Post by account_disabled on Mar 6, 2024 1:19:34 GMT -5
The a very complex area with very detailed methodologies and formulas for calculating risk. In this tutorial however well use a simple approach that any small business owner can readily adopt. n measuring risk in your business is to get a much clearer idea of what your risks are. We identified the main areas in the last tutorial so now its time to dive much deeper into each one. Go over your business plan and all of your businesss activities and ask yourself a series of tough What if... questions. As a business owner it usually pays to be an optimist but in this case youll need to think of the worstcase scenarios. Put on your pessimists hat for a while and make a list of everything that could go wrong.
Here are some examples of specific questions you could ask in each area of risk. Strategic Risk Is the business highly dependent on a particular technology that could Job Function Email List be superseded What if the cost of our raw materials doubled Can people survive without our productservice What would happen if a powerful competitor entered the market and started a price war Is there a chance that what we provide will simply go out of fashion and do we have a plan to adapt Compliance Risk Are we expanding to any new markets that may expose us to new regulatory requirements.
How sure are we that weve been complying with every single rule and regulation that applies to our business What if theres a rule weve unwittingly been breaking and we have to pay a fine If we hire more employees does that expose us to any new employment regulations What if the government decided to put new onerous restrictions on our core business activity Operational Risk How reliable are our systems and technology How often do they fail What would happen if we lost power for more than 24 hours Do we have sufficient controls on the flow of money.
Here are some examples of specific questions you could ask in each area of risk. Strategic Risk Is the business highly dependent on a particular technology that could Job Function Email List be superseded What if the cost of our raw materials doubled Can people survive without our productservice What would happen if a powerful competitor entered the market and started a price war Is there a chance that what we provide will simply go out of fashion and do we have a plan to adapt Compliance Risk Are we expanding to any new markets that may expose us to new regulatory requirements.
How sure are we that weve been complying with every single rule and regulation that applies to our business What if theres a rule weve unwittingly been breaking and we have to pay a fine If we hire more employees does that expose us to any new employment regulations What if the government decided to put new onerous restrictions on our core business activity Operational Risk How reliable are our systems and technology How often do they fail What would happen if we lost power for more than 24 hours Do we have sufficient controls on the flow of money.