Tag: Taking Calculated Risks

Taking calculated risks with BusinessRiskTV

Who or what blocks intelligent risk-taking within a business?

Risk managers often become scapegoats!

Intelligent Risk-Taking: Friend or Foe of Effective Risk Management?

In the dynamic world of business, calculated risks are the lifeblood of innovation and growth. Yet, a robust risk management (RM) methodology forms the cornerstone of sustainable success. This begs the question: is risk management inherently opposed to intelligent risk-taking, or are there other culprits hindering strategic growth? This article delves into this complex relationship, analysing recent events like BlackRock’s ESG shift and Lloyd’s bank’s RM personnel redundancies to shed light on the true barriers to intelligent risk-taking.

The Balancing Act: RM vs. Growth

A well-defined RM methodology identifies potential threats, assesses their impact, and implements mitigation strategies. This proactive approach safeguards the organisation from unforeseen circumstances. However, overly stringent risk frameworks can stifle innovation. Fear of failure can paralyse decision-making, hindering the exploration of new ventures that may hold significant rewards. BlackRock’s recent partial withdrawal from rigid ESG (environmental, social, and governance) principles exemplifies this tension. BlackRock CEO Larry Fink acknowledged the need for a balance between ESG considerations and financial returns, suggesting overly restrictive ESG frameworks might inhibit investment opportunities [1].

The Culprits: Risk Owners or Risk Management?

The burden of promoting intelligent risk-taking shouldn’t solely fall on RM professionals. Risk owners – individuals accountable for specific risks – and senior management play a vital role. Risk owners might lack the necessary risk assessment skills, leading to a passive approach towards risk management. Similarly, senior management, preoccupied with short-term goals, may prioritise risk avoidance over calculated risks aligned with long-term strategy.

City A.M.’s report of Lloyd’s bank laying off RM personnel in the UK suggests a potential disconnect between RM practices and business strategy [2]. Here, the issue might lie in inadequate communication or a misalignment of risk appetite with the organisation’s goals. Layoffs may indicate a need for cultural change within the bank, promoting a risk-aware yet growth-oriented mindset.

The Role of Effective Risk Management

Effective RM methodologies are not inherently opposed to intelligent risk-taking. In fact, they can be powerful tools for promoting calculated risks:

  • Risk Identification: A comprehensive risk assessment identifies not only threats but also opportunities. Anticipating future trends helps identify potential areas for strategic growth.
  • Risk Prioritisation: By prioritising risks based on their likelihood and impact, resources can be strategically allocated. This allows for calculated risk-taking in areas with high potential rewards and lower risks.
  • Risk Mitigation Strategies: Developing effective mitigation plans minimises the downsides of pursuing strategic risks. This allows for bolder exploration while safeguarding core business operations.
  • Risk Appetite Definition: Setting clear risk tolerance levels empowers employees to make informed decisions within acceptable boundaries. This fosters a culture of calculated risk-taking while ensuring sound judgment.
  • Continuous Monitoring and Review: Regularly reviewing risks and RM strategies ensures adaptability. This allows for course correction and promotes taking advantage of favourable market conditions.

BlackRock’s ESG shift offers a valuable lesson: overly restrictive RM frameworks can stifle growth. Conversely, Lloyd’s bank’s layoffs suggest potential misalignment between risk management and business strategy.

Here are 9 ways to ensure a holistic RM methodology supports business strategy and goals:

  1. Integrate RM into Business Strategy: Embed RM principles at all organisational levels, ensuring alignment with strategic objectives.
  2. Foster a Risk-Aware Culture: Encourage open communication about risk at all levels, promoting a culture of calculated risk-taking.
  3. Empower Risk Owners: Equip risk owners with the necessary skills to effectively assess and manage risks.
  4. Define Clear Risk Appetite: Set clear risk tolerance levels to provide a framework for informed decision-making.
  5. Prioritise Risk Management: Allocate adequate resources to ensure a robust and adaptable RM programme.
  6. Promote Communication: Foster open dialogue between risk owners, RM professionals, and senior management.
  7. Invest in Risk Management Tools: Utilise data-driven risk assessment tools to support informed decision-making.
  8. Regular Review and Updates: Regularly review risk assessments and RM processes to ensure continuous improvement.
  9. Celebrate Calculated Risk-Taking: Acknowledge and reward successful ventures that embrace calculated risks.

By adopting these strategies, organisations can cultivate a balance between risk management and intelligent risk-taking, driving innovation and sustainable growth. Remember, effective risk management isn’t about eliminating risk entirely; it’s about embracing calculated risks for a prosperous future.

References:

  • (1) BlackRock’s recent withdrawal from ESG principles can be referenced from news articles or financial publications.
  • (2) The Lloyd’s bank layoffs can be referenced from City A.M.’s report:
  • Lloyds Bank is cutting jobs in risk management as it sees risk management principles and practices and methodology as being a block to its transformation progress. The group’s chief risk officer Stephen Shelley said in a memo last month that it was “resetting our approach to risk and controls” following an internal review. Shelley noted that two-thirds of Lloyds’ executives thought risk management was impeding progress, while less than half of its workforce believed “intelligent risk-taking” was encouraged. He said Lloyds’ “initial focus is on non-financial risks” and a new model would allow it to “move at greater pace” on its group strategy. “We know people are frustrated by time-consuming processes and ingrained ways of working that impede our ability to be competitive and leave us lagging behind our peers,” Shelley added. The Financial Times first reported the news. A person familiar with the matter told City A.M. that the restructuring would see around 175 permanent roles at risk of redundancy, including 153 in the risk unit. However, the person added that the lender expected to create 130 vacancies focused on specialist risk and technical expertise. Some 3,600 people currently work in Lloyds’ risk division. Will loosening its risk controls “could potentially have catastrophic consequences for the future of the bank”. In this case, there are around 45 role reductions, after new roles being created are factored in.” Lloyds, which has around 60,000 total employees, launched a plan in February 2022 to invest £4bn over the next five years to diversify away from interest rate-sensitive income streams like mortgages and become a “digital leader”.
  • Are risk management principles practices and methodology a block to corporate progression?

Get help to protect and grow your business

Find out more

Subscribe for free business risk alerts and risk reviews

Enterprise Risk Management Magazine
Better Business Protection Faster Business Growth

Connect with us

Read more business risk management articles

Connect with us

 

Is it riskier to stick with what you have or make progress towards a better business?

Business Risks: Formation & Success

Subscribe to our newsletter on business risks management

sign up for free newsletter or follow us via your favourite social media account

Starting a business is a bold venture that requires careful consideration of the risks involved. Whether you are an aspiring entrepreneur or a small business owner looking to grow, understanding the potential risks is crucial. In this post, we will explore the risks associated with forming and running a business. We will delve into the three biggest risks faced by small businesses and discuss what you should avoid to achieve success. So, let’s explore the question: Is it riskier to stick with what you have or make progress towards a better business?

What is the Biggest Risk in Forming a Business?

Forming a business comes with its fair share of risks, and identifying the biggest risk can help you make informed decisions. One significant risk is the uncertainty of the market demand for your product or service. Without proper market research and analysis, you may find yourself investing time and resources into a business that lacks consumer interest. Conducting thorough market research, understanding your target audience, and assessing the demand for your offering can help mitigate this risk.

Another critical risk is financial instability. Starting a business often requires significant upfront investments, and without proper financial planning, you may face cash flow issues. It’s crucial to create a realistic budget, secure sufficient funding, and closely monitor your expenses to avoid running into financial trouble.

Legal and regulatory risks also pose a significant challenge for businesses. Failure to comply with laws and regulations relevant to your industry can lead to legal repercussions and damage your reputation. It’s essential to stay updated on legal requirements, obtain necessary licenses and permits, and establish compliant business practices to mitigate this risk.

What do You Think are the Risks Associated with Putting up a Business?

Putting up a business involves a myriad of risks that require careful consideration. One of the primary risks is competition. Regardless of the industry, competition is inevitable. Failing to identify and understand your competition can hinder your business’s growth. Conduct a competitor analysis, differentiate your offerings, and develop a unique value proposition to stand out from the crowd.

Another risk is operational inefficiency. Inadequate processes, poor resource allocation, and lack of effective management can result in wasted time, money, and effort. It’s crucial to streamline your operations, invest in technology and automation, and empower your team with the necessary tools and training.

