Every business decision involves risk. Often you will rely on past experiences and gut feeling to identify and control these risks. But to better protect your business, take some time to learn about risk management.
Having risk management processes in place can help you feel more confident when you make business decisions.
What is risk?
Risk is the chance of something happening that will affect your business. A risk can be an opportunity or a challenge, depending on how well you manage it.
As a first step, understand the types of risks your business may face and why it's important to manage them:
What is risk management?
Risk management is a process that deals with uncertainty surrounding business decisions. When you practice risk management, you try to reduce things that may have a negative impact on your business. You also look for opportunities that can have a positive impact.
A good risk management process should include these steps:
How can I use risk management in my business?
To get started, find out about risk management practices and how you can use them in your business. You should also talk to others involved in your business (including your employees and your customers) to work out the best way to manage risk in your business.
Find out how you can start managing risk in your business: