Risks in international trade


Just as there are reasons to get into the international market, and benefit from global markets, there are also risks involved in positioning companies in certain countries. Each country may have its potential; it also has its woes that are associated with doing business with major companies. Some of rogue countries may have all the natural minerals than the risks involved in doing business in these countries exceed the benefits. Some of the risks in international trade are:

(1) Strategic Risk

(2) Operational risk

(3) Political Risk

(4) Country Risk

(5) Technological Risk

(6) Environmental Risk

(7) Economic Risk

(8) Financial Risk

(9) Terrorism Risk

Strategic Risk: The ability of companies to make strategic decision in order to respond to the forces that are at risk. These forces also affect the company’s competitiveness. Porter defines them as :. The threat of new entrants in the industry, the threat of substitute products and services, intensity of competition in the industry, bargaining power of suppliers and bargaining power of consumers

Operational risk: This is caused by the assets and resources that help the day-to-day activities. Breakdown machineries, supply and demand of resources and products, the lack of goods and services, lack of complete logistic and inventory will lead to inefficiency in production. By controlling costs, unnecessary waste decreases, and process improvement can increase lead-time, reduce variability and promote efficiency in the internationalization of

Political Risk :. The political action and instability can make it difficult for companies to operate efficiently in these countries due to negative publicity and the impact created by individuals in the top of government. Businesses can not effectively operate in its full capacity in order to maximize profits in such political turmoil unstable country. New and hostile government can change the friendly one, and hence expropriate foreign assets

Country Risk :. The culture or country can create instability risks may make it difficult for multinational companies to operate safely, effectively and efficiently. Some of the country risk comes from the policies of governments’ economic, security aspects, and political conditions. Solving one of these problems without all the problems (combined) together will not be enough to reduce the country risk

Technical Risk :. Lack of security in electronic transactions, the cost of developing new technologies, and the fact that this new technology can fail, and when all these are combined with the outdated current technology, may create dangerous effects of doing business in the international arena

Environmental Risk :. Air, water, and environmental pollution can affect the health of citizens and lead to public outcry citizens. These problems can also lead to damaging the reputation of the companies doing business in the field

Economic Risk :. This comes from the inability of the country to meet its financial obligations. Changes in foreign investment and / or national policy or fiscal policy. Effect of exchange rate and interest rates make it difficult to conduct international trade

Financial Risk :. This area has the effect of exchange rates, the flexibility of the government to allow companies to repatriate profits or funds outside the country. Devaluation and inflation will also affect the company’s ability to operate efficiently ability and still be stable. Most countries make it difficult for foreign companies to repatriate funds thus forcing these companies to invest money in less optimal level. Sometimes there are business assets that were confiscated and contributing to financial losses

Terrorism Risk :. These are attacks that may be caused by a lack of hope; trust; differences in culture and religion, philosophy, and / or just hate the corporate citizens of the countries concerned. It leads to a potential hostile attitudes vandalism foreign companies and / or kidnapping of employers and employees. Such frustrating situations make it difficult to operate in these countries.

Although the benefits of international trade of risks, companies should take the risk in each country and also intellectual, red tape and corruption, human limitations resources and limitations in the analysis of ownership, in order to take into account all the risks that comes before venturing into any of the countries.


Construction Risk Management – Three Major Reasons Why it is necessary


Most companies are now at risk management in order to make the best management decisions. In fact, these services are popular in all business sectors. But what people often forget is that risk management is not just about making management decisions such as product innovation and pricing. In fact, it includes a lot more content, which is why it is suitable for a variety of industries where it is not so popular. For example, there is a dire need for it in the construction industry. One might think that construction companies do not require a lot of management decision making. However, it is the industry where the risk is highest and it is important to manage it.

risk in this industry is divided three ways. These are also the three main reasons the construction risk is extremely important

Planning -. This is an important part of any business project. In fact, it is particularly important in the construction industry. This is due to perform safety demand, solely based on the organization. If there is any loophole in programs or step is missed out, the final product can be very dangerous. Also, budget and time must be managed perfectly. This is why most people considering hiring construction risk management professionals

