Sustainable Growth:

New Management Model

Business Risk Management

Containing Negative Effects and Converting Risks Into Opportunities

By: Vadim Kotelnikov

Founder, Ten3 Business e-Coach Inspiration and Innovation Unlimited!

"Don’t forget, that business is like driving a car: you can go fast only if you know you have good brakes!" ~ Harvard Business Review

Three Types of Business Risks1

  1. Individual Risk

  2. Managerial Risk – speaks to the reality of uncertain outcomes that are associated with managerial decisions.

  3. Organizational Risk is a characteristic of firms experiencing volatile and often unpredictable income streams.

 

Humorous Business Plans

Financial Success

Development risk: "The more you chase money, the harder it is to catch it." ~ Mike Tatum...

Risk management strategy: "It is better to spend money like there's no tomorrow then to spend tonight like there's no money." ~ P.J. O'Rourke...  More

Two Levels of Risk2

  1. Strategic risks the issues which require companies to think on a grand scale. These risks should be tackled at board level and require strategic thinking and strategic planning.

  2. Operational risks require board involvement, but are implemented at a lower level.

 

Humorous Business Plans

Success in Love

Growth risk: "A sweetheart is a bottle of wine; a wife is a wine bottle." ~ P.C. Baudeareil...

Risk management strategy: "Adultery is democracy applied to love." ~ H. L. Menken... More

The Biggest Risk

The biggest risk is not taking risks. If you venture nothing, you win nothing.

 

"Security is mostly a superstition. It does not exist in nature, nor do the children of men as a whole experience it. Avoiding danger is no safer in the long run than outright exposure. Life is either a daring adventure or nothing," says Helen Keller... More Risk Taking Quotes

Colin Powell's 18 Lessons for Leaders

Once the information is in the 40 to 70 range, go with your gut. Don't wait until you have enough facts to be 100% sure, because by then it is almost always too late.... More

Entrepreneurial Leader: 4 Attributes

The Greatest Source of Risk

The greatest source of risk in any business is failure to understand dynamic needs of the customer or end user.

Managerial Risk

"The logic of managerial risk applies at the level of each individual, in that all trusting relationships have meaningful incentives at stake and the trusting party must understand the risks involved in the relationship. In essence, managerial risk creates vulnerability, because to trust another party makes a person vulnerable to outcomes of that party's actions."1

Managing  Five Business Development Risks

You face five risks at every stage of your business development:

  1. Growth risk

  2. Technology & production risk

  3. Marketability & competing risk

  4. Financial risk

  5. Team & management risk.

Entrepreneurial risk management approaches can help you turn these risks into opportunities... More

Project Risk Management

Project risk management analyzes the possible trade-offs between cost, schedule, and uncertainty. Risk management strategy represents some kind of rebalancing, of choosing alternative ways to deliver the same results.

10 Key Project Leader Skills

Inspirational Business Plan: Successful Innovation

Operational Plan: "Most innovators are successful to the extent to which they define risks and confine them." ~ Peter Drucker... More

 Case in Point  Silicon Valley Companies: Using Innovation Portfolio

There are four reasons why Silicon Valley companies use the portfolio approach to manage innovation.

  1. Risk Management.

  2. Visibility.

  3. Timing of New Initiatives.

  4. Discovering Synergies... More

Quotes from Great Corporate Leaders

"No matter how deep a study you make, what you really have to rely on is your own intuition and when it comes down to it, you really don't know what's going to happen until you do it." ~ Konosuke Matsushita... More