How to managing risk in business

 Every business whether sole proprietorship, partnership whatever form of business it maybe have an element of risk within and inbound. Remember the higher the risk the higher the return. However,risk is the element that can either result in the profitability or loss of a business. Therefore we will be looking into the various type of risk and its management

1. Strategic risk: This risk has to do with the plan of your business. Remember a strategic plan is the plan that has a span of 5 years and above. Many companies today engage in strategic planning in order to remain in existence.
2. Financial risk: Money (finance) is the life support of the business. Therefore, the source of financing for you business must be deeply scrutinized in order to avoid loss that can drag your business into windup  as a result of bankruptcy.
3. Operational risk: This risk is visible in the day to day operations of your business. As a business oriented person you have to note all operational activities within your territory and the risk associated with it. It may be in term of technology, labour, etc.
4. Compliance risk: Every year the government of any country will always come up with policies which maybe affect the performance of a business function. All government laws,rules and regulations must be adhered and complied with in order to avoid legal battle.
5. Safety risk: In the case of production, your employees needs to be protected from injuries or damages to the bodies as they are a liability to you and your business. For achieving business plan and goal. There is need to effectively and efficiently protect workers/staffs.
6. Reputation risk: Reputation risk is another risk which importance can it be overstretched as the reputation of one's business matter a lot. Avoid the production of sub standard product, avoid using inferior quality for your production, etc in order to manage the reputation risk of your business.

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