We say it all the time, and we’ll say it again – running a business is risky, and you, as an entrepreneur are a risk taker. Although, it can be possible that unnecessary risks become an obstacle and serve no benefit to uplifting your business. How do you pinpoint the risks you’re taking so that you can point them to the door? Here are some types of risks you may be running into.
- Strategic risks - If the strategies behind the process of your business are not effective or sustainable, you could risk staff burnout, confusion among your clients, and wasting precious time to handle tasks that need to be higher up your business’ or department’s list of priorities.
- Compliance and regulatory risk - A large part of owning a business is being aware of the laws and regulations surrounding owning a business in your field, and in your area. Make sure that your business is up to code in the capabilities, processes, practices, and training its employees, or it may cost you fines, or even worse–your business.
- Financial risk - Financial risk is a type of risk that encompasses the many types of risks related to a company's capital structure, financing, and the finance industry. These include risks involving financial transactions, such as company loans and exposure to loan default, not having enough cash to meet all financial obligations by the due dates of the accounts and more.
- Operational risk - This issue is defined as the risk of loss resulting from inadequate or failed internal processes, people, controls, systems or from external events. In other words, it’s a risk that happens from the inner workings of a business’ functions.
Processology can assess and help you break down the risks that are in the way of your business’ success. Contact us today!