Business Risk

It’s invaluable that the business owner understands what Business Risk really means, especially in this economy.

The critical element that keeps your sanity as a business owner for whom risk hides behind every corner, is your assessment of that risk. Whether a risk is mild, concerning, or severe should be the evaluation that automatically pops into your head when you come across a risk—and that’s basically everything you come across as a business owner. Just opening up for business is a risk. Every single day you are likely to encounter at least one (but probably more than one) of these risks:

Hiring employees
Not hiring employees
Leasing equipment
Not leasing Equipment
Buying Equipment
Not buying Equipment
Purchasing inventory
Not purchasing inventory
Incurring debt
Not incurring debt

And by no means is that a complete list.

Whether you do something or you do nothing, every decision you make as a business owner carries risk. That’s why it’s so challenging to be one. It takes a specific mentality. Together with a CFO, a business owner must assess even what seem like the tiny risks to their business. When it turns out a risk is actually quite severe or otherwise intolerable then with the help of their CFO the business owner must mitigate it.

The CFO clearly plays an important role, no matter the size of your business, because they can be so helpful in the assessment and mitigation of risks to your business.

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