Business risks will be the likely dangers that the business enterprise may encounter if preventive measures or safety precautions are certainly not set up to avoid them. When a business experiences a specific business risk, the entrepreneur ought not point finger at witches, ghosts or enemies. They happen because of poor planning and failure to put out measures in managing these risks. The two main main forms of risks that a business enterprise is likely to face.
1. Direct risks- This is a form of business risk that may entirely collapse a company enterprise. They directly change the enterprise and halts down all of its business activities. Due to the harshness of direct risks, entrepreneurs should set out preventive measures of curtailing them. Examples of direct risks include theft, fire, bankruptcy, misuse of capital through irresponsible expenses etc.
2. Indirect risks- This type of sécurité slowly causes the collapse in the enterprise. If extreme care is not taken, it could be hidden from entrepreneurs. Similar to a slow poison, indirect risks if left unchecked can ruin an enterprise enterprise. They can be quite difficult to regulate and are the cause of greater percentage of business losses. Types of indirect risks are insufficient sales because of faulty or poor products, wrong business locations, currency inflation, introduction of new taxes, changes in labour laws etc.
Business risks whether direct or indirect might be managed or controlled. The entrepreneur should be very vigilant and alert in his supervisory role. There has to be regular or routine check of stocks and finished products. Merely the entrepreneur cannot accomplish this work. An accountant or book keeper needs to be employed and assigned to look for the accounts of your business on a monthly basis or even daily depending on the scale of the enterprise or perhaps the rate of purchase of products.
Also, the entrepreneur has got to increase vigilance and security by beaming up the security such as employing security personnel and installing security devices. These measures is needed minimize or entirely stop the cases of theft.
Most of the fire outbreaks that happen in the enterprises are as a result of faulty electrical connections and appliances. The entrepreneur must use a qualified electrician to do each of the electrical connections or wiring in the enterprise. He has to replace all weak or faulty wires along with other electrical appliances to avoid the likelihood of fire outbreak.
Low sales and patronage from the products of the enterprise may be on account of several factors. Paramount among these is due to the low quality nature of the products and 75dexqpky business location. The entrepreneur must undertake practicing for his workers while constantly checking for product quality. He needs to use quality and durable materials to the production of his products. Furthermore, if wrong business location causes the drop in sales of products, the entrepreneur should relocate the business into a more promising area in which there will be high patronage for his products.
Inflation and constant modifications in labour laws could affect the achievements an organization enterprise. An entrepreneur needs to be always alert to these changes. He can do that by maintaining in contact with the appropriate ministries to understand what new changes have been planned that could affect one’s business.
It will take a great deal of some time and efforts for entrepreneurs to put together enterprises. Owing to this, they must vigilantly guard against any internal or external dangers that may result in their collapse. Identifying and controlling potential threats to businesses is definitely the guaranteed way to succeed.