Financial mismanagement is yet another risk that can cripple a business. Inadequate financial planning, overspending, and ineffective pricing strategies can lead to cash flow issues, debt accumulation, and even bankruptcy. Developing sound financial management practices, seeking professional advice, and regularly reviewing your financial performance are essential to mitigate this risk.

What do You Think the 3 Biggest Risks are for Small Businesses?

Small businesses face specific risks that can significantly impact their success. Firstly, limited resources pose a considerable challenge. Small businesses often operate with tight budgets, limited manpower, and fewer marketing opportunities. The lack of resources can impede growth and hinder your ability to compete effectively. Careful resource allocation, strategic partnerships, and innovative marketing strategies can help overcome this challenge.

Secondly, market volatility can be a significant risk for small businesses. Economic downturns, changing consumer trends, and disruptive technologies can quickly disrupt small businesses. To mitigate this risk, staying informed about industry trends, diversifying your offerings, and adapting your business model to the changing landscape is crucial.

Lastly, inadequate scalability can be a risk for small businesses with ambitions to grow. Scaling up operations without proper planning and infrastructure can lead to operational inefficiencies, compromised quality, and overwhelmed staff. It’s important to develop a scalable business model, invest in technology, and build a strong foundation that can support growth.

What Should I Avoid to be Successful in Business?

To achieve success in business, it’s crucial to avoid certain pitfalls and mistakes. Here are some key points to consider:

  1. Lack of Planning: Failing to create a comprehensive business plan can be detrimental to your success. A well-thought-out plan serves as a roadmap, outlining your goals, strategies, target market, and financial projections. It helps you stay focused, make informed decisions, and adapt to changes effectively.
  2. Poor Financial Management: Neglecting financial management can lead to severe consequences. It’s important to establish sound financial practices, including budgeting, tracking expenses, managing cash flow, and staying on top of tax obligations. Seeking professional advice from accountants or financial advisors can provide valuable insights and ensure your financial stability.
  3. Ignoring Market Research: Conducting market research is vital for understanding your target audience, identifying their needs, and evaluating your competition. Skipping this step can result in launching products or services that don’t align with market demand, wasting resources and time. Invest in market research to make informed decisions and develop strategies that resonate with your customers.
  4. Lack of Adaptability: In today’s rapidly changing business landscape, adaptability is crucial for survival. Failing to embrace new technologies, consumer trends, or industry shifts can leave you behind. Stay agile and open-minded, constantly seeking opportunities for innovation and improvement. Embrace change as a chance to grow and evolve.
  5. Poor Customer Service: Neglecting customer satisfaction can be detrimental to your business. Your customers are the lifeblood of your company, and their positive experiences are essential for building a loyal customer base. Focus on providing exceptional customer service, promptly addressing their concerns, and continuously improving their overall experience.
  6. Ineffective Marketing: Even if you offer a great product or service, without effective marketing, your business may go unnoticed. Develop a strong marketing strategy that utilises various channels such as social media, content marketing, SEO, and advertising to reach your target audience. Tailor your messaging to resonate with your customers and consistently monitor and adjust your marketing efforts for optimal results.

In the world of business, there are inherent risks associated with both sticking with what you have and pursuing progress. However, it is often riskier to remain stagnant, as it can lead to missed opportunities and eventual decline. By understanding the risks involved in forming a business, putting up a business, and running a small business, you can take proactive steps to mitigate them. Additionally, by avoiding common pitfalls such as lack of planning, poor financial management, and ineffective marketing, you can increase your chances of success. Embrace adaptability, prioritise customer satisfaction, and invest in market research to stay ahead of the competition. Remember, progress and growth are essential for long-term success in business.

More business risk management articles videos and reviews

BusinessRiskTV Business Risk Management Club Membership
Risk Management Think Tank BusinessRiskTV Risk Experts
Business Development Service
Enterprise Risk Management Magazine BusinessRiskTV ERM Magazine
Business Risk Academy
Risk Management Jobs
Business Risk Management Marketplace BusinessRiskTV
Buy and Sell Online Marketplace BusinessRiskTV Free Online Marketplace

Is it riskier to stick with what you have or make progress towards a better business

Business Risk Management Planning For 2023

What business leaders need to know when preparing to manage business risks effectively in 2023

Calculated Risk Taking In Business In 2023

As a risk management expert, I can confidently say that taking calculated risks in business is essential for survival and success in the year 2023 and beyond. In today’s fast-paced and constantly evolving business landscape, it is imperative that companies stay ahead of the curve and adapt to new challenges and opportunities as they arise. This often requires taking calculated risks, or carefully considered and planned actions that have the potential to bring about significant rewards.

There are several reasons why taking calculated risks in business is important for survival and success in 2023.

First and foremost, calculated risks can lead to innovation and growth. In a world where competition is fierce and the pace of change is rapid, businesses that are able to think outside the box and take calculated risks are often the ones that are able to stay ahead of the game. By embracing new ideas and approaches, and taking calculated risks to bring them to fruition, businesses can drive innovation and open up new growth opportunities.

Calculated risks can also help businesses stay relevant and competitive in their industry. In today’s rapidly changing market, it is essential that businesses stay up-to-date with the latest trends and technologies, and be willing to adapt and pivot as needed. By taking calculated risks and embracing change, businesses can stay ahead of the competition and maintain their relevance in the market.

Another reason why taking calculated risks is important for survival and success in business is that it can help companies overcome challenges and setbacks. While it is always important to minimize risk as much as possible, it is inevitable that businesses will face challenges and setbacks along the way. By taking calculated risks and being proactive in addressing these challenges, businesses can find creative solutions and bounce back from difficult situations.

Finally, taking calculated risks can help businesses achieve long-term success. While it is important to carefully consider the potential risks and rewards of any action, it is also important to take a long-term perspective and be willing to take calculated risks in order to achieve larger goals and aspirations. By taking calculated risks, businesses can create new opportunities for growth and success that would not have been possible otherwise.

In summary, taking calculated risks in business is essential for survival and success in 2023 and beyond. By embracing innovation and change, staying competitive and relevant, overcoming challenges and setbacks, and taking a long-term perspective, businesses can thrive by taking calculated risks and embracing new opportunities as they arise.

 Top 10 business risks to manage in 2023:

  1. Cybersecurity risks: With the increasing reliance on technology and the internet in business, it is essential to protect against cyber attacks and data breaches. This includes investing in robust cybersecurity measures and regularly training employees on how to identify and prevent cyber threats.
  2. Economic risks: Economic instability and recession can have significant impacts on businesses, including reduced demand for products and services, supply chain disruptions, and financial difficulties. It is important for businesses to regularly assess and monitor economic conditions and have contingency plans in place to mitigate potential risks.
  3. Regulatory risks: Changes in laws and regulations can have major impacts on businesses, including increased costs and compliance requirements. It is important for businesses to stay up-to-date on changes in regulations and ensure that they are in compliance to avoid potential penalties and fines.
  4. Reputation risks: A company’s reputation is a valuable asset that can be easily damaged by negative events or negative perceptions. It is important for businesses to actively manage their reputation and address any issues or concerns promptly to prevent reputational damage.
  5. Market risks: Changes in consumer preferences, competition, and market conditions can all pose risks to businesses. It is important to regularly assess and monitor market conditions and adapt strategies as needed to stay competitive and respond to changing conditions.
  6. Financial risks: Financial risks can include things like unexpected expenses, cash flow issues, or difficulty securing funding. It is important for businesses to have strong financial management practices in place and to regularly assess and monitor their financial health to mitigate potential financial risks.
  7. Talent risks: Attracting and retaining top talent is essential for business success. Talent risks can include difficulty finding qualified candidates, high employee turnover, or inadequate training and development. It is important for businesses to have strategies in place to attract and retain top talent, and to provide ongoing support and development for employees.
  8. Supply chain risks: Disruptions in the supply chain can have major impacts on businesses, including delays, increased costs, and reduced quality. It is important for businesses to have contingency plans in place and to regularly assess and monitor their supply chain to mitigate potential risks.
  9. Natural disasters: Natural disasters such as hurricanes, earthquakes, and wildfires can disrupt business operations and cause significant damage. It is important for businesses to have contingency plans in place and to regularly assess and update their disaster preparedness plans.
  10. Political risks: Political instability or changes in government policies can have major impacts on businesses, including changes in regulations and trade agreements. It is important for businesses to stay up-to-date on political developments and have contingency plans in place to mitigate potential risks.
Risk CategoryRisk Description
Cybersecurity risksProtecting against cyber attacks and data breaches
Economic risksEconomic instability and recession
Regulatory risksChanges in laws and regulations
Reputation risksManaging and protecting company reputation
Market risksChanges in consumer preferences, competition, and market conditions
Financial risksUnexpected expenses, cash flow issues, and difficulty securing funding
Talent risksAttracting and retaining top talent
Supply chain risksDisruptions in the supply chain
Natural disastersNatural disasters such as hurricanes, earthquakes, and wildfires
Political risksPolitical instability or changes in government policies

