How do you manage risks when you do business?

[stevenuk]

How do you avoid risks or reduce risks when you do business? For example, did you adopt letter of credit?

 

[tory15018]

Risk taking is an important part of business. But it is necessary as well because by taking risks you can introduce something new in your business and stand apart from the crowd. This would help increase your companies reputation and would attract more customers.

 

[Geoff T]

But you can take ACCEPTABLE risks, rathar than just "throwing it out there"!

Letters of credit are one option... loads more exist...

 

[finejewellerys]

Firstly, business exisits with risk. no matter how you manage.YOu can only reduce the risk of the business, but couldn't remove it completely.and as seller, it will afford a bigger risk than buyer. Only this the buyer will trust the seller.

 

[James Greg]

I agree with Tory that there are risk In every business. All the businesses are running through blind trust in all over the world. If you don't trust anyone, you can't make good business relationship. Letter of credit decreased your business risk but not completely.

 

[Chris Ashdown]

Takeing the time to fully read and understand any contracts before signature and understanding what the risk is with what you are signing

Just have a look at the peninsular post on this forum to see how all types of people signed in haste without reading the small print and regreted it latter

Relationships are built on trust, but trust must be earned first

When you start up 10 hours reading a business start-up book is worth months of learning on the job and significatly helps cashflow

 

[Deleted member 138423]

Don't take a risk, don't get ahead.
Consider calculated risks to forge ahead.
If the risks are heavy, then cover your backside in case they don't work out.
Get a 'feel' for trusting your instincts - these are often not considered!

 

[FranchiseBasket8]

There is no business or a business deal with out risk. No business can be handled with out taking or managing the risk in the business. There are many ways of handling risks and also many types of websites providing the management of risks in various categories. The best way that I heard about the risk management consists of four steps as Accepting the risk, Transferring the risk, Reducing the risk and Eliminating the risk.


food franchise
internet franchise

 

[Javed55]

The best answer for this question can be only given by an expert businessmen...who are found to be very sharp and correct to their business terms.

 

[topadison]

Firstly, business exisits with risk. no matter how you manage.YOu can only reduce the risk of the business, but couldn't remove it completely.and as seller, it will afford a bigger risk than buyer. Only this the buyer will trust the seller.

Yes,the larger profit,the more risk you should take.

 

[Iranda]

With business, there is always a risk. I think it is important to have a buffer just in case things go down hill.

 

[Scottie22]

If you are running a business risks are a part of the package. However, it is better to test waters and proceed one step at a time if you don't have enough buffer to tide over the rough times

 

[suitstand]

Yes i am agree with you sir.

Thank you to give us such valuable information.

 

[tonyelectric]

There is no business or a business deal with out risk. No business can be handled with out taking or managing the risk in the business. There are many ways of handling risks and also many types of websites providing the management of risks in various categories. The best way that I heard about the risk management consists of four steps as Accepting the risk, Transferring the risk, Reducing the risk and Eliminating the risk.


food franchise
internet franchise

With great profits comes high risk. I agree with you that transferring the risk is very important.

 

[PragmatIT]

At the risk of sounding like a consultant. I thought I would add my thoughts as I do a lot of risk management in my work on information security within organisations.
All business face risks. The key is to identify the risk and put them into perspective. A risk is made up of 2 elements Liklihood and impact.
I am at risk of being knocked down by a bus. The impact is high but the Liklihood is low so depending on how we score these then the net risk = (impact x Liklihood) will then be low.

Once we have identified all the risks and given them a score we can then concentrate on the high net risks and apply mitigating actions to transfer, reduce or accept the risk. this then gives each item a residual risk score which should be then reviewed on a regular basis.

 

[stavenmorris]

Important part in business is taking risk. Without risk you cannot get benefits and also believe in yourself. If you are doing business then you cannot reduce the risk. In business,if you cannot believe in any one and you cannot make nice business.