Precautions Health workers -. We conduct business tasks, you not only have to worry about the product and profit but also for employees. Employees are at high risk projects. This is because these people may have to work in unsafe conditions. For this, you need to take security measures for them. To make sure that there will not be any accidents, it is recommended to hire a consultant to address the risks

Safety provided by the final product -. This is a big reason for the construction risk is important. It needs to be sure that the final products provided by the workplace is safe. For example, if a building has been constructed with the finest materials, it can be very dangerous to live in it. The main focus should be to ensure that all safety measures are taken. The best advice can be provided by professionals who are used to dealing with risk.

Therefore, when running such a company must make sure that you are efficient to deal with all the risks by hiring the right professionals.


The Definition of Risk


Risk management is a management practice that helps identify risks in order to minimize loss. It is a logical approach to identifying, analyzing, solving and continuous monitoring of risk in the organization. Exit does everything possible to prevent the institution works well and achieve their plans. It is something that can harm the company’s employees, assets and customers. Risk management is a process used in both private and public institutions, in different areas of operations, finance, etc.

Risk is a standard process that involves several steps. It begins as a first step, by identifying risk. The next step is to identify them, then solve them. The final step is the continuous monitoring of risk in the organization.

first step, identify risks, need to be considered in the organization’s business context. Depending on the nature of the business, the specific risks that may occur. That is why, when working to identify those professionals need to take into account the business context in which management processes occur. The probability and the frequency of appearance of risk should be evaluated. Also, what effect it has on the organization needs to be determined.

The next step is to analyze. This is also called risk assessment. Risks need to assess both qualitative and quantitative perspective. Now that they have been identified, it needs to be decided which risks are most likely to occur, and also which ones will have the most serious consequences. This would be dangerous for the organization. These risks need to be prioritized also in line with the costs that they may cause to the organization. Unsafe must be defined in accordance with the severity of their impact. The levels are high, medium and low. Broad means adverse effects on the structure, so measures must be taken in time to solve the problem. Moderate level means less devastating consequences, but low risk suggests that may not be important to deal with. In this case, management needs to decide whether it is worth to allocate time and money resources to resolve the situation or not.

the risk is high risk should be treated first, but the ones with lower probability of occurrence and less impact should be treated next. Companies need risk management plan information, just as solutions. Risk Management Consultants can help you create this plan and the best solutions to deal with any problems you may face.

last step needs to be constantly observed. The institution, not risk not being the same. General changes in the business environment, regulatory changes, business changes, so new problems can appear, while others will go away. The strategies need to be constantly reviewed and adapted to new conditions.


Risk Management Technology


What is the basic word means ‘risk’? Risk means daring to take opportunities and some challenges. The methods that help you manage the risks generated by risk management. Risk access risk and develop a new system in order to deal with the problem.

The internet users can only protected bona Merchant Account Provider from all types of hoaxes and duperies. They can provide you with the actual management technology. Although Account Provider allows credit reference and work as safe as it is still possible that you are a merchant so you have to protect ourselves against the potential dangers and fake documents as well.

If you want to be safe from all types of deprivations the appropriate and complete list of all your. For this merchant to do some research and surveys. One more thing to keep in mind to always analyze all your losses both in terms of cash cost and size You should also describe how the event and consistency.

Markets have a real and crucial benefit of ordinary people. The market is so fine knowledge of the various factors that with people. Definitely there knowledge conglomerate and deep. They know really how they can respond to these problems. Markets monitor all frequencies public loss of financial means. These markets have become unendurable, and it’s really amazing. Markets feel glad about teaching lessons to the people over and over again and where the money works. Markets are in demand only when people want business to go on. The market is the intersection of the public. The more the participation of the people, more trade and more market. If the common man?

