Whatever that you are working on, whether it be a business, a project, or something else, it is of vital importance that you identify and further manage possible risks that you take on. If this isn’t done correctly, there are numerous consequences that you could face, some even lethal to your business.
Take a look at the examples detailed in this Lloyd’s Register Foundation Report. After numerous deaths in the US caused by the intentional contamination of Tylenol capsules (Paracetamol) in 1983, the product was removed from the market and then relaunched in a new ‘tamper-proof’ format. Sales might have dropped from 37% to 7% of the market share, but through effective risk management, the company regained its market share within one year whereas nuclear power, after the disaster in Chernobyl, still hasn’t been properly managed with public concern as high as it ever was even with the new safety-focus in the industry.
Finding an adequate response to risks is only possible if they are assessed correctly, and then action is taken to reduce them. We talked about assessing risks earlier this week and now it is time to talk about deciding on the actions to take. This is where you should start:
1) Competition analysis
2) Identify and evaluate market trends
3) Know yourself
4) Check your family's budget
5) Research economy
6) Business plan