Example of business risk management action plan for leaders for each 2023 business risk in table

Here is a business risk management action plan for leaders for each risk in the table above:

  1. Cybersecurity risks:
  • Implement robust cybersecurity measures such as firewalls, antivirus software, and secure passwords
  • Regularly train employees on how to identify and prevent cyber threats
  • Develop a cybersecurity incident response plan
  1. Economic risks:
  • Monitor economic conditions and trends regularly
  • Develop contingency plans to mitigate potential impacts of economic instability or recession
  • Consider diversifying business operations and sources of revenue
  1. Regulatory risks:
  • Stay up-to-date on changes in laws and regulations that may impact the business
  • Ensure compliance with all relevant regulations
  • Develop contingency plans for potential changes in regulations
  1. Reputation risks:
  • Monitor and manage company reputation through proactive communication and addressing any issues or concerns promptly
  • Implement a crisis management plan to address potential reputational risks
  • Foster a positive corporate culture and values
  1. Market risks:
  • Monitor market conditions and trends regularly
  • Conduct market research to understand consumer preferences and competition
  • Develop strategies to adapt to changing market conditions
  1. Financial risks:
  • Implement strong financial management practices, including budgeting, forecasting, and risk assessment
  • Monitor financial health regularly and take proactive measures to address potential financial risks
  • Develop contingency plans for unexpected expenses or cash flow issues
  1. Talent risks:
  • Develop strategies to attract and retain top talent, including competitive compensation and benefits packages and ongoing training and development
  • Foster a positive company culture and work environment to reduce employee turnover
  • Implement a talent management plan to identify and address any talent risks
  1. Supply chain risks:
  • Monitor and assess supply chain risks regularly
  • Develop contingency plans to mitigate potential supply chain disruptions
  • Consider diversifying sources of supplies and vendors
  1. Natural disasters:
  • Develop a disaster preparedness plan and regularly assess and update it as needed
  • Implement measures to protect against potential damage from natural disasters, such as backup power sources and securing important documents and equipment
  • Train employees on disaster response protocols
  1. Political risks:
  • Monitor political developments and changes in government policies that may impact the business
  • Develop contingency plans to mitigate potential political risks
  • Consider diversifying business operations and sources of revenue to mitigate potential impacts of political instability.

Why business leaders need to create their own business risk management action plan to manage these key business risks facing their business in 2023

Business leaders are faced with a multitude of risks in today’s rapidly changing business landscape, and it is essential that they have a plan in place to manage these risks effectively. A business risk management action plan is a strategic approach to identifying, assessing, and mitigating potential risks that may impact the business.

Creating a business risk management action plan is important for several reasons. First and foremost, it helps leaders anticipate and prepare for potential risks that may arise. By identifying and assessing potential risks, leaders can develop strategies to mitigate or eliminate these risks before they become a problem. This proactive approach can help prevent significant disruptions to business operations and protect the long-term viability of the company.

A business risk management action plan also helps leaders prioritise their risk management efforts and allocate resources accordingly. By understanding the potential impacts and likelihood of different risks, leaders can prioritize their efforts and allocate resources to the areas that will have the greatest impact on the business.

Another reason why business leaders need to create a business risk management action plan is that it helps to build resilience and adaptability within the organisation. By regularly reviewing and updating the action plan, leaders can ensure that the business is continuously adapting to changing circumstances and able to weather any potential storms that may arise.

Finally, a business risk management action plan helps to promote transparency and accountability within the organisation. By clearly outlining the steps that will be taken to mitigate risks, leaders can foster a culture of transparency and accountability, which is essential for building trust with stakeholders and customers.

In conclusion, business leaders need to create a business risk management action plan to effectively manage the key business risks facing their business in 2023 and beyond. This strategic approach helps to anticipate and prepare for potential risks, prioritize risk management efforts, build resilience and adaptability, and promote transparency and accountability within the organization. By taking a proactive and structured approach to risk management, business leaders can protect the long-term viability of their company and ensure its success in an uncertain and rapidly changing business landscape.

Who should be preparing a risk management action plan to manage business risks in 2023?

A risk management action plan should be prepared by business leaders and key decision-makers within the organisation. This typically includes the CEO, CFO, and other top executives who have the authority and responsibility to implement risk management strategies. In some cases, the board of directors may also be involved in the development and implementation of the risk management action plan.

In addition to senior leadership, it is also important for other key stakeholders within the organisation to be involved in the risk management process. This may include department heads, team leaders, and individual employees who have relevant knowledge and expertise. Engaging a diverse group of stakeholders in the risk management process can help to identify a wider range of potential risks and ensure that the risk management action plan is comprehensive and effective.

It is also important to involve external advisors and experts, such as risk management consultants or legal experts, in the development of the risk management action plan. These individuals can provide valuable insights and guidance on industry-specific risks and best practices for risk management.

Overall, the development of a risk management action plan should involve a collaborative effort across the organization, with input and involvement from senior leadership, key stakeholders, and external advisors. By bringing together a diverse group of individuals, businesses can create a comprehensive and effective risk management action plan that helps to mitigate potential risks and protect the long-term viability of the company.

How can you get help to prepare your business risk management plan and implement a more effective risk management strategy to boost your business resilience and performance?

Our network of enterprise risk management experts can help you. Email [email protected] for more information.

Subscribe to BusinessRiskTV for free

Subscribe click here
  • Click on subscribe button to subscribe for free via your preferred social media App; or subscribe for free to our business risk management newsletter by emailing [email protected]

More business risk management articles videos and deals

BusinessRiskTV Business Risk Management Club Membership
Enterprise Risk Management Magazine BusinessRiskTV ERM Magazine
Common Business Risks BusinessRiskTV Risk Watch Online
Risk Management Think Tank BusinessRiskTV Risk Experts
Business Development Service

Business Risk Management Planning For 2023

What are the things you need to avoid in order for your business to grow and be successful?

Make sure you focus your business resources on the key threats and opportunities facing your business

How do you make sure your business does not fail?

Avoid mistakes your team know are too risky. Pick up business tips help and support to protect and grow your business. What do you need to make sure doesn’t happen in your business in next 5 years if you are to look back and assess your business plan to have been a success? What do you not want your business to look like in five years time? How are you going to ensure you are successful? Collaborate with other business leaders on a better business risk management strategy. Adopt a more creative innovative approach to business risk taking.

  • Find and solve business problems more cost-effectively.
  • Manage your business risks better.
  • Learn how to sell more online to grow your business faster.

Analyse key business risks currently impacting on your business and risks on the horizon. Understand the benefits of balanced business risk management strategy. Focus your available resources on what really matters for your business.

Follow businessrisktv

 

What are the things you need to avoid in order for your business to grow and be successful?

 

 

Take Risks With BusinessRiskTV

Take the risk or lose the chance to grow faster with BusinessRiskTV

Take The Risk Or Lose The Chance

Follow BusinessRiskTV by subscribing for free today

BusinessRiskTV.com Free Subscription Online
Subscribe to BusinessRiskTV.com for free
Guide To Business Enterprise Risk Management ERM
Risk Appetite and Risk Tolerance

Taking calculated risks is the business of the entrepreneur or business leaders. Taking the right risks will make your business more successful. Taking mo risk is condemning your business to a slow death, at best.

See The Road Ahead More Clearly With BusinessRiskTV
See The Road Ahead More Clearly With BusinessRiskTV

More Risk Management Articles Videos and Reviews

Take the Risk or Lose the Chance to Be Better in Business

In business, as in life, there are always risks involved. But sometimes, the only way to achieve success is to take a chance.

A ship in the harbour is safe but that’s not what ships are for.

There are many reasons why it’s important to take risks in business. Here are a few:

  • Risks can lead to innovation. When businesses take risks, they often come up with new and innovative products or services. This can help them to differentiate themselves from their competitors and gain a competitive advantage.
  • Risks can lead to growth. When businesses expand into new markets or launch new products, they often experience growth. This can lead to increased revenue, profits, and market share.
  • Risks can lead to learning. When businesses take risks, they often learn from their mistakes. This can help them to improve their products, services, and processes.

