Dec 16 2016

Risk Management

Published by at 1:33 pm under Perth Business News

If you aim to becoming a successful and smart entrepreneur, then you know that sometimes you need to take risks. You invest a lot of time and money on marketing data, and you know what the right choice is most of the time. Still, every now and then you are forced to take a risk. Sometimes it can pay off big and other times it can destroy your business. That is why you need to practice risk management.

If the stakes are too big, you obviously should never take a risk. You need to know what kind of blows your company can take, and never take a risk greater than you can afford. Calculating how dangerous a risk can be will be tricky. Especially if the risk is presented to you with only a little time to make a choice, you can add a lot to your worries.

Risk management takes this into account. You need to assume that you always have time to make an informed choice. Just because your company can survive a risk, that doesn’t mean that you should take it. You also need to check out the probability that the risk will pay off. You have to play the odds. If there is only a small chance that a risk will be successful, and it won’t pay much out, then it’s a terrible choice.

Read this to learn more about risk management: https://www.business.gov.au/info/run/risk-management

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