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Business Jeopardy: Managing Risk In Your Startup

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Business Jeopardy: Managing Risk In Your Startup

Nothing ventured nothing gained is the motto of many a successful business person. Unfortunately, risk doesn’t always equal reward. In fact, it can quite easily go the other way, and you can end up losing the considerable time and financial investment that you have sunk into your company, sometimes very quickly. Luckily, there are some things that you can do to balance this risk and give your startup a fighting chance of being a long-term success. Read on to find out what they are.

Technological risk

Obviously, one of the biggest risks the most startups face currently is that of technology and data security. This is such a problem because of the widespread use of the Internet, email, and the cloud for business communication and storage.

Of course, this digital tech is great because it makes thing instantaneous and keeps the cost of a startup way down. However, by using such tech, you also increase the risk of data breach. Something that can be hugely damaging to your company’s productivity, and to their reputation. Especially if your customer’s personal information is compromised.

Despite this, the use of digital tech is so widespread that shunning it would be akin to business suicide. That means you have to find another way of dealing with the risk instead. This includes having watertight digital security software, as well as educating your staff on any potential issues they could create by using unsecured networks, bad passwords, or inadvertently responding to phishing scams.

Situational risk

Situational a risk is also an issue that you need to be aware of in relation to your business. This applies, in particular to companies that operate in a location that is currently undergoing large-scale political and financial instability.

It is true that such situation can often be profitable if you manage the risk correctly. To do this, you can use a political risk consulting company that specialises in assessing the current political situation in a volatile country. You can then put this information to use in guiding your decision-making process and ensure that you are aware of any major risk that may occur, and that you can plan and protect against them.

Your employees

Employees are often the biggest assets a company can have. Sadly, they can also post the greatest risk as well for a number of reasons.

Firstly, it is vital to remember that your company’s reputation is incredibly important to how customers perceive you. That means it vital that you employ people that are in line with this both in the workplace and in relation their conduct on their own time.

It is also crucial to understand that while your employees are working for you, you have certain legal and moral responsibilities to look after their health and wellbeing and protect them from risk.

That means you must warn them of possible risk to their health when compiling work-related tasks, as well as provide protection against this wherever possible. This may take the form of protective clothing and tools, and even training in risk management in relation to their role.

I am the founder of Startup Today. I am the main writer and have put in many hours of work into creating this blog. If you want to find out more about me then lets get in contact.

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