Week 4 - Understanding the good concept and tools for risk management and managing risk as an entrepreneur.

 -ALI HUSSEIN M. AHMAD. (TP077707)


The concept of risk management involves identifying, assessing, and mitigating potential risks to minimize their impact on business objectives.


-Risk Identification: This involves identifying potential risks that could affect your business. Techniques such as brainstorming, risk workshops, and risk registers can help in identifying a wide range of risks across various aspects of the business.
-Risk Assessment: Once risks are identified, they need to be assessed in terms of their likelihood and potential impact.

(Tucci & Stedman, 2023)
As an entrepreneur, managing risk is needed for the success and sustainability of your business.

-Understand Your Risks: Take the time to identify and understand the risks specific to your business, considering both internal and external factors that could impact your operations.

-Develop a Risk Management Plan: Create a comprehensive risk management plan that outlines how you will identify, assess, and mitigate risks. Assign responsibilities and establish clear
Seek Professional Advice: Don't hesitate to seek advice from risk management experts, financial advisors, or legal counsel to help identify and address potential risks facing your business.

(AIContentfy team, 2024)


References:

Tucci, L., & Stedman, C. (2023, September). What is Risk Management and Why is it Important? TechTarget. https://www.techtarget.com/searchsecurity/definition/What-is-risk-management-and-why-is-it-important

AIContentfy team. (2024, March 28). How to manage risk as an entrepreneur. AIContentfy. https://aicontentfy.com/en/blog/how-to-manage-risk-as-entrepreneur



-Alhussain Ali Murshed TP078072



Entrepreneurial success depends on risk management, which necessitates a calculated strategy to recognize, evaluate, and reduce possible hazards. Entrepreneurs start by being aware of a variety of hazards, such as changes in regulations and market conditions, as well as operational difficulties. They prioritize actions according to severity and quantify these risks using techniques such as probability-impact matrices and risk heat maps.

Risk avoidance through diversification, risk reduction through enhanced processes, and risk transfer via insurance are all examples of effective risk management techniques. Agility in responding to changing risks is ensured by continuous monitoring through the use of risk registers and key risk indicators.

The ideas and best practices that risk experts offer add significant value to the arsenal of entrepreneurs. In a changing business environment, entrepreneurs can protect their endeavors, grab opportunities, and maintain long-term success by adopting proactive risk management."

 

Risk identification and assessment, risk avoidance and transfer, and ongoing monitoring and adaptation are among the skills that entrepreneurs excel in. Decision-making skills and risk resilience are strengthened by expert counsel.

References:
Tucci, L., & Stedman, C. (2023, September). What is Risk Management and Why is it Important? TechTarget. https://www.techtarget.com/searchsecurity/definition/What-is-risk-management-and-why-is-it-important

-Ahmed AbdulAziz Omar Baflah (TP078277)

Entrepreneurship generally entails a certain degree of risk-taking. As such, entrepreneurs understand that they must be willing to take a risk in pursuit of potential profits.

Before taking a risk, an entrepreneur must consider the different types of risks which include strategic risk, compliance risk, financial risk, operational risk, environmental risk, employee risk management, political and economic risks, and health and safety risks (HAYES, 2022) (team, 2024). Risk management becomes more important if your business wants to try something new, for example opening new stores globally or a launch of a new product or even a breakthrough. Competitors might be able to achieve similar heights making your product redundant, leading to a crash in prices (entrepreneurs, 2015).

While entrepreneurs should clearly strive to prevent or avoid certain risks, they should also remember that some risk is inevitable, necessary, and—when well-managed—beneficial in the long run.


References

entrepreneurs, i. (2015, 11 05). Manage risk. Retrieved from infoentrepreneurs: https://www.infoentrepreneurs.org/en/guides/manage-risk/

HAYES, A. (2022, November 13). What Risks Does an Entrepreneur Face? Retrieved from investopedia: https://www.investopedia.com/ask/answers/040615/what-risks-does-entrepreneur-face.asp

team, A. (2024, March 28). How to manage risk as an entrepreneur. Retrieved from aicontentfy: https://aicontentfy.com/en/blog/how-to-manage-risk-as-entrepreneur

 

 -Faris Mohammed Ata Abulathou (TP077862)

Risk management is the process of identifying, assessing and controlling threats to an organization's capital, earnings and operations. These risks stem from a variety of sources, including financial uncertainties, legal liabilities, technology issues, strategic management errors, accidents and natural disasters.