Always keep in mind that the market is pitiless teacher. This is what makes money for them. The scope and breadth of knowledge is wide and goes to infinity. The knowledge is much more than a knowledge of finance, accounting, business, organization or individual property that has monetary value. People People understand the behavior of the market and the factors that make the market tranquilize and what factors make the market bumpy. To know the behavior of the market in the right way you need to keep in view the various frequencies that occurred in the past and present.

Give time to learn the fundamental principles of the market in order to protect herself from several frauds that are happening with ordinary people.


Risk Management – 10 Tips on How to Minimise risk


Risk is administered in any business and it can be damaging to the business and even threatens its survival. It is therefore necessary to be aware of different risks, to understand its potential impact on the business and know how to manage it effectively. This article gives some tips on how to reduce the risk

  1. The product and service offering to business must change with customer preferences. Too much trust in one product (or any products) should also be avoided.
  2. It is good to have other supply chains (including suppliers and distribution channels). Good relationships have to be built with all relevant parties.
  3. Bonds help companies to grow. However, it can be dangerous to have too much debt and it should be limited to serviceable levels.
  4. Confidence in one or a small number of customers can be very risky and when possible it should be avoided.
  5. Proper budgets need to do. Cash flow planning is one area that can highlight potential risks and pro-active then you can take.
  6. Financial management should constantly do. Ratio analysis will show where the problem area (eg ROI). It also gives an indication of liquidity and solvency risks.
  7. It is advisable to protect the company as far as possible against factors that are not under the control of the company. This applies particularly to international trade and unexpected currency fluctuations.
  8. Business Growth should be kept sustainable. Too much growth can seriously drain the resources and can even lead to bankruptcy. Systems and skills also need to keep up with growth.
  9. Proper standards of production should be followed. Products that are not standard can damage the image of the company or even destroy it as a whole.
  10. People are the core of any business and they should be treated as such. People after trading for several reasons. Because of the sensitive information must be protected by confidentiality agreements and restraint of trade agreements.

Copyright © 2008 – Wim Venter


The Important Health Care Team: Risk management and quality improvement


Why do we need both risk management and quality improvement efforts in health care facilities found A simple comparison of the words “risk” and “quality” could shed some light on this subject

“Risk” means something bad :. Fall, slip or accident. This signify all danger, threats, or jeopardies. By replacing the word “risk” in this bad event, we have a “drop management,” “accident management,” or “crisis management.” Scary things need to be controlled in order to happen again.

Quality, however, is good. It shows excellence, superiority, the best of the best. Residents of long-term care facility or hospital patients want “quality” of life, “quality care”, “food quality” and “quality service.” Replacing the term “quality” gives us “life improvement”, “care improvement,” or “service improvement.” Good things can get better, so let’s add them!

Even more interesting is the rage of the terms “risk” and “quality improvement.” “Risk improvement” is an oxymoron. What would improve the risk or threat? While quality management means keeping quality of the status quo: It’s good enough, just to manage it. To simplify the terms, risk management, control the bad so it does not happen again, quality improvement, add good to do it better.

In the healthcare environment, risk management focuses on the threats or harmful situations through the identification, analysis, reduction, and prevention. Quality improvement programs is about performance and ways to improve performance based on standards that are constantly reviewed and enhanced. Both are necessary in the health situation. Both programs work cooperatively to create a safe environment and a high standard of patient care.

Similarities and differences in risk management and quality improvement play an important role in maintaining a clean, safe, and healthy facility. Both have different objectives, scope and methods, but when you look at the activities both in complex healthcare risk management and quality improvement are actually more similar than different. For each joint program to prevent harmful occurrences, the interaction of the two realize the greatest benefit to the facility in terms of patient safety and satisfaction, prevent patient-related injuries, cost effective use of resources and integrated management and clinical operations.

By integrating quality improvement of risk management, all the game-from management to doctors to employees for family members-work together to improve the quality of care and avoid litigation from threats facility environment. Risks, such as dangerous waterfalls, malnutrition and dehydration, the adverse drug reactions, pressure ulcers, wandering and elopement, insufficient evidence or failure to take treatment and overuse / abuse of psychotropic medications, are inevitable even in the best conditions. Such issues are often complex with under staffing, poor quality of service, and false or incomplete information to and from the acute care environment.

