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Advantages And Disadvantages Of Business Risk Management

1490 Words6 Pages

Introduction

The purpose of this report is to identify what is Business Risk Management (BRM) about. This report had sort out the information and divide them into different parts, Definition of risk, Type of risk, BRM models, The criticisms and disadvantages of BRM, What is SMEs. At last summary and conclusion the statement; ‘Business Risk Management (BRM) is of no value to small enterprise.’

Definition of risk

Business risk management is all about risk management which focuses on risks to business operations, systems, and processes. To identifying, prioritizing, and deal with the risks will help the company minimize unforeseen incidents and penalties and keep the business running smoothly.

Type of risk

Every Business faces the most comment 5 Key Risks

 Development Risk
Can the original product or service idea actually be created?

 Manufacturing Risk
If the product can be developed, can it actually be produced in appropriate volume?

 Marketing Risk
If the product can be made, can it be sold effectively?

 Financial Risk
If the product can be sold effectively, will the resulting company be profitable and can the profits actually be realized in a form that allows investors to receive cash

 Growth Risk
If the company can achieve operating profitability at one level, can profitability be maintained as the company grows and evolves?

Those risks can also analysis into internal and external risk

Internal Risks

The leader of business must identify and

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