Risky Ventures: Norm in the Business World
Introduction
Long ago people viewed “risk” as the inevitability of chance which occurred beyond the control of humans. In today’s world the concept of “risk” has turned into riches, as risky ventures have become the norm in the business world. “Risk” therefore applies to decisions that can have a bad or good outcome.
The different types of “risk” can include financial, legal, ethical, information technology, or even human resource since it can exist everywhere and at any time in our lives. When we eat, we encounter the risk of food poisoning, to cross the road we run the risk of being hit by a passing motor car or even when we drive, we can increase the risk of an accident. If no risk is done then, no breakthrough can be expected. Whether it is in your career, financially, or in your business. Once you fail to take a risk then you will suffer the consequences of making significant gains, which means that you run the risk of a possible loss.
What is Risk?
According to Mortimer (2005 p. 45) “risk” is any uncertainty about a future event which might threaten an organization’s ability to accomplish its mission. Which means that it can be the chance of something happening that will have a negative impact on an organization. It is the possibility of suffering a loss that is loss of quality income, loss of profit, loss of success or even loss of life.
It means therefore that change involves “risk”, but once the set program has been attained or has achieved total success “risk” vanishes. It is therefore of great importance that the management of risk be well managed. “Risk management” was engineered into dealing with the possibility that some future event might cause harm. It includes strategies and techniques for recognizing and confronting treats of risk and provided an environment for proactive decision making for the proactive decision making, for the purpose of: * “What can go wrong” * “What will we do” * “How will or can it be
Long ago people viewed “risk” as the inevitability of chance which occurred beyond the control of humans. In today’s world the concept of “risk” has turned into riches, as risky ventures have become the norm in the business world. “Risk” therefore applies to decisions that can have a bad or good outcome.
The different types of “risk” can include financial, legal, ethical, information technology, or even human resource since it can exist everywhere and at any time in our lives. When we eat, we encounter the risk of food poisoning, to cross the road we run the risk of being hit by a passing motor car or even when we drive, we can increase the risk of an accident. If no risk is done then, no breakthrough can be expected. Whether it is in your career, financially, or in your business. Once you fail to take a risk then you will suffer the consequences of making significant gains, which means that you run the risk of a possible loss.
What is Risk?
According to Mortimer (2005 p. 45) “risk” is any uncertainty about a future event which might threaten an organization’s ability to accomplish its mission. Which means that it can be the chance of something happening that will have a negative impact on an organization. It is the possibility of suffering a loss that is loss of quality income, loss of profit, loss of success or even loss of life.
It means therefore that change involves “risk”, but once the set program has been attained or has achieved total success “risk” vanishes. It is therefore of great importance that the management of risk be well managed. “Risk management” was engineered into dealing with the possibility that some future event might cause harm. It includes strategies and techniques for recognizing and confronting treats of risk and provided an environment for proactive decision making for the proactive decision making, for the purpose of: * “What can go wrong” * “What will we do” * “How will or can it be
Bibliography: Al, M. A. (2004). Hanbook of Management 3rd Edition. London : Pearson Education . Bhole, L. (2004). Financial Institutions and Markets 4th Edition. New Delhi, India : Tata McCraw Hill. Mortimer, D., S. Mortimer (2005) Quality and Risk Management. Cambridge University Press, London, England Yusof, Y. (2007). Managing Financial Risk. United Kingdom: Author House .