To address these issues-such as staffing, care and communication-that can be improved, which will establish a culture that keeps employees responsible and dedicated to continually improving standards, operational and quality of service. Staff also must have proper reporting and feedback process and specific instructions on handling emergencies and investigating the event. In fact, all the facilities will be dedicated to activities in place for a safe and healthy environment for its patients or residents.

Quite simply, manage risk and improve the quality of working hand-in-hand to provide patients and residents of health care facilities the safest, cleanest, and finally the best environment. Both risk management and quality improvement efforts are equally important and both must be a high priority Every health care facility. Having these programs in place shows that patients, residents, families, staff and the community that the organization is committed to their missions and values. Thus, if and when an incident occurs, the organization can manage it most effectively with the best practices of both risk management and quality improvement.


Risk and Project Risk


Whenever we launch a project, the risk is inevitable, where projects make -. And when you change, it introduces uncertainty and risk

A risk is defined as uncertainty event should it occur, will affect the project meets its objectives. These conflicting events can be positive, but it would be called chance, when negative it is called the threat. Both have a common thread of uncertainty.

When the implementation of risk management in order to reduce the likelihood and impact of threats and to increase the likelihood of opportunities and / or positive effects. It is good to consider the risk of “an event that can be not occur in the future, but if it occurs it will affect the objectives of the project.”

The Business Case will contain information, the project cost and risk to the business benefits. Put simply, the aggregate project risk is worth the benefit. If this is so, then the Business Case still viable, desirable and achievable. This fact alone highlights the importance of proper risk management. Whenever identifies new risk, existing risk changes its properties, the issue is identified, or at critical control points as end assessment stage – Business Case should check the feasibility – and this includes the aggregated value of all the risks.

Effective risk management involves clearly defining each risk and evaluate it in terms of likelihood and impact and control by taking appropriate action and ensure such actions have, and continue to have, the desired effect.

Before entering information on the risks, the task will be to determine the risk management strategy that describes how risk management will be both used and implemented within the project. The risk should include, among other factors:

– especially tools and methods to use

– responsible for risk management measures

– procedures for risk management, such as the identification, evaluation, countermeasures / features, implementation and communication.

– scales to be used to standardize and evaluate the likelihood and impact

– reporting and timing risk activities, such as at the end of each work

– risk categories as to be defined, an application, the definition of risk as the risk turn indicators.

– for unpredictable or direct action, should also be approved risk budget. This budget is used to pay for any such actions risk should they be needed.

– when management by exception, risk tolerance or “risk-taking” should be agreed between the promoters and project board

It is worth discussing this last bullet in detail:


Tolerance tolerance is usually time and cost of the project can be “used” to allow for small deviations and estimate errors. Should at any point, the project or stage of wondering exceed this tolerance, the project will escalate the situation to the next level of management -. Who have to decide what to do next

However, tolerance is used may be risk tolerance. In such a case, the debate should be between the project board and project manager, about how much risk can be tolerated (“risk-taking”). Factors such as certain effects of the risk increases above a certain value, or how likely increase in the same way. There could be a risk of a certain category -. Such as those affecting the corporate image, which may be progressive triggers

The Risk Register should be created early in the project, and is used to capture all the details and status of each identified risk. Project Manager is responsible for ensuring that risks are managed properly and there will be a need for risk owners for all the risks and these owners can others involved in the project. They should be selected as the best person to keep an eye on risk. Owners can be the one who needs to perform a risk assessment activities, or to act as a “forward scout” to announce the status of the risk back to the project

The first step in the risk management process is to identify the risk, and this is usually made within risk workshop. Other useful sources of potential risk identification, is to review the lessons of previous projects. Even more sources are structural risk checklists or use industry-wide checklist or tables

Many people make the mistake of mentioning the risk as “there is a risk that the project will come later.” – – But this is wrong, because the statement is not to mention the risk itself, but its impact. This is where the “Fish-bone” or Ishikawa Diagrams can be useful in separating the risk, there is a cause and effect (the effects)

It is good to note that the source of risk is called risk cause ( potential trigger points for each risk) is the risk event describes the area of ​​uncertainty, and the risk impact that describes risk impact on project objectives.

