How To Manage Risk in Your Business

 

“The biggest risk is not taking any risk…In a world that changing really quickly, the only strategy that is guaranteed to fail is not taking risks.”

– Mark Zuckerberg

When it comes to dealing with risk management in your business, it’s easy to view the problem as something to immediately solve. We tend to take on the approach of minimizing as much risk as possible. But a basic fact for any business is this: risk is inevitable. Understanding what exactly is at risk and how to use that risk to your advantage, can be a pivotal element of success.

If you are beginning to evaluate the risk in your business, there are a few questions you can ask yourself: What areas seem to be less successful than others? Can some of my success be improved upon further? Am I looking at the market long term? Am I utilizing changes in technology and efficiency? Just as you may have a team or designated time to focus on innovation, a focus on risk management can be equally beneficial. After all, innovation and risk management can heavily influence one another.

However, just as innovation requires creativity and taking chances, risk management should also be about taking calculated risks, not just preventing risks. If you truly want to see growth in your company, there will be multiple times in which you must take calculated risks to see exceptional results. Sometimes, it’s about taking the right risk instead of no risk at all. Still, it is important in these moments of calculated risk taking to always have a secondary plan in place in case things don’t go as you anticipate.

Success in business comes not only through working harder, but also through working smarter. Approaching risk taking in this same way can be vital. Intelligent and well thought out decision making is obviously important in all areas of business, but it’s important to remember to carry over that intelligent decision making even when it comes to risky business moves.

Kelly D. Scott
Chairman/CEO
The world’s leading business advisory and executive coaching organization

What Can Be Learned from Major Tech Companies

“I believe that if you show people the problems and you show them the solutions they will be moved to act.”

– Bill Gates

As we move further into the digital age, technology companies are increasingly dominating the market. The likes of Apple, Amazon, Facebook, and Microsoft have cemented themselves at the top of the market, being valued at $500 billion each. Clearly, for most other businesses there is a huge separation between the practices and philosophies of these massive tech. However, the success of these tech companies should not be completely overlooked, and even if their methods do not translate directly, much can be learned about staying relevant in the modern market.

It’s widely known of the youthful and modern offices of companies like Facebook and Google. With ping pong tables, the break room and bean bag chairs in the lobby, these companies try to evoke a sense of comfort and fun into the everyday work experience. This doesn’t necessarily mean you need you convert your workplace into something as zany and playful as Google, but rather simply understand the importance of having a pleasant and welcoming office culture and environment. Making your business a place where you and your employees want to work can do wonders for morale and long-term productivity.

Something all these companies have in common is a major focus in innovation. They not only have dedicated teams and resources for innovation but also make innovation one of the core values for your company. So even if you don’t have the personnel necessary, integrating innovative efforts into your everyday work life can be a major factor in your success.

Finally, each one of these industry leaders all share a willingness to be creative and try something new. Whether it be in advertising, production, hiring, or anything else, if you see a potential improvement or a new means of productivity, do not be afraid to pursue it to its fullest potential. A forward-thinking and creative mentality is a key characteristic of all successful companies, and it may be the key to help you take the next step.

Kelly D. Scott
Chairman/CEO
The world’s leading business advisory and executive coaching organization

What A Perspective Shift Could Do for Your Company

“To change ourselves effectively, we first had to change our perceptions.”

– Stephen R Covey

For many businesses, especially longer running companies, it can be easy to stick to simply “what works,” and refuse to be forward thinking and open for change. But this sort of stagnation can be detrimental to you and your business, especially when unexpected downswings and setbacks threaten. When the day comes where your tried and true strategy seems obsolete or just plain not working, it is important to be able to shift perspective and realize the problems of past performance.

Realizing a new perspective on your business doesn’t always have to mean hiring new personnel or totally abandoning your core components. For many businesses a fresh set of viewpoints can come from within, it’s only a matter of unlocking that potential. Something as simply as a company retreat or an innovation focused meeting may hugely help break the stagnation of normal day-to-day work life and finding a new outlook within your market.

Your customers and clientele are your business, so in times of trouble, and even in times of success, it is imperative to be aware of their desires and misgivings. It can be easy during profitable times to disregard the negative responses to your business, but, even if you don’t feel it is necessary to take action, it is important to at least take into account a wide range of responses to your business. The seemingly “outlier” customers may eventually be the key in understanding the change necessary to keep up with the competitive world.

As a businessperson it is universally important to always be on your toes. Understand and utilize on your company values, but do not solely rely on the same business norms, especially if they seem outdated and in need of innovation. A simple perspective shift for you or your company may be the difference between success and failure.

Kelly D. Scott
Chairman/CEO
The world’s leading business advisory and executive coaching organization