The Concept of Risk Management Assignment

Subject: Risk Management
Pages: 2
Words: 321
Reading time:
2 min
Study level: Bachelor

The primary risks that are of substantial consequences for small businesses include serious investment into projects that are not successful, unfit hires, serious injury in the workplace, and losing trust with customers. The risk of each is very high and can result in very detrimental results for a small company (Hirai, 2014). A high investment into a project of a small firm that does not succeed will result in the loss of substantial capital and no expected growth for the company the project was likely to produce. Unfit employees are likely to impede a company’s operations; within a small firm setting, this is especially dangerous as due to the small pool of workers, the inability to reach goals will be more hazardous. Severe injuries in the workplace can result in legal repercussions, loss of trust between employer and employees, and impedes general company operations. The loss of customer support is incredibly detrimental as it can lead to decreased sales, and less customer engagement and is likely to hinder company growth. As such, the mitigation of these risks is essential in keeping the process of the company’s operations effective and consistent.

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To address the likelihood of a project failure, it is essential to construct a detailed, thorough, and long-term project plan. An effective project plan can analyze and predict the necessary costs and timeline of all actions that will be necessary to facilitate success (Maciel, 2019). The costs of such a mitigation tactic are likely to be high or medium, as the size of the project is likely to dictate how much planning it requires. An HR department that is highly aware of the company’s needs is likely to be competent in selecting adequate employees. This tactic will also require substantial investment. Safety measures and instruction, whether in written or presentation form, are essential to mitigating workplace injuries (RMI Solutions, 2016). Public relations can be maintained through social media and local events.

References

Hirai, A. (2014). What kills startups? Cayenne Consulting.

Maciel, R. (2019). Project failure risk: Mitigation and control strategies. Mentor Works.

RMI Solutions. (2016). Strategies for reducing worksite injuries. RMI Solution.