The next step is to evaluate and assess each risk, and there are various methods of evaluation that can be used are:

Probability trees. These are graphical representations of possible events shown risks related rectangles, each with probability and impact. When they join, the aggregated value of project risks can be determined. These decisions help to determine possible outcomes, and ensure appropriate actions can be implemented.

expected value. This technology multiplies the cost of risk influenced by the probability of the risk occurring. For example, if the cost of risk was £ 10,000 and the odds as 40%, then the expected value would be £ 4000. Summing all this together will give the expected cumulative probability the expected value of the project. This is useful to determine the potential risk budget.

Pareto publications. This is often called the 80/20 rule, from the observation that 20% of the risk will have the most impact on the project and allows management to focus their attention on managing and controlling risks. It gives the best “Risk profitability”

probability impact grid. This is a board with a vertical axis scaled the probability and the horizontal axis scaled in influence. Suitable scales are determined, typically a 10% chance that very low through to very high between 70 to 90% of capacity. The effect of the measure is generally from very low to very high. The grid is used to provide estimates of the severity of the risk and a risk to be arranged so that management efforts can be given priority.

The summary risk. This again is a grid of potential resistance effects, but instead measure the severity of the risk (probability times effect), it plots each risk speak much as scatter diagram so that the spread and severity of the risk can be directly seen. For example, there is a risk that highly influential and likely would be seen as a serious threat and this will take the appropriate steps or measures against determined.

The next step is to organize the appropriate response for both threats and opportunities. There are many ways to describe such actions, but the following are typically used:

for threats

avoided. Action is planned for the project to do something different, so the threat can either no longer affect the project and / or its probability is zero.

reduced. Action is expected to either reduce the likelihood of the risk occurring and / or to reduce the impact if it should occur.

Alternate (often called contingency). Surgery but only implemented should be related to the risk out.

Transfer. The action is expected to reduce the financial impact of the threat. Usually, the function of any security, or the relevant provisions in the contract so that the other party is financially painful.

Accept. This is a “take no action” option. The threat should still be constantly monitored to ensure that it is acceptable. This function is often chosen because the risk to potential and / or low impact or cost and effort for any actions outweigh the seriousness of the threat

threat or opportunity :.

Share. Often within contracts with third parties, work / profit formula is approved, the threat or opportunity presented


Exploit. To take action to ensure that the opportunity will happen and that the positive effects to be realized.

Extra. Take the initiative actions either increase the probability and / or impact of the event.

Reject. Decision to exploit or enhance opportunities.

All of the above actions are taken and recorded in the risk register, and project or phase level programs have the above activities and resources to.

It is useful to hide the presence of each risk. This is the time frame of the risk events of the present. This is useful to concentrate resources on operational risk in the near future. But it is also useful to determine each risk event will occur, as this will affect the severity of the impact.

Allan projects, new risks can be identified, and existing risks can change their position – in this risk management should therefore be seen as continuing operations in the entire project. It should also be borne in mind that when issues arise, they may in itself affect the existing risks or cause new risks.

At the end of each stage of the project, the total risk situation needs to be calculated, and used as part of the data for management to make an informed decision about whether to proceed with the project or not. At the end of the project, as part of the closure, any outstanding risks that would affect the life of the final product should find a new owner, so as to continue to be managed and controlled.


Secret Risk Management buzzwords Show


Welcome to the world of risk management, or what is sometimes now called enterprise risk management or ERM.