Of course, there is also the risk of failure when taking risks in business. But the potential rewards often outweigh the potential risks.

So, if you’re thinking about starting a business or expanding your existing business, don’t be afraid to take some risks. Just make sure you do your research and plan carefully. And be prepared to learn from your mistakes.

Is it better to take the risk or lose the chance?

The answer to this question depends on your individual circumstances and goals. If you’re willing to take a risk and have a good chance of success, then it may be worth it. However, if you’re not willing to take a risk or the chances of success are slim, then it may be better to play it safe.

Why is it important to take risk in business?

There are several reasons why it’s important to take risks in business. Here are a few:

  • Risk can lead to innovation. Businesses that are willing to take risks are more likely to innovate and come up with new products and services. This can help them to stay ahead of the competition and grow their business.
  • Risk can lead to growth. Businesses that are willing to take risks are more likely to grow their business. This can be done by expanding into new markets, launching new products, or acquiring other businesses.
  • Risk can lead to learning. Businesses that are willing to take risks are more likely to learn from their mistakes. This can help them to improve their products, services, and processes.

Is it worth it to take risk business?

Whether or not it’s worth it to take risks in business depends on a number of factors, including the size of the risk, the potential reward, and the likelihood of success.

In general, it’s only worth taking risks that have a good chance of success and that are worth the potential reward. For example, it may not be worth taking a risk on a new product that has a small market potential. However, it may be worth taking a risk on a new product that has a large market potential and that can be produced at a low cost.

What does take risks mean in business?

Taking risks in business means being willing to try new things, even if there is a chance of failure. It means being willing to step outside of your comfort zone and explore new opportunities. It also means being willing to learn from your mistakes and keep moving forward.

Taking risks is not always easy, but it can be very rewarding. When you take risks, you have the potential to achieve great things. You can grow your business, innovate new products, and reach new markets. So, if you’re looking to achieve success in business, don’t be afraid to take some risks.

Here are some tips for taking risks in business:

  • Do your research. Before you take any risks, make sure you do your research and understand the potential risks and rewards.
  • Plan carefully. Once you’ve done your research, create a plan for how you’re going to mitigate the risks and maximize the rewards.
  • Be prepared to fail. Even if you do everything right, there’s always a chance that you’ll fail. Be prepared to learn from your mistakes and move on.
  • Don’t give up. If you fail, don’t give up. Learn from your mistakes and keep trying.

Taking risks can be scary, but it’s also an essential part of business success. If you’re willing to take some risks, you’ll be well on your way to achieving your goals.

https://businessrisktv.com/business-club-membership/
https://businessrisktv.com/about/enterprise-risk-magazine/
https://businessrisktv.com/business-risk-experts/risk-management-think-tank/
https://businessrisktv.com/academy/
https://businessrisktv.com/business-development-service/
https://businessrisktv.com/risk-insight-business-intelligence/riskwatch/
https://businessrisktv.com/risk-management-jobs-2/
https://businessrisktv.com/marketplace/business-risk-management-marketplace/
https://businessrisktv.com/business-tips/money-saving-ideas-for-companies-individuals/
https://businessrisktv.com/business-agony-uncle/

Take Risks With BusinessRiskTV

Taking No Risk Is The Biggest Risk To Your Business

Are you looking to boost your business performance

If your business risk management strategy is to not take risks it is likely that your business will die quickly or slowly, but fail it will

The consequences of not taking risks in business is that your risk control costs will make your business uncompetitive in your marketplace, or you will miss business opportunities to grow faster. The risk of doing nothing is an inevitable death of your business. Intelligently taking more risk can mitigate the risks not working out and boost the return on your investment of time and money in your business. Take a business risk with more confidence with BusinessRiskTV.

Guide to being more successful entrepreneur or intrapreneur
Supporting Entrepreneurs and Intrapreneurs

The biggest risk is taking no risk at all

Business leaders have to take risks to survive and prosper in their chosen marketplace. This does not mean business leaders should be reckless. It just means they need to be mindful of the key business risks that do impact on the objectives of the business.

Failing to plan does mean you are planning to fail. However even the best laid business plan can fail when exposed to the vagaries of the business marketplace. Your business risk management plan needs to be flexible and it needs regular reviewing to ensure it is working efficiently.

Business Coaching Services
Business Coaching Services

The best risks to take are the ones you can direct into your favour. Luck will always play its part in risk taking, but you can take risk with confidence if you have the right risk management process embedded in your business decision-making.

Why taking no risk is the biggest risk

The world of business is changing at an ever faster rate. Children born today will do jobs that have not even been invented yet.

It is often said that me learn more from our mistakes than from our successes. Not taking risks may mean you make fewer mistakes, but you may also miss the opportunities to grow faster from ways you could not have envisaged prior to taking a risk. Taking a known risk, even if you don’t know all the possible outcomes, can teach you something that can drive your business forward faster. Without business risk there is no innovation in business. Being good at taking risks means you can optimise your business performance.

Boost Your Business Today
Upgrade Your Business Today

Subscribe for free alerts to BusinessRiskTV latest business risk management news and reviews

Subscribe to businessrisktv for free

Enter code #RiskManagement

Taking No Risk Is The Biggest Risk To Your Business

The greatest risk is not taking one

You do not need to leap into the dark

Taking Risks To Achieve More In Business With BusinessRiskTV

Supporting More Informed Decision-Making

Do not manage your business from the stand point of fear of business risks. Overcoming fear in business starts with improving your ability to inform your decision-making. With less risk information you have more uncertainty. Increased uncertainty increases negative impact on your business objectives.

Success normally comes from taking controlled risks not hunkering down, crossing fingers or hoping it will work out for you

Guide To Business Enterprise Risk Management ERM

Risk Appetite and Risk Tolerance

Even if you do not seek business risks, they will find you! Risk taking is part and parcel of the job description of business leaders. Most business leaders seek greater rewards from their business. Greater rewards normally come from taking on more risk. Taking on more risk does not automatically mean you need to take on a higher level of risk. If you control the risks you take on the net level of risk can remain the same, but the rewards can be greater.

See The Road Ahead More Clearly With BusinessRiskTV

See The Road Ahead More Clearly With BusinessRiskTV

Learn how to improve your business decision-making capability to boost your business performance

Increase the chance of success in business by improving the quality quantity and speed of your decisions. Improve your decisions by improving the risk information at your disposal and the risk management tools and techniques you use to help you make decisions.

Contact us for more information on upcoming online workshops Webinars and networking opportunities to help you understand and manage risks better
Taking More Business Roisk More Confidently More Profiably

Risk Management Corporate Governance and Regulatory Compliance GRC Insight

Importance Of Risk Taking In Entrepreneurship

Importance Of Risk Taking In Business

Risk Management Online

How To Take Over The World
Business Management Experts BusinessRiskTV.com

Grow Faster With Less Uncertainty With Risk Management Online News Opinions Reviews and Risk Analysis

How to make better more informed business decisions with BusinessRiskTV

The greatest risk is not taking one

This Will Fundamentally Change The Way You Look At Risk

Stop looking to reduce risk and instead make your business plans under a risk-based approach to business decision making with BusinessRiskTV

How can business leaders change business performance with a more risk based approach to business management?

Are you interested in boosting your business performance? Do you use online resources to improve your knowledge of business risks impacting on your business objectives? Do you want to make your business more profitable?

Follow businessrisktv

Do you want us to help your business grow faster

Look at risk as a positive for your business. Manage the threats better. Seize new business development opportunities quicker and enhance the benefits arising from risk taking.

contact us for more information on embracing risk within your business planning email [email protected]

Around BusinessRiskTV

  • Risk Profile v Risk Appetite – Risk tolerance vs risk appetite is important to understand. If you do not know what your risk profile is you cannot manage your business risks better. Could you increase your appetite for risk to achieve more business success? What is your risk tolerance?
  • How To Grow Business Faster Business Tips – Grow business faster with BusinessRiskTV. Use practical business growth tips. Thing how do I grow my business fast? Need how to grow business tips. Use latest business tips and marketing tools. Our business growth experts work with our Online Selling Partners providing tips for business growth. Learn how to grow your business fast with BusinessRiskTV. Pick up tips on how to grow business faster. Connect with our business growth experts and partners. Save money and time to become more profitable and other latest business tips from BusinessRiskTV.
  • iso 31010 Risk Management and Risk Assessment Techniques Guidance – Do you know where to focus our resources to protect and grow your business? iso 31010 risk assessment tools and techniques can help you identify assess and control critical risks to your business. Understand your business risks better with iso 31010 risk assessment awareness. Mitigating Threats Maximising Returns From Business Opportunities
  • Understanding and Managing Risk Better – A better way to manage business enterprise risk. Risk management courses distance learning. Develop better business risk management plan. Discover best enterprise risk management online training courses for your needs. Risk management courses UK and overseas. Join like minded senior managers executives and risk management practitioners. Learn how to manage business enterprise risk management risks better. Save money and time with BusinessRiskTV. Search for tips on developing your improved business risk management plan.

