RISK MANAGEMENT FOR SMALL BUSINESSES

Risk management applies to many aspects of a business. Your business is subject to internal risks (weaknesses) and external risks (threats). Generally, you can control internal risks once you identify them. However, external risks may be out of your control Risk is something which is inherent in almost all business functions and decisions. Therefore, it is essential that organizations identify the risk areas in their business as well as implement appropriate risk management strategy to eliminate or reduce the negative impact of a risk as well as keep reviewing the risk management strategy implemented in order to ensure that the risk management strategy implemented is effective. The monitoring of risk becomes all the more imperative in case of small sized businesses as they have access to limited resources and funds and thus tend to be exposed to a greater extent to a number of risks and the related harmful effects. Thus, the report focuses the ways in which small business owners can manage their risks and the strategies that need to be implemented by them in order to deal with the different types of risks.