For anyone looking for a reference to the ideas used in the past or recently designated risk analyst, you will see elements of business risk in some of the terms below. You may have been part of

  1. Contingency planning
  2. due diligence,
  3. acquisition review,
  4. Merger and acquisition review,
  5. The operative assessment
  6. A strategic facilitated top management meeting in this approach, or
  7. Risk.

Using a common source for the definition of business Dictionary, think of these ideas

Buy planning coordinates the activities of the personnel involved in the acquisition of property or the deposit to ensure timely and cost effective purchases .

Contingency planning is action to ensure proper and immediate follow-up steps will be taken by the management and staff for emergencies. Its main objective is to ensure:

(1) containment of damage or injury, or loss of, employees and assets, and

(2) the continuity of the main activities of the organization.

Due diligence is a measure of prudence, responsibility and diligence expected from, and normally exercised by, a reasonable and prudent person in the circumstances.

Operational assessment is the evaluation of the efficiency and cost-effectiveness of the system through a test aimed at:

(1) analysis of shortcomings, gaps, areas of risk,

(2) Measurement of adequate production and

(3) assessment of reliability in operation.

Risk management includes policies, procedures and practices involved in the identification, analysis, evaluation, monitoring and avoiding, minimizing or elimination of unacceptable risk. Businesses can use risk assumption, risk getting, risk retention, risk transfer, or other technology (or combination of methods) in the proper management of future events.

Often new expert operation has to get familiar with the buzzwords and industry jargon as one of its first steps. If you are a new business risk management expert, or risk management expert, you will see that these terms regularly.


The principles of risk


Every project manager and business leader needs to be aware of the practices and principles of risk management. Understanding how to identify and treat risk organization, program or project can save unnecessary difficulties later, and will prepare managers and team members for any unavoidable incidence or issues.

The OGC M_o_R (Risk Management) framework identifies twelve principles designed “… to be prescriptive but [to] provide supportive guidance to enable organizations to develop their own policies, processes, procedures and plan. ”

Organization chart context

A fundamental principle of all general management methods, including PRINCE2 and MSP plus M_o_R, is that all organizations are different. Project managers, program managers and risk managers need to consider the specific context of the Agency to ensure accurate analysis of the risks and appropriate methods of treatment risks.

The term “organizational context” includes political, economic, social, technological, legal and environmental backgrounds institution.

stakeholder engagement

It is easy for managers to become inward and forget that stakeholders are also major contributors to daily business, short-term projects and business-wide change program.

Understanding the role of individual stakeholders and manage stakeholders is critical to success. Interested parties should, where appropriate, be aware of the risks a project or program. Within the context and stakeholder engagement, “appropriate” Concerns: identity and role of stakeholders, the level of influence the stakeholder has over and outside the organization, the level of investment that stakeholders have in the planning and preparation, the likelihood and potential impact of risks.

Organisational skills goals

Risks are only associated with the activities and objectives of the organization. Rain is a negative risk for a picnic, a positive risk for drought-ridden farmland and non-stop passenger submarine.

It is important that the person responsible for risk management (whether business leader, project / program manager or expert risk manager) understands the objectives of the organization, in order to ensure a tailored approach.

M_o_R approach

processes, policies, strategies and plans within the framework M_o_R provide general guidelines and templates within a particular company. These guidelines are based on experience and research of professional risk managers from various organizations and management backgrounds. Following best practices ensures that individuals involved in the management of risks associated with the activities of an organization are able to learn from mistakes, experiments and lessons of others.


accurately and clearly on behalf of the data and dissemination of this information to the appropriate employees, managers and stakeholders, is critical to successful risk management. The M_o_R methodology provides standard templates and tested structures to control the frequency, content and participants in risk communication.

Roles and Responsibilities

Fundamentals of risk management best practices is a clear definition of the roles and responsibilities of risk management. Individual functions and responsibilities will be transparent, both inside and outside the agency. This is important both in terms of organization of governance, and to ensure that all the necessary responsibilities covered by relevant persons.