Get In Touch

Are you interested in growing your business faster? Do you use the internet to attract new customers. Do you want to sell more online? Do you want us to help your business grow faster online?

Submit a question. Share your views and experiences. Please include a contact number if you are willing to speak to us. You can get in touch in the following ways:

  • Whats App Click Here
  • Tweet @HolisticRiskMgt and @ERMuk
  • Email [email protected]
  • Instagram BusinessRiskTV
  • Pinterest BusinessRiskTV
  • YouTube BusinessRiskTV

Related Business Risk Management Topics

Guidance On Enterprise Risk Management On BusinessRiskTV

Pro risk manager
Do you want your business to be bigger or more profitable?

ERM Framework Implementation

Enterprise Risk Management (ERM) is the process of identifying, assessing, prioritising, and managing risks that could affect an organisation’s ability to achieve its objectives. In today’s fast-paced business environment, organizations face numerous risks, such as financial, operational, strategic, regulatory, reputational, and cybersecurity. The failure to manage these risks could lead to severe consequences, such as financial loss, legal liability, damage to reputation, and even business failure.

Therefore, it’s critical for organizations to implement a robust ERM framework to identify and mitigate risks that could potentially harm the organization. In this article, we will provide guidance on how organisations can implement an effective ERM framework to manage risks.

Establishing an ERM framework
The first step in implementing ERM is to establish a framework that outlines the organisation’s risk management policies, procedures, and practices. The framework should define the roles and responsibilities of the risk management team, establish risk assessment methodologies, and identify the key risk indicators (KRIs) that will be used to monitor risks.

The ERM framework should also identify the organisation’s risk appetite, which refers to the level of risk that the organisation is willing to accept in pursuit of its objectives. The risk appetite should be clearly defined and communicated to all stakeholders, including employees, investors, customers, and regulators.

The ERM framework should be aligned with the organisation’s strategic objectives, and the risk management team should work closely with the senior management team to ensure that risk management is integrated into the organisation’s decision-making process.

Conducting a risk assessment
The next step in implementing ERM is to conduct a risk assessment, which involves identifying, analysing, and evaluating risks that could potentially harm the organisation. The risk assessment should be based on a systematic and comprehensive approach that considers all the potential risks that the organisation faces.

The risk assessment should consider both internal and external factors that could affect the organisation’s ability to achieve its objectives. Internal factors include the organisation’s culture, structure, processes, and people, while external factors include economic, political, technological, and regulatory factors.

The risk assessment should also consider the likelihood and impact of each risk and prioritise them based on their significance. The risk assessment should be updated periodically to ensure that new risks are identified and managed.

Developing a risk management plan
Once the risks have been identified and prioritised, the next step is to develop a risk management plan that outlines the actions that will be taken to manage each risk. The risk management plan should consider the risk appetite of the organisation and the resources that are available to manage the risks.

The risk management plan should include specific measures to mitigate each risk, such as risk avoidance, risk reduction, risk transfer, and risk acceptance. Risk avoidance involves eliminating the risk altogether, while risk reduction involves implementing measures to reduce the likelihood or impact of the risk. Risk transfer involves transferring the risk to another party, such as an insurance company, while risk acceptance involves accepting the risk and managing it within the organisation’s risk appetite.

The risk management plan should also identify the stakeholders who will be responsible for managing each risk and the KRIs that will be used to monitor the risks. The risk management plan should be reviewed periodically to ensure that it remains effective and relevant.

Implementing risk management controls
The next step in implementing ERM is to implement risk management controls to manage the risks. Risk management controls are the policies, procedures, and practices that are implemented to manage the risks identified in the risk assessment.

Risk management controls should be designed to ensure that the organisation operates within its risk appetite and that the risks are managed effectively. Risk management controls should be integrated into the organisation’s processes and systems to ensure that they are followed consistently.

Monitoring and reporting on risks
The final step in implementing ERM is to monitor and report on risks. Monitoring involves tracking the effectiveness of the risk management controls and the KRIs that were identified in the risk management plan. The monitoring process should be designed to detect any changes in the risk environment and to ensure that the risk management controls remain effective.

Reporting involves communicating the results of the risk management process to stakeholders, such as the board of directors, senior management, investors, customers, and regulators. The reporting should provide an accurate and comprehensive view of the organisation’s risk exposure and the effectiveness of the risk management controls.

Reporting should also include any significant changes in the risk environment and any emerging risks that could potentially impact the organisation. Reporting should be timely, accurate, and relevant to ensure that stakeholders have the information they need to make informed decisions.

ERM is a critical process that organisations must implement to manage the risks they face. ERM involves identifying, assessing, prioritising, and managing risks that could potentially harm the organisation.

To implement an effective ERM framework, organizations must establish a framework that outlines the risk management policies, procedures, and practices. They must conduct a comprehensive risk assessment that considers all the potential risks that the organisation faces and prioritise them based on their significance.

They must develop a risk management plan that outlines the actions that will be taken to manage each risk and implement risk management controls to manage the risks. Finally, they must monitor and report on risks to ensure that the risk management process remains effective and relevant.

By implementing an effective ERM framework, organisations can mitigate the risks they face and achieve their objectives in a safe and sustainable manner. The ERM framework should be reviewed and updated periodically to ensure that it remains effective and relevant to the changing risk environment.

Biggest threat to business

What Will Threaten Your Business This Year

MarketplacesExhibitions
MagazinesRisk Magazine

This Will Fundamentally Change The Way You Look At Risk

Calculating the business risk of current and future threats

Taking the right risks for greater success with BusinessRiskTV.com

Identifying and managing business risks

How can a business identify risk and manage business resources to manage business risks better? Undertake risk profile analysis to inform your business decision making. Practical enterprise risk management ERM tips advice training and consultancy.

contact us for more information about mitigating threats and seizing opportunities with businessrisktv

Enter code #CalculatedRisks

How To Take Over The World

Many risk events are possible. However how do you manage your resources cost effectively to control risks whilst boosting business performance?

When beginning the risk management process identify risks that could impact on your business objectives. Look at the whole business at once rather than individual silos functions or departments.

Do not make assumptions at the beginning about the level of risk or effectiveness of risk control measures. Assume that what you currently do risk management wise will not work or not work well enough to control risks.

Consult experts within your business at all levels and experts outside of your business who may have an understanding of your risks. Focus your attention on key internal and external drivers of risk that may have significant impact on your business objectives.

Your business risk exposure needs to be right for your risk management culture. What is your appetite for risk? How much risk can your business tolerate? Getting the balance right is key for sustainable business success.

Reduce or eliminate threats as soon as they appear on the horizon. Seize new business opportunities before your competitors do. Anticipate and plan for future risks. React quickly to current or unexpected risk events.

Risk analysis and Holistic Enterprise Wide Risk Management Approach Will Improve Your Business Decision Making To Boost Business Performance

Manage risks better. Minimise the impact of risk on your business plans. Manage potential problems easier quicker and less expensively. Stop the undermining of key business initiatives or projects by risk events. Explore possible future threats.

Identify business opportunities for growth. Back the best ones to maximise return in investment of time and money. Boost the profit from the best new ideas. Manage opportunities for greater success better.

Create the right risk management framework and enterprise wide risk assessment process for your business

The source of your business risks can be wide and varied. Often they are specific to your business. Sometimes the affect just your industry or geographic location. Occasionally they affect most of the world like the financial crisis of 2008 or global pandemic like 2020.

The impact on your business maybe life giving like if your business is a deep cleaning business or face mask manufacturer in coronavirus outbreak. Or risk events can destroy your business and it may never recover. Your risk management assessment and approach to risk control needs to be tailored to your business.

Not all risks are bad and bad risk events can be good for your specific business in so many different ways. For example the coronavirus tragically will kill thousands of people. In addition many businesses will fail including many of your competitors. Out of the flames the phoenixes will rise. The challenge is to make sure your business and your people survive and prosper no matter what risks are thrown at your business.

