There are five types of business risk that I might face.
* Strategic Risks
Are thoes risk associated with operating in my tea shop. They include risks arsing from: * Acquisition activity
* Changes a mong customers or in demand
* Research and development
* Compliance Risk
Compliance risk are those associated with the need to comply with laws and regulations.
* Financial Risk
Financial risk are associated with the financial structure of the business. The transactions the business makes, and the financial systems that already have in place. * Examining daily financial operation.
* Watching the cashflow
* Employee risk management, such as maintaining sufficient staff numbers and cover, employee safety and up-to-date skills * Health and safety risks
* Operational risks
Operational riska are associated with my tea shop’s operational and administrative procedures. These include: * Recruitment
* Supply chain
* Accounting controls
* IT system
* Internal rules, policies and procedure
* Other risks
* Environmental risks
Being in business involves risks. Some you’ll be aware of, but there may also be others that have escaped your attention. 5 step will take the business to safeguard from outlined risks. 1) Identify sources of risk
* These are the things you own or do that expose you to potential financial loss. * Damage to property owned by or rented to the business
* Damage to other people's property for which the business is legally responsible * Loss of income
* Injury to an employee
* Injury to another person for which the business is legally responsible
2) Estimate risk and potential losses
In this step that estimate both the frequency and severity of losses that might occur.
3) Decide how to handle risk
There are several options you can use to handle each risk you identify. You can decide to avoid risk by not doing things that put you at risk. You can handle a risk by loss control, taking action to reduce either the frequency or the severity of losses that occur. You can transfer the risk by buying insurance or, finally, you can reduce the risk. Training employees in safety procedures and implementing standard operating procedures that reduce the risk of injury are good examples of risk reduction techniques.
4) Implement the Program
Common action steps during this phase are buying insurance, starting loss control programs, and setting aside funds to cover expected retained losses. 5) Evaluate and adjust the program
I should review my risk management plan as my business grows. Make sure that the risk management program keeps up so that my business is adequately protected from risk. While it’s important to insure my business against major business risks,first line of defence should always be risk management. The payoff for active planning and risk management is less risk of disruption to my business. Additional bonuses can include lower insurance premiums, better staff productivity and more credibility in the marketplace.
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors.
In SWOT, strengths and weaknesses are internal factors.
A strength could be:
• Your specialist marketing expertise.
• The new, innovative product or service.
• Location of my business.
• Quality processes and procedures.
• adds value to my product or service.
A weakness could be:
• Lack of marketing expertise.
• Undifferentiated products or services
• Location of your business.
• Poor quality goods or services.
• Damaged reputation.
In SWOT, opportunities...