Support structure

framework is a provision within the enterprise standard guidelines, information, training and financing for individuals manage risks that may arise in any particular area or project.

This may include risk management team, a standard risk management approach and best practice guidelines for reporting and review of organizational risk.

alarm indicators

Risk Identification is an essential first step to remove or reduce risk. In some cases, however, it is not possible to remove the risks beforehand. Early warnings are pre-defined and quantitative triggers that alert individuals responsible for risk management of risk is imminent. This makes the most thorough and prepared approach to handling the situation.

Review cycle

Related to the need for early warnings audit cycle. This confirms the regular review of the identified risks and ensures that risk management is vulnerable to new threats, and the success of the current policy.

overcome obstacles in M_o_R

Any successful strategy requires thoughtful consideration of possible barriers to implementation. Common issues include:

o come roles, responsibilities, accountabilities and ownership

o appropriate budget for embedding approach and implementation activities

o adequate and accessible training tools and techniques

or risk orientation, induction and training process

o regular review M_o_R approach (including all of the above issues)

supportive culture

Risk basis for many different areas and aspects of the institution. A supportive culture is essential to ensure that all risk management responsibilities feels confident raise, discuss and manage risk. A supportive risk management culture will also include an assessment of risk and reward skills to the appropriate individuals.

continual improvement

The growing organization, nothing stands still. An effective risk management strategy involves the ability to evaluate and improve. At a practical level, this will require the nomination of a person or group of persons responsible for risk management policies and procedures are up-to-date, as well as the establishment of regular issues of risk management agency approach.


Risk Management Method


How many times have you regretted not taking simple precautions could have prevented significant damage or discomfort in your business? Whether it is to ensure that anti-virus software is updated or fire is in place, you most businesses need to protect themselves against unpleasant situation. Small wonder, the management of risk is a scientific and highly critical business processes.

Risk is defined as the probability of something happening that will affect your business. It is due almost entirely of people, processes, procedures and natural events. When there is a possibility of loss, destruction, damage or inconvenience, it is termed as risk.

Risk Management is a continuous process of planning risk. It includes a detailed study of what you can do when something goes wrong, and understanding whether you have taken enough carefully or should do more to prevent harm.

The following steps will help you manage risk in your business.

Identify risks: It’s time to wake up and smell the coffee. Start by looking at all likely sources of risk. Think of it as a “what if” analysis. Ask employees about the main risks they face in their functional areas, and what corrective measures in practice. You can do this through brainstorming sessions, instant review or audit, conducting a SWOT analysis and so on. This allows you to assess the level of preparedness of the company to manage risks. Books such as “risk management process: Business strategy and tactics.” And “audit risk management process” from having a lot of information on this topic

Identify: This is one of the main steps in the risk management process. Having identified the risks, you need to evaluate and prioritize them. Risks that affect the ability to continue the business, financial well-being or the image of the company, are naturally the most critical. Others like unexpected interest rate change or enter in your bank will certainly have an impact, but still manageable

Reducing risks :. Although you can not completely avoid the risks in your business, you can certainly reduce it. Therefore, it is wise to appropriate risk-limiting measures. While you could argue that more likely, greater profitability, it is important to ensure that you take only calculated risks in the business

Decide on a plan :. Since many technical solutions are available, you need to choose the appropriate risk management process and implement it thoroughly. Choosing an appropriate strategy for your business to take into account the cost and time required for implementation and the resultant benefit of

Check program :. Risk your process has to be constantly reviewed to ensure that it serves the desired goals. . Set aside a budget for periodic updates

Creating awareness: This is possibly the most important yet neglected part of the risk management process. There is no use in having an elaborate plan, if no one knows about it. Ensure that there is adequate communication with staff about the procedures to be followed in a situation of risk. This is especially important in times of disaster, like an earthquake or fire.

The risk management process is an ongoing one and will be in sync with the business’ life cycle phone. All successful companies have a risk management program in place for eventualities ranging from natural disasters to security threats. Make sure your company is well prepared to deal with any untoward situation.