Organization of your business is always associated with certain risks. Any entrepreneur calculates such moments in advance. An enterprise risk assessment should be carried out in advance, even at the stage of drawing up a business plan. A document such as a business plan does not exist by chance. It is he who makes it possible to visualize all the possible problems that may meet on the way. The risks of the enterprise cannot be clearly divided, because some of them have no boundaries.
For example, it is very difficult to separate investment risks from financial ones. However, when writing a business plan, a definite clear structure still emerges. It becomes noticeable that, for example, production risks have several manifestations. In the first place, of course, is the likelihood of disasters and various external negative factors. However, behind these categories lies an internal cause of risk - a halt in production. Such a stop may occur for various reasons. Risks of the enterprise associated with the shutdown of the organization are associated with financial risks. The company may stop producing products due to lack of funds. It can also happen due to suppliers. Such moments must be foreseen before the company begins its activities.
At the very beginning, the entrepreneur takes over the financial risk management of the enterprise. A little later, he may already hire professionals. One of the most unpredictable items on the list is the risks associated with the actions of the authorities. It would seem that a crisis in the country is not expected and the political system is unlikely to change. However, laws may be signed at any time to limit the company's work in a particular area. It is difficult to calculate such risks of the enterprise, therefore businessmen put the characteristic "minimum probability" next to this item.
Banking risks are associated with loans, debts, as well as abuse of banking structures. To minimize the likelihood of suffering from the activities of these organizations, it is necessary to calculate the credit debt and not take an excessive amount of funds.
By structure, enterprise risks can be simple and complex. Complex ones are those that consist of intersecting simple factors.
An assessment of the likelihood of any risk cannot always be accurately established. For example, in the case of suppliers it is better to always have a fallback option in order to continue activities. You cannot rely on one organization, no matter how impeccable its reputation. There is always room for the human factor and force majeure circumstances. Some risks do not miscalculate at all. For example, starting a business in a quiet area, you can not take into account the probability of criminogenic situations. But after some time, the situation in the area may change.
Randomness is also a risk item, but it is usually not taken into account. The minimum risk calculation consists of several points. First of all, it is necessary to check the remoteness of the enterprise from roads and sources of raw materials. This can be very important. The same applies not only to enterprises, but also to shops, for which the wrong location can be disastrous. The attitude of local authorities is another important point, the importance of which is understood by every experienced entrepreneur. It is also necessary to find alternative sources of raw materials or suppliers of products so as not to depend on one manufacturer. The proximity of utilities must be taken into account. Remote communications will cause additional costs. A good help in risk management can be a SWOT analysis, which will identify possible threats to the enterprise.