The latest recession has reminded us all that what can happen in business and its obvious for all of us to think over about it. Every business faces risks that could present threats to its success. Risk is the probability of an event and its consequences in a business environment. And all the companies have started giving more importance to risk management programs these days.
Under the main factors of risk first comes credit risk. The pain of the credit crunch persists. According to the Small Business Association, guaranteed loans were down 30% in 2008. The second one is legal risk.There are possibilities that for faulty products or hazardous working conditions in an organization. Then there are many possibilities of concentration risks, financial risks and regulatory risks.
So in order to overcome all these, risk management programs should be implemented.
This includes 5 steps First you need to work out how people could be harmed. When you work in a place everyday it is easy to overlook some hazard. Walk around your workplace and look at what could reasonably be expected to cause harm. Ask your employees or their representatives what they think.
For each hazard you need to be clear about who might be harmed; it will help you identify the best way of managing the risk. Having spotted the hazards, you then have to decide what to do about them. Putting the results of your risk assessment into practice will make a difference when looking after people and your business. Review the assessment and update it regularly.
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