Mitigating Business Risks - 2

By Author: John Francis
Total Articles: 8
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While running a business it is very important to deal with your internal and external team. You should be clear while assigning the tasks to your team members. It is risky to assign urgent tasks to someone who doesn’t have experience in it. Assigning tasks to poor untrained resources may lead to important project failures which may come as a lack of future business order as you have not fulfilled the previous project requirements. It is also important that you hire trustworthy candidates. Make proper interaction with everyone in the team. Relationship issues may result in unexpected organizational behavior reducing the brand value in the business. If in case some quarrel happens, then it may also lead to doing unexpected fraud or theft. Some projects need to be delivered on an urgent basis to the clients. The absence of any resource at that time may affect the business deal and the pressure is created on other unexpected resources. An unexpected emergency may arrive in the family, due to which the work performance affects a lot. Many times in small companies the resources are not trained or skilled enough to do particular ...
... tasks. Time may arrive in the company where the skilled resources switch their job due to some higher opportunities. All of the above-mentioned problems lead to inconsistency in the work, which hampers a business a lot, which needs to be taken care of to run a business.

In the above paragraph, we saw the risks involved concerning Staff. Now we will focus on technological problems. The main problem observed mostly in startup businesses is that some organizations cannot afford skilled resources as they are very costly and the startup budget is many times very less. Another very important problem faced by the majority of startups is that one resource has to handle multiple responsibilities which is very much distracting leading to a lack of productivity. In some cases, the hired resources have the capacity to give the best results, but the hardware or software doesn’t allow them to perform desired tasks. Hiring experienced skilled resources is a big challenge observed in the startups because of the high salary expectations of the resources. At that time the freshers are hired and without proper training and experience, they are expected to do the tasks which become difficult.

Strategic RisksStrategic Risks

There are many problems found in the case of strategic planning. Due to lack of business knowledge and experience the director board thinks that the decisions made by them will be executed as per the exact expectations, which becomes difficult due to various parameters like lack of resources, poor financial budget, ignoring existing resources problems. There is a huge dependency on each resource working in the startup. In large companies, there are many alternate resources available to do the tasks which are not dependent on a specific resource. Considering the above factor it becomes difficult to create an exact strategy and make it successful. Many times the strategies have to be changed which affects the growth of the business. The business owner has to have a great problem-solving approach, especially in the time zone where the money oxygen is in less proportion and the company is on a ventilator. In simple terms, the director board must have a solid revenue-generating Sureshot plan to sustain in the critical phases of business life.

The name itself tells that certain external factors may arrive in the future business lifecycle, that may postpone your success growth and in several cases breaks down the confidence of the company by directly shutting down your business. One of the current external factors which are well known to us is the covid19 pandemic situation. More than 30% of startups faced a complete shutdown problem in the year 2020. The external factors can be defined as the factors on which we don’t have any control. Many such examples can be given such as political impacts, country wars, social health diseases, economic instability, cyberattacks, any natural disasters, and many more. The probability of making a successful business is directly proportional to the number of parameters taken into consideration with its proper implementation.

In the above paragraphs, we have seen the factors affecting the business growth and its lifecycle. In the next phase, we have to focus on how the risk can be mitigated with the proper planning and strategic execution. While starting a business you must have a clear purpose why you are doing your business. If you are only interested in making money, then I will strictly say that you will not get the actual deep satisfaction from your business. For consistent business growth, you must have a clear vision that will surely guide you each time when you are stuck with the question “Why do I want to do a business?” Once you are crystal clear with the purpose of your business and the problems you want to solve with your business, then I am sure that you will definitely get the passion to follow your dreams, not just money.

For the first part visit: Mitigating Business Risks - 1

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