Put your great ideas into action with more confidence. Continue to be optimistic about your future. The way your business could and perhaps should change forever not just to get through coronavirus. Learn the lessons from horrifically tragic risk events. Seize the opportunities coming from the 4th industrial revolution. Survive and prosper today tomorrow and then next day no matter what risks you face no matter where you do business and no matter what industry you are in.

Some risks hit you like a ton of bricks. Other risks are more subtle. They creep up on you. You do not know that you are at risk until it can be too late. Enterprise wide risk management means continuous tweaking and adjustment. What is right today may not work tomorrow. The key is to review what has happened but keep your eye on the horizon to ensure you are prepared. Whether you produce the risks internally or have external risks imposed upon your business know what to do when to do it and get to where you want to be regardless.

Subscribe to BusinessRiskTV for free risk management alerts bulletins and reviews to your email inbox to help you prepare for your future in business

Sign up to BusinessRiskTV
Sign up to BusinessRiskTV newsletter or follow us via your favourite social media account

Read articles and watch videostream on taking calculated risks trending on BusinessRiskTV

Guide To Business Enterprise Risk Management ERM
Risk Appetite and Risk Tolerance

Promote and market your business on BusinessRiskTV for 12 months

Put your products or services in front of new customers already interested in your type of business offering before your competitors do.

Cheap ways to promote your business
Find out how to promote your business locally and globally

Link into your existing sales process direct from BusinessRiskTV or use our eCommerce solutions to increase your sales cash flow and profit

Increase the sources of your new income streams more sustainably. Grow your business faster with BusinessRiskTV.

MarketplacesExhibitions
Cost ReductionRisk Magazine
Discover better ways to protect and grow your business with BusinessRiskTV

#BusinessRiskTV #CalculatedRisks #RiskManagement #EnterpriseRiskManagement #ERM #GRC #Governance #Risk #Compliance

Calculating the business risk of current and future threats BusinessRiskTV

Do you fear losing what you have created instead of valuing what you might gain from taking more risk?

How to overcome loss aversion with BusinessRiskTV.com

How do we make the best use of available business assets and resources to maximise return of investment of time and money

Fear of loss often beats the desire to gain more. Fearing losing everything you have built is natural human reaction. However is your fear getting in the way of seizing new business opportunities? Keep innovating and growing with less uncertainty with BusinessRiskTV.

Develop a holistic risk management culture to drive your business forward. Up your risk appetite to achieve more with more controlled balanced risk taking.

The biggest factor in business leader decision making is fear of loss. People worry about loss more than securing gains.

BusinessRiskTV

Develop a more assured risk management framework and risk assessment process to match your risk culture. Make sure your risk taking remains within your risk tolerance.

contact us for more information on calculated risk taking for greater success with businessrisktv

Do you have loss aversion bias in decision making?

Business leaders who are loss averse feel the pain of loss much greater that any joy from any gains from decisions made. They make strategic business decisions accordingly. The risk culture of the business models the loss aversion bias of the business leader.

If this works well for your business you should continue with status quo. However if you would like to experience faster business growth you may need to take more calculated risks.

Loss aversion refers to the tendency to prefer avoiding losses to acquiring equivalent gains. It is better for you to not lose 10000 pounds than to make 10000 pounds in business. 

BusinessRiskTV

However most entrepreneurs and many business leaders are in their position to better themselves. If you mitigate the potential losses from taking more risks and manage the risks to maximise the return on your investment you should end up with faster growth with less uncertainty.

It is more common in people who are not entrepreneurs or business leaders to be biased against taking risks. Loss aversion is a reflection of a general bias in human psychology. People tend to want to stick with what they know than make changes that might not work well. People in general are resistant to change. When presented with the potential benefits of change they focus more on what might be lost rather than on what can be gained.

  • What is your business risk tolerance? If you can make changes to try to grow faster that if do not work fall within your risk tolerance would you take more risk?
  • If you adopted small changes rather than one big radical all eggs in one basket change would you feel more comfortable? Spreading your faster business growth changes across a few new ideas may be better for your business. When you know which one of the new changes works best perhaps then you can focus on one new idea.
  • Do not confuse more risk taking in business with gambling. Taking calculated risks to grow faster is about assessing and then managing the risks before you action more risk taking. You can mitigate the threats from more risk as well as maximise the returns from taking more risks.

Few things in business life are guaranteed other than taxes! Even maintaining the status quo comes with the threat of business failure. Kodack photography business was once one of the most successful businesses in the world. How many Kodack films do you buy for your camera now!

The desire to avoid business losses is motivated by fear. The more a business leader fears losses the more likely he or she is to be loss averse and the more likely they are to be disinclined to make changes to their business to be more successful. Having a better understanding of the risks that could be taken to achieve more will make loss averse business leaders more comfortable with changing the the business.

Often the perception of risks and reward are skewed to the belief that you are doomed to fail which means you do not make changes to the business. By the same token it is important that all stakeholders in the business are involved in assessing risks from changes to business. Business leaders who do like taking risks can miss the pitfalls to mitigate against whilst making changes that can cause the change project fail even if it was a great idea.

With a little input and engagement from all levels of the organisation your project to grow faster is more likely to be a success. Take risks that are worth taking which are achievable with everyone onboard.

BusinessRiskTV

Subscribe to BusinessRiskTV for free alerts bulletins and reviews to your email inbox on enterprise risk management and project risk management

BusinessRiskTV.com Free Subscription Online
Subscribe to BusinessRiskTV.com for free

Promote and market your business on BusinessRiskTV for 12 months

Put your products or services in front of new customers already interested in your type of business offering before your competitors do.

Cheap ways to promote your business
Find out how to promote your business locally and globally. CLICK HERE to find out more entering code #Marketing.

Link into your existing sales process direct from BusinessRiskTV or use our eCommerce solutions to increase your sales cash flow and profit. Increase the sources of your revenue streams more sustainably. Grow your business faster with BusinessRiskTV.

MarketplacesExhibitions
Save MoneyRisk Magazine

#BusinessRiskTV #TakingCalculatedRisks #BusinessOpportunities #BusinessInnovation #GrowthMindset #BusinessGrowthForum #BusinessGrowthTips #BusinessGrowthAdviser #SustainableBusinessGrowth

Do you fear losing what you have created instead of valuing what you might gain from taking more risk? BusinessRiskTV

Taking more calculated risks

Why calculated risk taking is important with BusinessRiskTV.com

How can a business take more risks to perform better?

Taking more calculated risks in the next decade. Do not fear taking more calculated risks. Business leaders are often afraid to take risks.

Follow businessrisktv

What Is key to busness growth
Unlock faster business growth with BusinessRiskTV.com

Taking more risks to achieve more success comes down to risk knowledge and business intelligence. A lack of risk knowledge leads to increased fear. This can result in missed opportunities to grow faster.

  • What are the potential costs of taking more risks?
  • What are the potential benefits of taking more risks?
  • How will taking more risks benefit your business?
  • What are the alternatives?
  • How much better would your business perform if the best case scenario came true?
  • What are the worst outcomes that could happen if you took extra risks and how could you reduce the risk?
  • How bad would it be if the worst case scenario risk event materialised?
  • What would your business look like in 5 years if your risk decisions were taken?

Assessing the risks incorporating both upside and downside risks will enable you to make more balanced business decisions to improve performance.

Guide To Business Enterprise Risk Management ERM
Risk Appetite and Risk Tolerance

Negativity bias means in part we focus more on stopping bad things from happening than creating the environment for great good things to happen. For example, we focus on stopping climate damage instead of investing money in better natural environment. We spend more money to risk control instead of seizing new business opportunities which create risk but also create more rewards for risk takers.

Welcome the threats in the 2020s as they bring opportunities

Embrace the opportunities in the new decade but be risk aware about the threats that come with the opportunities to grow. Work together with our network of business leaders and risk management experts to finish the 2020s better than you started.

