymat Green Services located at Kyekyewere in the Ashanti region of...

From Nigeria to Ghana, Rosine Wishes to Establish Restaurants Across The Country

Born to a Nigerian father and Ghanaian mother, Fiawoo Rosine Chinenye moved to Ghana in 2016 for her education....

Must read

- Advertisement -

You might also likeRELATED
Recommended to you