Business faces some kind of risk in normal course
and that is inevitable. What is important is to identify and understand which
risk turns out to be a strategic one. Normally such risks arise due to a
failure of one or more of your business strategy. Here are three areas business
strategist must concentrate for objective risk analysis:
1. Reputation:
This risk is the most critical. Your reputation is your business. If it is
damaged your business will never recover. You must ensure that the name of your
company, its processes, its products and its image remain always above censure. Years ago a
Chinese milk powder company went out of business when its products were found
to contain chemicals injurious to human life. When this happens business must
take every effort to neutralize bad press, news or propaganda while at the same
time making amends to the damages already done. Hence, protecting reputation is
part of business strategy.
2. Regulatory:
In the case of risk of reputation business has control over what it can do
about it; in regulatory risk business faces situations beyond its control. As a critical risk
regulatory aspects can be debilitating. Blackberry a mobile and smart phone
device sold by Canadian company Research in Motion (RIM) has to face spate of
restrictive regulations in several countries. Effective negotiations,
compliance with regulations along with ensuring that such regulatory rules do
not recur are few of the risk control measures recommended to a business
strategist engaged in risk analysis.
3. Technology:
If you are in IT you know that technology is changing hour by hour. Today technology is the major
risk for businesses in internet and communications sector. Look at how
Microsoft was losing its internet search engine market. Google’s adoption of
Android Operating System gives endless hours of worry to search its engine
Bing. Updating and bringing still better technology are measures to neutralize and
must be incorporated as essential feature in business strategy.
Cheers!
Muthu
Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business
Strategist
No comments:
Post a Comment