Managing the risks

By Drum Digital
12 November 2013

Knowing how to manage risks is important for business.

If you’re going to be an entrepreneur, then you will be facing many risks. Some you’ll know of but others might just come up suddenly and surprise you. Either way, you need to figure out what your approach is going to be when it comes to risks.

You have three main choices with risk:

Accept the risk and its consequence

Think long and hard before choosing this strategy. Would your business survive financial loss? Yes, you might no be able to afford insurance right now, but make sure you have it high on your ‘To do’ list when your business starts making money.

Take out insurance to protect against the risk.

If you can afford it, then this is definitely the way to go. Speak to your insurance company about what cover they can offer you. Having insurance will also make you feel less stressed about the risks.

Manage the risk to reduce or eliminate it.

Most businesses use a combination of the second and the third strategies. Insure your business against the major risks, but try as much as you can to minimise or eliminate risks

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