Risk Management: Inspiration, Motivation, Preparation

Image by Eustaquio Santimano via Flickr If you’ve been keeping score at home, you know that the risk management process has three basic steps – 1) identify risks and opportunities, 2) evaluate the risks and opportunities and 3) plan for risks and opportunities. However, there is some work that needs to happen before you get into the nuts and bolts of managing your risks. . This week let’s talk about what needs to happen before the process begins. There are some basic activities: inspiration, motivation and preparation. Over the last few months I’ve written several posts dealing with the “pre-activities”. […]

The Value of Risk

Image via Wikipedia In my opinion, few business people recognize that risk has a very real (and substantial) value. The lack of recognition is understandable – it’s hard to put a convincing numerical value on a risk that may or may not occur. But every now and then, an event comes along that provides a quantified glimpse of risk’s value. I was a witness to one of those rare events. Here’s the story…

Should You Go Formal or Informal?

If you’ve been keeping score at home, you’ve noticed that I’ve used the word ‘formal’ quite a bit. In fact, in one poorly worded post I suggested that “the (risk management) process doesn’t have to be formal” and got called to the carpet in a comment by Kristen. She was absolutely correct in stating that the process really does have to be formalized – meaning performed consistently and methodically – but doesn’t have to be complicated, expensive or burdensome (a point I attempted, and failed, to make). . That exchange was a good example of how the word ‘formal’ can be […]

The Solution to Every Decision

Here’s a Quiz For You What do these decisions have in common? Is it wise for me to invest in new equipment for my business? Should I respond to the irate customer’s email or just let it go? Is the best route turning left, turning right or going straight? Should I have beef or chicken for dinner tonight? Should I wear the blue shirt or the green shirt today? . Give up?

Risk’s Impact on What?

Image by Jayson Ignacio via Flickr Let’s drill down a bit into risk evaluation – step 2 in the risk management process. It’s standard practice to evaluate a risk or opportunity’s impact and rank it. You can rank the impact on a scale of 1 to 5, with 5 being the highest impact. Or you can rank the impact “high”, “medium”, or “low”. Or if you’re utilizing financial models you can calculate the risk’s impact and represent it in terms of your local currency. . Seems very straight forward, right? It is, but let’s take a step back and ask […]

Home-based Business Risk

Image via Wikipedia My girlfriend Amy has a home-based, small business, working as a professional wedding and portrait photographer (one of the best in my very-biased opinion, but check out her site and judge for yourself.) I work with Amy as a PT photographer on weekends and also help her out on the business side of things. As I’ve learned the in’s and out’s of a home-based, single person business, I’ve been paying attention to its similarities and differences in terms of risk management.

39 Examples of Small Business Risks

Image by ShashiBellamkonda via Flickr It’s been difficult to come up with topics this week.  The situation in Haiti seems to consume the majority of my thoughts when I’m outside the office. Make a difference. Please donate cash to the relief agency of your choice. . I thought I’d take a look at my Google Analytics page and see what people are searching for when they find my website. There is a definite trend. Many of the searches involve the word “example” or are geared toward identifying potential risks for businesses. Let’s talk about that…

How To Manage Small Business Risk

Image via Wikipedia Over the last couple of months, I’ve walked through the process for small business risk management with you. I thought it would be a good idea to capture all of the “how to” posts in one place. . Take a look at the compilation. My hope is that after reading all the posts below you have a general understanding of how to manage risks and opportunities for your small business. More importantly, I hope you see the benefit of incorporating formalized risk management into your daily business life.

Mitigate Risks, Exploit Opportunities!

Image via Wikipedia It’s been a while… Let’s get back to basics of the risk management process. . We’ve covered the first two steps – identifying risks and evaluating them. You now have a great list of your risks and opportunities, in order of their potential impact on your business, but your work isn’t done yet. Having the list helps you anticipate which risk may have the biggest impact on your business, but if the risk becomes reality you will still be reacting to it during a potentially stressful situation.  . Since clear, thoughtful thinking is difficult during a crisis, […]