Business Management Risks

People these days turn to business when they want to earn. This has been pretty much influenced by social media articles that advocate that there is no need for a degree to become a millionaire or even a billionaire. While that is certainly true, light also needs to be shed on the amount of risk these people took to turn their idea into reality. After all, if there were no risks, everyone will probably go into business.

Risk can be defined as the probability of a negative outcome occurring which outweighs the benefits if not preempted. That’s why it would bode well for any business to prepare for any unforeseen circumstances. There are several kinds of risk and if you’re planning on going into business or are already part of a venture, you’ll benefit from knowing what each of these are.

Physical Risk

This is the most common and most obvious kind of risk but it’s also the one most easily prevented.
What kinds of hazards fall under this risk?

  • Fire
  • Natural disasters
  • Property damage

 

These are the common problems one faces which businesses should preempt. How?

  • Upon rental or construction of a building, be sure that it is completely safe. Floors, walls, beams, electrical wiring and plumbing should all be checked prior to occupying a place or should be planned well in case building an office.
  • Fire alarms should strictly be installed in key locations. While these are required by government offices, it is a known fact that not all buildings comply.
  • In the event that your business deals with hazardous materials, proper equipment and training should be provided. Likewise, key rescue teams should already be on your speed dial and their numbers should be in strategic locations around the office. In some guides, these are listed under a separated category as location risks.

 

Human/Social Risk

Social engineering is one of the larger problems the world is facing now. People can easily exploit others who are ignorant in order to gain valuable information or worse, access to systems they shouldn’t. Alcoholism, sexual harassment and drugs are also common workplace problems.

How do you prevent this?

  • Upon signing of the contract, each employee should be briefed on information security best practices in order to keep risks to a bare minimum.
  • Audit workplaces from time to time. Check that employees keep their files locked in a desk drawer or cabinet and that there aren’t any files kept in plain sight. Also keep an eye out for passwords being kept under keyboards or on sticky notes on the monitor.
  • Make employees understand and explicitly sign that there are repercussions for going to work under the influence of drugs or alcohol. Likewise, emphasize that there is zero tolerance for harassment across all employee ranks.