RISK MANAGEMENT AS AN ENTREPRENEUR - PUTERI HANNAH (WEEK 4)

                                                                    Figure 1 Types of Risk

Risk management refers to the process of making identifications, accessing and overcoming threats and uncertainties that can affect an organisation. It involves analysing risks’ likelihood and impact, developing strategies to minimise harm and monitoring measures’ effectiveness (What Is Risk Management & Why Is It Important? | HBS Online, 2023). A good concept of risk management consists of achievable goals such as to protect the organisations’ assets, which includes its people, property and profits. 

As an entrepreneur, one of the main ways to manage risks is by having a risk management plan which is a very systematic approach in minimising impacts in a business. A risk management plan should consist of ways one takes to identify, assess and manage risks including the right people and resources involved. By having a well-thought-out risk management plan in place, you can proactively address potential issues before they become major problems and ensure the long-term success of your business (Team & Team, 2023).

Next, as an entrepreneur, one must be able to identify potential risk factors. Some of the ways to do this is by looking back at historical data of the time to identify potential risk factors, you can create a comprehensive risk management, conducting market research and seeking out advice from industrial experts. By taement plan that addresses the most significant risks facing your business (Team & Team, 2023).

In conclusion, risk management is not only about eliminating risks but to take calculated risks. A well-managed risk is a stepping stone to entrepreneurship success. 

References:

What is risk management & why is it important? | HBS Online. (2023, October 24).

Business Insights Blog. https://online.hbs.edu/blog/post/risk-management

Team, A., & Team, A. (2023, February 1). How to manage risk as an entrepreneur. AIContentfy. https://aicontentfy.com/en/blog/how-to-manage-risk-as-entrepreneur

Houston, M. (2023, January 13). Risk management for your business: What you need to know. Forbes. https://www.forbes.com/sites/melissahouston/2023/01/11/risk-management-for-your-business-what-you-need-to-know/?sh=5bc1b6c24a04