Business owners are aware that they have to incur risks in order to run their companies successfully. They must identify the potential threats to their market operations; only then can they find out suitable ways
Business owners are aware that they have to incur risks in order to run their companies successfully. They must identify the potential threats to their market operations; only then can they find out suitable ways to respond and overcome them without any difficulties. If they do not pay attention to threats, they could end up losing a lot of money within a short period of time. This the reason why business owners need to formulate and implement a suitable risk management strategy for protection and business growth.
Michael Saltzstein – How can business owners deal with potential business risks?
Michael Saltzstein is an esteemed business leader from America specializing in global risk management services, strategic planning, formulating financial structures for small businesses, and multi-line claims. He has invaluable knowledge in conducting business negotiations, crisis leadership, and loss control. His clientele consists of many large corporate enterprises and small business owners. He ensures all his clients receive pragmatic and action-oriented solutions to their specific business problems.
Hestates owners need to understand that their businesses are always susceptible to risks. The threats they face can come from both external sources or within their own businesses. They need to take a proactive approach towards tackling these risks head-on. For this, they should formulate and implement an effective risk management strategy. In doing so, they need to keep in mind the following three steps:
- Identifying potential risk
Business owners need to determine potential risks that adversely affect their market operations. These threats may be from external sources like natural disasters, economic slowdown, or changes in tariffs. Moreover, they need to take into account the internal risks affecting their businesses. The use of obsolete equipment, ineffective managerial policies, and unreliable employees can also hamper operations.
- Evaluating risks
Identify potential risks to their businesses is just the first step owners need to take for protecting their company. They then have to evaluate the impact of the risks on their market operations. This involves assessing the loss they are likely to incur from unproductive working hours and an increase in business process costs. Only then can they make a decision on how to tackle these risks and reduce threats.
- Determining how to mitigate the risks
After determining and evaluating business risks, owners need to find ways of tackling them. They normally deal with potential business risks in the following three ways:
- Owners can avoid taking any action against small business risks which will not seriously affect their operations;
- They can change their entire business plans to prevent the potential risks from occurring; and
- Business owners can take necessary control measures to mitigate and limit the impact on these risks.
According to Michael Saltzstein, risks can play havoc on businesses unless their owners take necessary action. These threats can be changes in government policies, natural calamities, recessions, or the introduction of new tariffs. Even the inability to upgrade equipment, inefficient managerial processes, and unreliable employees can have the same effect. Fortunately, there are ways in which business owners can deal with such risks with plans to implement control measures to mitigate them.