Risk Management - WENDY KOH XIN HUI (TP077721)
Do you understand the good concepts and tools for risk management? How to manage risk as an entrepreneur?
Indeed, project management inherently involves several risks including financial risks, marketing risks, operational risks, and business risks. These risks can have positive and negative impacts on the organization. Undoubtedly, it will face technical challenges, operational issues, performance problems, scope changes, and resource constraints. To mitigate the damage of the risks, risk management has become an indispensable tool, particularly in the business field.
Risk management is a systematic process of identifying, assessing, and preventing uncertainties, issues, and obstacles that might affect the organization. Put simply, it is implemented in organizations for analyzing the risks and maintaining the development of the organization. The proper ways of risk management can foster business growth and expand the market of the organization worldwide.
To manage these risks, good concepts and tools for risk management become essential. Effective ways of risk management include identifying the risk, analyzing and overseeing risks, setting priorities for risks, embracing risks, and setting up risk monitoring. Risk cannot be eliminated but minimized. The risk register, the fundamental risk management tool is utilized as it can provide space to describe, and explain the potential impact, give suggestions, and prioritize risks. SWOT (strengths, weaknesses, opportunities, and threats) analysis is the classical tools that provide assessment tools to evaluate the competitive position of companies and develop strategic planning.
Developing a risk management plan is one of the ways to manage risk as an entrepreneur. In entrepreneurship, risk becomes common and acceptable. To manage risk, understanding types of the risk and their potential impacts is crucial. A good risk management plan manages to identify, access and manage risks. It is a vital tool in preventing the risks before the risks become a major issue and problems in the business. Protecting intellectual property is important to mitigate risks. Intellectual properties include copyrights, trademarks, patents, industrial designs, and trade secrets. Without proper protections, these intellectual properties might be stolen and used illegally by others which will cause the organization approach to risks.
References:
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Malsam, W. (2024, January 24). The best risk management Tools & Techniques for PM pros. ProjectManager. https://www.projectmanager.com/blog/risk-management-tools-techniques
Moskowitz, D. (2023, May 4). Top ways to manage business risks. Investopedia. https://www.investopedia.com/articles/personal-finance/072315/top-ways-manage-business-risks.asp
Asana, T. (2024, January 19). 7 Common project risks and how to Prevent them [2024] • Asana. Asana. https://asana.com/resources/project-risks
What is risk management & why is it important? | HBS Online. (2023, October 24). Business Insights Blog. https://online.hbs.edu/blog/post/risk-management
Talmage-Rostron, M. (2024, February 6). Types & Importance of Risk taking in Entrepreneurship 2024. Nexford University. https://www.nexford.edu/insights/risk-taking-in-entrepreneurship
Paliienko, S. (n.d.). Introduction to Risk Management: concept, types, management Strategies. Five Jars. https://fivejars.com/blog/introduction-risk-management-concept-types-management-strategies#Negativevs.positiverisks
Kenton, W. (2023, October 30). SWOT analysis: How to with table and example. Investopedia. https://www.investopedia.com/terms/s/swot.asp
What is Intellectual Property (IP)? (n.d.). https://www.wipo.int/about-ip/en/
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