It is important for entrepreneurs to understand all the different risks, including operational, legal, financial, commercial, and reputational threats. A risk management plan that describes the steps for identifying, assessing, and mitigating risks is vital. This approach should be regularly evaluated to ensure that it remains suitable in the event of different circumstances

An important first step is to perform risk assessment in order to identify the likelihood and potential effects of threats to your business, thus reducing the risk of leading the business to a downfall.

Managing risks well not only keeps the business safe but also opens up ways to grow. It includes making good decisions and educated ones. Through the ability to select the course of action with the best chance of success, risk management is a tactical instrument that assists entrepreneurs in making decisions about their next move.

 

References:

Stedman & Linda T. (September, 2023). What is risk management and why is it important? TechTarget.

https://www.techtarget.com/searchsecurity/definition/What-is-risk-management-and-why-is-it-important


-Basem Ghasan Mansoor Ali (TP076027)

Risk management is an absolute must for entrepreneurs to deal with the unpredictable business environments that they may face, and not only that, but it also involves identifying and analyzing the risks and figuring out how to get the highest possible reward with the lowest possible danger for the business (Kenton, 2023).

As an entrepreneur, there are many risk management tools & techniques that can help you such as:

1. SWOT Analysis, which is used to analyze and measure the strengths, weaknesses, opportunities, and threats which gives you a clear picture and helps you in strategic planning (Brown, 2020).

2. ProjectManager, which is a software that offers many risk management tools like project planning, assigning and sharing details about risks with your teammates, sharing files, scheduling, tracking, etc (Westland, 2019).

3. Brainstorming, brainstorming is the first step that every entrepreneur does before implementing a project. A good brainstorming must include all the possible risks that may impact the project’s success (Brown, 2020).


References

Brown, L. (7 11, 2020). Risk Management Tools & Techniques in Project Management. Retrieved from Invensis Learning Blog: https://www.invensislearning.com/blog/risk-management-tools-techniques-in-pm/https://www.invensislearning.com/blog/risk-management-tools-techniques-in-pm/

Kenton, W. (14 6, 2023). Risk Management. Retrieved from Investopedia: https://www.investopedia.com/terms/r/riskmanagement.asp

Westland, J. (3 10, 2019). The Best Risk Management Tools & Techniques for PM Pros. Retrieved from ProjectManager.com: https://www.projectmanager.com/blog/risk-management-tools-techniques

 

 

-Abdullah Mahmoud Alghandour TP077275

A business person has to achieve efficient risk management to the firm to survive in the business world. An approach anticipatory is based upon identification, evaluation and ranking the possible risks using techniques of risk diversification, probability-impact matrices and the risk heat maps. For that reason introducing flexibility and adaptability to operations is compulsory and it requires comprehensive contingency planning together with updating strategic plans on a regular basis to promptly respond to unexpected events. Expert knowledge and trends research for involved customers to make informed choices and risk prediction are the key factors that will be crucial.

The powerful risk management involves multi-dimensional approaches, which consist of pre-emptive planning, strategic decision-making and continuous monitoring and adjustment. Leaders in this challenging period can effectively cope with the resistance by using the key elements stated above where people can comfortably adjust and protect their businesses as they create new jobs. Besides, it helps the business in protecting from the potential losses, and thus, optimizes the overall performance and competitiveness of the business in the dynamic market environments. Distinctively, risk management acts to create the set ground for a venture that will have been in future witness to environmental changes.

References:

Forbes. 2023.

https://www.forbes.com/sites/keithkrach/2023/03/24/4-ways-entrepreneurs-c an-manage-risk/

Harvard Business Review. 2012.

https://hbr.org/2012/09/are-entrepreneurs-really-more

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