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When starting your own business a number of risk factor arises. Initially the type of business you choose with respect to your finance and threshold level. To do this, one should start with feasibility analysis, such as SWOT analysis, PESTLE analysis, PORTER five forces analysis, these are some of the tools which could help the investor to make a strategic decision.
Once you get positive numbers the second step is to create boundry of your business operation at broader level and moving down to top-bottom approach and apply risk assessment at each level to identify risk and apply response strategies on those risk.
hope it will help
Risk assessment is a prerequisite to risk management. Risk management involves the ability to predict risks, identify risks and develop strategies to effectively counter these risks that threaten the success or survival of your business. The risk management plan is an integral part of any startup business plan. Understanding the potential risks of the business and figuring out ways in which one can reduce the impact of these risks is essential to maximizing the chances of succeeding in the world of business.
The answer for question "How can you begin to assess the risks of starting your own business?" is by Identifying Major Risks. This requires the entrepreneur to research the industry and study risk patterns. In other words, you need to learn from the mistakes of the businesses that you will be competing with soon. The major risks may be all or most of the followings: 1) Financial Risks, 2) Legal Risks,3) Operational Risks and/or Environmental Risks,4) Strategic Risks.
After that owner should start the process of risk evaluation by scaling the risks according to a) The Chances of the Risk Occurring, b) The Major Consequences of the Risk.Then by grading the risks, one will be able to prioritize the ones that are a bigger threat to the business.
+ Risk Assessment is formal procedure to indentify and understand the overall critical process / function of the organization.
+ Risk Assessment procedure will guide us to prepare step by step / stage by stage process and each stage and resources may used to do the process.
+ Resources like Manual, Machanical ,Electrical & Chemical used for which severity of the hidden risk involved to be identifed and it evaluvated accordingly to reduce the risk level by desire what are risk matigation control method Administration and Enegineering to be adopted.
SWOT Analysis
PEST Analysis
Market study
acknowledging and embracing risk is a fundamental aspect of starting a new business. There will always be a certain level of uncertainty that you will have to prepare for and deal with when you work on establishing a startup business.
Anticipating Failure
Identifying Major Risks
Financial Risks
An as Industrialist, I must begin to assess risks that might affects critical areas in5 M's of my own business. Identify and eliminate/mitigate future challenges in business such as Financial, Fire, HSE and Quality Risks.
Best preferred way to assess the business rsik to carryout SWOT Analysis, list out bsuiness process, identiy hazard / risk and then anlysis oppurtunities for managing risk.
Researching the area i want to start a business in so that i become aware of the pros and cons of such businesses. I will draw a business plan so that i can sort funding. Getting a mentor who has been in business would also be key. Be prepared to go the extramile in order to succeed.
During the stating of own business, risk factor will be calculated based on Market review.
Firstly i need to carry a Risk Assessment by identifying some of the major risks that are likely to impact the startup and study risk patterns. In other, you need to learn from the mistakes of the businesses that you will be competing with soon.
Risk Assessment is formal procedure to indentify and understand the overall critical process / function of the organization.
Risk Assessment procedure will guide us to prepare step by step / stage by stage process and each stage and resources may used to do the process.
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