It is important to realize that tough times are simply part of any business cycle. One needs to plan for inevitable down times and have comprehensive risk mitigation strategies. These downtimes could be as a result of increase in raw material costs and/or logistics as well as changes in Government rules and regulations. Other contributing factors can include higher taxes, rising costs of employee benefits or changing regional, national or global economic environment.
Remember: when life gives you lemons, stir up a treat!!
Business Continuity along with Succession Planning are essential. But their key limitation is that they mainly look at how to maintain the current business workings in a disastrous event.
Risk Management on the other hand ensures that we identify, mitigate and manage Risks, so that our business can sustain (if not thrive) even in extremely adverse situations.
By mitigating potential ‘risky’ situations, we can lessen their occurrence probability and of course by managing risk, we can ensure that we are correctly evaluating all the associated impact and liability that inadvertently ensues- so that we can correctly include these projections within our business costs and profit forecasts!
Risk Management can be implemented to develop contingency plans and prepare for any eventuality. Controls that are put in place to avoid/mitigate risks may not show immediate returns but do go a long way to increase profitability and maintain brand value.
About the author:
Sandhya Bhat MSc, CSSMBB, CSSE is the Knowledge Expert & Lead Editor for Macro2Micro Learning portal. You can read more about her work by visiting her website. You can engage with her via our contact form.
#riskmanagement #riskanalysis #risk #ceo #enterpriserisk #downturn #plungingprices #increasingcosts #businessdevelopment # entrepreneurship #downtime #negativebusinesscycle #blackswanevent
If you are to ask anyone- if they would like to be successful, then ofcourse they would say yes. In fact, if you are on our website reading this article, then you are definitely looking at upping your game and achieving your goals and ambition.
The question that comes up is- what stops most people from achieving success? Is it merely a luck factor? Not really- as they say, fortune favors those who work hard. But then again- this is not working about working long hours or doing tedious, undesirable tasks… this is about working hard-strategically and with a definite purpose.
Not many people have a clear sense of purpose for what it is they are doing, why they are doing it and what it is that they actually intend to achieve by their action.
Strategy is one of the most touted words in the work environment. Working SMART and using the 5-Ws principle is recommended, but few understand them, leave alone actually following those principles!! Also, many people think of SMART methodology with respect to managing projects, not conducting any and every activity…
Remember that all the key activities that you perform make up your day and ultimately your life. So, conducting ‘strategically selected’ actions is crucial to leading a successful life.
Ask yourself these five key questions about every major activity you do, and you will find a drastic improvement in your rate of success.
Question 5 does not seem important when deciding which activity to conduct, but you need to have as much clarity on how you will celebrate as you do about the activity itself.
Always, take some time out to celebrate your accomplishment. Not- just when you do something big, but even your small achievements. This helps to enhance your enthusiasm and also makes you look forward to completing the activity that you have taken up…
Be clear about your reason for doing something and then enjoy the process- your actions and the results.
About the Author:
Sandhya Bhat MSc, CSSMBB, CSSE has developed several new (under patent filing) and enhanced existing strategic methodologies to improve technology and human capital utilization, produce greater ROI on investments and streamline service delivery. She is an acclaimed author, speaker, a sought after thought leader and an avid world traveler.
#strategicthinking #settinggoals #successcriteria #activityplanning #workingsmart
As they say every leader is an avid reader. Here are top ten books that every CEO and aspiring CEO must read to develop their leadership skills. It does not matter if you are a seasoned leader in your field or a person aspiring to steer their career in that direction, if you have not read any of these top ten recommended books for CEO (Chief Executive Officer), then make it a point to pick one (or all) of these books up today. Watch on...
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