Supporting More Informed Decision-Making
Taking Risks To Achieve More In Business With BusinessRiskTV

Subscribe to BusinessRiskTV for freezing alerts and bulletins to your email inbox on how to grow your business faster with less uncertainty

contact us for more information on taking more calculated risks with businessrisktv

Promote and market your business on BusinessRiskTV for 12 month

How to find new customers and increase sales
Targeted Marketing Investment To Hit The Potential Buyers You Need To Grow Your Business Faster

Read articles on risk taking for increased successful and watch videostream trending on BusinessRiskTV

A blind horse always frightens itself
MarketplacesExhibitions
Save MoneyRisk Magazine

#BusinessRiskTV #TakeMoreRisks #CalculatedRisks #RiskKnowledge #BusinessIntelligence #DecisionMaking #RiskWatch #BusinessSuccess #BusinessOpportunities #WorkingTogether #BusinessCollaboration #RiskManagement #RiskAssessment #EnterpriseRiskManagement #EnterpriseRisks

BusinessRiskTV Taking more calculated risks

You must enter the tigers den to catch his cubs

Advantages of risk taking in business with BusinessRiskTV.com

Business success normally only comes for those who take a few risks. However taking more risks does not automatically exposing your business to unacceptable risks necessary to beat the competition.

Open your business up to new business development opportunities and manage the risks that flow from this better

BusinessRiskTV

You might there are better ways to do what you already do in business or find ways to do new things to grow faster.

Guide To Business Enterprise Risk Management ERM

Risk Appetite and Risk Tolerance

Subscribe to BusinessRiskTV for free alerts and bulletins to your email inbox

subscribe to businessrisktv for free

Promote and market your business on BusinessRiskTV for 12 months

Benefits of proactive risk management

Celebrate Your Online Business Growth With Pro Risk Manager

Read articles and watch videostream trending on BusinessRiskTV

Key factors that lead to successful businesses
Do you overvalue your current business decision making ability and undervalue an alternative enterprise risk management process?
No Such Thing As Bad Economic Environment Just Bad Business Planning
Risk Radar BusinessRiskTV
Business Magazine BusinessRiskTV Business Risks
MarketplacesExhibitions
Save MoneyRisk Magazine

#BusinessRiskTV #RiskTaking #RiskTakers #DecisionMaking #Leadership #Innovation

BusinessRiskTV You must enter the tigers den to catch his cubs

Key factors that lead to successful businesses

Why will your business be successful?

Subscribe to BusinessRiskTV for free alerts and bulletins on the latest business threats and opportunities for growth to your inbox

Understand business risks. Explore the key factors that lead to successful business. Apply the relevant risk management measures. Take the risk first before the competition clicks on.

like button
  • Click on Like Button to follow us on your favourite social media App; or subscribe for free enterprise risk management newsletter by emailing [email protected]
Guide To Business Enterprise Risk Management ERM

Risk Appetite and Risk Tolerance enter code #RiskAppetite

There are a number of key factors that led to successful business. Successful business leaders understand that being in business is about managing the risks from change. Unsuccessful business leaders tend to blame their failures on economic climate changes and their successes on their brilliant business management skills!

The UK retail sector is suffering major painful changes. Tens of thousands of jobs have been lost as major retailers collapsed or contracted. Yet the UK retail marketplace has some examples of major retailers bucking this trend blamed on the UK economy by unsuccessful retail business managers.

By applying their risk management knowledge successful businesses can act quicker and with more confidence it will work out

BusinessRiskTV

Not taking risks is not an option for most business leaders. However many risk factors coming together can appear daunting. Enterprise risk management looks at the big picture and helps you identify the steps to a better business in future.

Find out how to improve your chances of business success with BusinessRiskTV. Take calculated risks to help your business grow faster with less uncertainty. Embrace change and the risks to your business.

contact us to find out more about risk management and better decision making with businessrisktv

Enter code #RiskTolerance

What a business risk assessment should include

Business risk assessment elements should fit your business culture. Some people do not like numbers. Some do. Your business risk assessment template should reflect the culture of your organisation.

A business risk assessment is a systematic process that helps organisations identify, evaluate, and prioritise risks that may impact their operations, financial performance, and reputation. It is an essential tool for managing risk and ensuring the long-term viability of a business.

There are several key elements that a business risk assessment should include:

  1. Identifying the risks: The first step in the risk assessment process is to identify the potential risks that the business may face. This can include internal risks, such as operational inefficiencies or employee misconduct, as well as external risks, such as market changes or natural disasters.
  2. Evaluating the risks: Once the risks have been identified, the next step is to evaluate their potential impact on the business. This includes considering the likelihood of each risk occurring, as well as the potential consequences if it does.
  3. Prioritising the risks: After evaluating the risks, the next step is to prioritise them based on their potential impact on the business. This will help the organisation focus its resources on the most significant risks and develop strategies to mitigate them.
  4. Developing risk management strategies: Once the risks have been prioritised, the next step is to develop strategies to mitigate them. This can include implementing control measures to prevent or reduce the likelihood of risks occurring, or transferring the risk to another party through insurance or other means.
  5. Monitoring and reviewing the risks: The risk assessment process is ongoing and should be regularly reviewed and updated to ensure that it remains relevant and effective. This includes monitoring the risks and identifying any new or emerging risks that may have arisen since the last assessment.

In summary, a business risk assessment should include the following key elements:

  • Identifying the risks
  • Evaluating the risks
  • Prioritizing the risks
  • Developing risk management strategies
  • Monitoring and reviewing the risks

Every business faces risks that could be a threat to its success

The business leaders who are better prepared for these risks and have a cost effective risk management plan and business strategy are more likely to be more successful.

Business Risk Assessment

Enterprise Wide Risk Assessment For Faster Business Growth With Best Use Of Business Assets

Develop a suitable risk assessment process to assist with your risk management plan preparation. Review your existing risk management process to ensure it is fit for purpose in a rapidly changing marketplace. Successful entrepreneurs have a good strategic operational and project risk management attitude and business culture that is flexible enough to cope with any economic environment.

MarketplacesExhibitions
DealsRisk Magazine

Factors for successful business

There are numerous factors that can contribute to the success of a business. Here are some key factors that are often considered critical for building and maintaining a successful business:

Clear Vision and Strategy: A successful business requires a clear vision and a well-defined strategy. This includes setting goals, defining the direction of the business, and developing a roadmap to achieve those goals.

Market Research and Understanding Customer Needs: Understanding the market and identifying customer needs are essential for success. Conducting thorough market research, identifying target customers, and tailoring products or services to meet their needs is critical in building a successful business.

Strong Leadership: Effective leadership is crucial for the success of any business. It involves providing direction, making decisions, motivating employees, and fostering a positive work culture. Strong leadership skills help in guiding the business through challenges and achieving the desired outcomes.

Financial Management: Proper financial management, including budgeting, cash flow management, and financial planning, is vital for the long-term success of a business. Sound financial management practices help in ensuring that the business remains financially stable and can weather economic uncertainties.

Quality Products or Services: Delivering high-quality products or services is essential for building a loyal customer base. Providing value to customers and consistently meeting or exceeding their expectations builds trust and helps in retaining customers, which is critical for the success of any business.

Effective Marketing and Branding: Successful businesses understand the importance of effective marketing and branding. Creating a strong brand presence, developing marketing strategies to reach the target audience, and promoting products or services effectively can lead to increased visibility, customer acquisition, and revenue growth.

Innovation and Adaptability: In today’s dynamic business environment, innovation and adaptability are crucial for success. Successful businesses continuously innovate, adapt to changing market trends, and find new ways to stay relevant and competitive in the market.

Efficient Operations and Processes: Streamlining operations and processes can improve efficiency, reduce costs, and enhance customer satisfaction. Implementing effective systems and processes, optimising the supply chain, and leveraging technology can lead to improved productivity and operational excellence.

Talented and Engaged Workforce: A skilled and motivated workforce is vital for the success of any business. Hiring and retaining top talent, providing opportunities for growth and development, fostering a positive work culture, and promoting employee engagement can lead to higher productivity and overall business success.

Customer Relationship Management: Building strong customer relationships is crucial for long-term success. Providing excellent customer service, maintaining open lines of communication, addressing customer feedback, and building customer loyalty are key factors that contribute to the success of a business.
These are some of the key factors that can contribute to the success of a business. However, it’s important to note that success is multifaceted and can vary depending on the industry, market, and individual circumstances. It’s essential to carefully plan, execute, and continuously adapt to changing circumstances to achieve long-term business success.

Strategic Partnerships and Networking: Collaborating with strategic partners and building a strong network can provide valuable opportunities for business growth. Strategic partnerships can help access new markets, share resources, and leverage complementary strengths, while networking can lead to new business leads, partnerships, and valuable industry insights.

Risk Management: Successful businesses recognize the importance of managing risks. This includes identifying and mitigating potential risks, having contingency plans in place, and being prepared to handle unexpected challenges. Effective risk management can help protect the business from potential setbacks and ensure its resilience.

