Minimizing Risks in Business

Risks from the inside are way more dangerous than outside risks. People inside your company know more about the business, giving them chances to look for possible ways to benefit themselves more than the company. However, assessing and eliminating these risks are just as systematic of avoiding outside risks. Here are some important pointers worth considering.

• Treat employees as business partners – establish rapport. Share your vision to the employees and make them feel that they are part of that vision. Also, prove that they really are the company’s important assets.  When the company achieves or exceeds the target income, it could be best to give bonuses. Acknowledge the most hardworking department, and pick the best employee. Put some monetary value to these acknowledgments; it will be worth pursuing to others.

• Cross-train employees – this is actually practiced by almost every company. However, if you are just handling a small business, this might seem unnecessary, which should be not. The smaller the firm, the better to cross-train its employees.  When an employee handling a specific production task is out, and other knowledgeable personnel are also doing a vital task, the company should have a second person to step in and fill the vacancy. If, due to size of company, cross-training seems impossible, conducting an extra weekly or bimonthly meeting would do to update your employees.

• Utilize services of an internal control or management consultant – independent consultants spent years on education and experience on just a specific field; thus, they often know better than general managers about control. Also, an outsider with no connections to the company could view the entire concern more subjectively, making him more responsive to areas of improvements he would see.

Having the best manpower behind is the requisite of being an effective entrepreneur. When you have all your people’s dedication, risks from the outside could easily be determined and...