Flexibility and Adaptability: Business environments can change rapidly, and successful businesses are agile and adaptable. Being open to change, willing to pivot when necessary, and embracing innovation can help a business stay ahead of the competition and navigate through uncertainties.

Continuous Learning and Improvement: Successful businesses are always learning and improving. Keeping up with industry trends, staying updated with technology, and seeking feedback from customers and employees can provide valuable insights for making informed decisions and driving continuous improvement.

Strong Customer Focus: Putting the customer at the center of the business is crucial for success. Understanding customer preferences, delivering excellent customer experiences, and building customer loyalty can lead to repeat business, positive word-of-mouth, and a strong brand reputation.

Ethical and Responsible Business Practices: Operating with integrity, practicing ethical business standards, and being socially responsible can build trust and credibility with customers, employees, and other stakeholders. Demonstrating responsible business practices can contribute to long-term success and sustainability.

Resilience and Persistence: Building a successful business is not always easy, and setbacks and failures are inevitable. Successful businesses demonstrate resilience, learn from failures, and persist in the face of challenges. Perseverance, determination, and the ability to bounce back from setbacks are key traits of successful entrepreneurs.

Long-term Planning and Goal-setting: Having a long-term vision and setting realistic goals is important for business success. Long-term planning allows for strategic decision-making, resource allocation, and monitoring progress towards achieving business objectives.

Adapting to Digital Transformation: In today’s digital age, successful businesses embrace digital transformation. This includes leveraging technology for automation, digital marketing, data analysis, and online presence to stay competitive and meet changing customer preferences.

Monitoring and Measuring Key Performance Indicators (KPIs): Successful businesses monitor and measure key performance indicators (KPIs) to track progress, identify areas for improvement, and make data-driven decisions. Regularly analysing KPIs provides insights into the health and performance of the business and helps in making informed decisions.

In conclusion, building and maintaining a successful business requires a combination of various factors. It’s important to have a clear vision, understand the market and customer needs, demonstrate effective leadership, manage finances wisely, deliver quality products or services, market and brand effectively, innovate, and adapt to changing environments. Additionally, building a strong team, managing risks, focusing on customer satisfaction, practicing responsible business ethics, and being resilient and persistent are key factors that contribute to long-term business success.

Discover new ways to protect and grow your business with BusinessRiskTV

#BusinessRiskTV #Success #DecisionMaking #RiskFactors #SuccessfulBusinesses #BusinessSuccess #RiskTakers #RiskTaking #BusinessLeaders #LeadershipSkills #EnterpriseRiskManagement

BusinessRiskTV Key factors that lead to successful businesses

Interested in speaking as a country or industry or specific type of risk expert

All types of risk management tips advice and support on BusinessRiskTV.com

Could you help business leaders and help yourself at the same time? You can with BusinessRiskTV. Join our panel of enterprise risk management experts. Network with your peers and risk management experts to boost your business performance. Pick up tips to overcome barriers to business growth.

Importance Of Risk Taking In Entrepreneurship

Importance Of Risk Taking In Business

Subscribe to BusinessRiskTV for free alerts and bulletins to upcoming panel discussions and debates

CONTACT US FOR MORE INFORMATION ON SPEAKING ON BUSINESSRISKTV EXPERT PANELS

Enter code #RiskPanel

Recommended articles and videos trending on BusinessRiskTV

Enterprise Risk Management Experts On Business Protection And Business Growth
Enter code #ERMexperts

Business Risk News Videos

Citizen Journalism Videos

Business Live Streaming

Business Risk Radar

Risk Events

Managing business risk advice tips consulting and training with BusinessRiskTV

Get help support and advice from our risk management experts with BusinessRiskTV

#BusinessRiskTV #Speakers #RiskExperts #IndustryExperts #CountryExperts #ExpertPanels #BusinessTips #BusinessAdvice #RiskManagementTraining #Networking

Interested in speaking as a country or industry or specific type of risk expert

Are you confident you are managing all significant business risks cost effectively

How to manage risk in business with BusinessRiskTV.com

Is your business taking too much or too little risk?

Have more confidence in your business risk management decision making process. Improve your business performance and build business resilience.

contact us for more information on developing business intelligence and risk knowledge to improve business decision making

Assuming you are managing enterprise risks well can be dangerous

You might be taking too much risk unknowingly but you might also be taking too little risk and failing to make the best use of your business assets.

Guide To Business Enterprise Risk Management ERM
Risk Appetite and Risk Tolerance

How confident are you that you are managing enterprise risks cost effectively?

What are the hidden costs of your failure to manage risk properly

  • Missed opportunities cost
  • Over protection of business wasting resources and increasing your costs
  • Under protection leaving you exposed threatening your survival or prosperity and stopping you getting a quiet night’s sleep

Can you demonstrate to your business stakeholders that significant enterprise-wide risks are being effectively managed? Have you a balanced risk -reward risk management plan that prioritises the allocation of resources for best potential effect on business objectives? When was the last time you reviewed your enterprise risk management plan?

Enterprise Risk Magazine

Controlling the risks in the workplace is not just about safety and business insurance. Your business must control enterprise wide risks. What is the aggregate effect of risk on your business objectives? Do you understand the threats to objectives and the opportunities you have in front of you?

Find out how enterprise risk management can help you monitor your overall business’s performance

Identify and manage both external risk drivers and internal risk drivers impacting on your business success.

Manage Risk Better
Improve your risk knowledge to solve business problems today and in future

Do you have confidence your business is ready for emerging risks?

We are only at the beginning of the 4th Industrial Revolution. Many jobs are going to disappear. Many jobs are going to change. Businesses that don’t change to reflect emerging risks will not survive the rapid changes that have started but will accelerate over next few years.

Prepare Your Business For The Fourth Industrial Revolution

Maximising business opportunities for growth 

There is a yin and yang to all threats and opportunities.  

  • Every threat comes with an opportunity to change for the better.  
  • Every opportunity comes with a threat that the new will destroy existing value.

Business decision makers have tougher choices now than many recent business leaders have faced and many choices may threaten survival if you choose badly. Making good choices could also drive your business forward much faster than recently possible due to the financial crisis of 2008 and recovery therefrom.

Risk and Opportunities Analysis

Have you identified and assessed your enterprise wide risks?

What have you done about the more significant risks to your business objectives? Managing risk is increasingly central to the art of business management. It is not a science. What is right for one business may not work for another in the same industry. Much will depend on the leaders of each business within the same industry.

Business Risk Assessment
Enterprise Wide Risk Assessment For Faster Business Growth With Best Use Of Business Assets

Give your managers more confidence in your company to prperly assessing all the signiciant business risks to your organisation.

There is a risk to every business decision you make. Systematically look at all the risks across your business to enable you to focus your limited resources on the options most likely to boost your business performance, productivity and profitability.

Armed with the right risk management tools and techniques, risk knowledge and business intelligence you can manage risk more cost effectively more successsfully.

Read more

How to monitor risk management plan

Evaluating risk management action plan

Marketplaces Exhibitions
Save Money Risk Magazine

#BusinessRiskTV #ManagingBusinessRisk #EnterpriseRiskManagement #RiskManagement #Governance #Risk #Compliance #GRC

Are you confident you are managing all significant business risks cost effectively

Mitigating Threats Maximising Opportunities

Improving business performance with BusinessRiskTV.com

Taking risks is critical for heightened business success. Too much or too little risk taking exposes an enterprise unnecessarily or restricts business performance unwittingly. Missed opportunities can be as expensive as massive business losses.

New Business Strategies Are Increasingly Important To Be More Successful For Longer

Guide To Business Enterprise Risk Management ERM

Risk Appetite and Risk Tolerance

contact us for more information on risk taking with less uncertainty with businessrisktv

Enter code #RiskTaking

Minimised Threats Maximised Opportunities

Strategic foresight consultants can help business leaders and entrepreneurs to make a success of their business regardless of the business environment. They inform the decision making process to reduce uncertainty and improve productivity.

Business Opportunities and Threats

Business Threats and Opportunities Live

Understand the threats and opportunities in front of you. Make decisions now to protect your business better and grow it faster. Identify evaluate and manage risks to exploit the creative insight of your existing employees to become more productive and more successful.

Business Risk Partners

BusinessRiskTV Risk Partners

BusinessRiskTV works with partners and clients to maximise the opportunities and minimise the threats to business objectives.

BusinessRiskTV Mitigating Threats Maximising Opportunities