Expert discusses risk management

September 9, 2016 — Leave a comment

Dev Randhawa discusses an expert’s thoughts on risk management.

I’ve decided to maintain a theme of being aware of taking risk this week, as I’ve also reacted to an article about the dangers of ‘low hanging fruit’ and summarised accordingly.

In this piece, I’ve decided to react to an article published on Entrepreneur, authored by an expert in risk management, about the prevalence of risk in a company’s early stages. 

Image of a team. Dev Randhawa discusses risk management.

Risk management is a quietly important factor.

Early issues

The author begins the piece by noting down the struggles of a business (and the subsequent woes of the entrepreneurs who run it) such as:

“…raising capital, securing patents and trademarks, being first to market, putting together the right team, holding it together, creating buzz, strain on family time…”

Clearly, from this observation, there are a multitude of issues early on. Why then, the author asks, should entrepreneurs worry about risk management?

He answers by pointing out that entrepreneurs’ risk filtering out voices of caution or even reason in growth stages, except for ‘in the most regulated of industries’.

This is a good point, as a recent historical case study proves.

A warning from history

In the late 90s – early 2000s, the ‘dotcom’ boom was making small business (and domain) owners rich overnight thanks to massive speculative growth from hungry investors. Despite this, issues existed in the fundamental functions of companies such as Pets.com, Boo.com and Webvan but weren’t paid attention to until the bubble brutally burst in 2000-2001.

What does this, and the Entrepreneur article, say about risk? It says be aware of it!

I think the author is smart to point out that some companies (from what I’ve seen, online companies especially) should be aware of risk. Risk exists everywhere, from the energy industry, to retail, to banking.

In summary, wise thoughts and a good message to take on board about risk.

About Dev Randhawa

Dev Randhawa is the CEO of Fission Uranium Corp. and an expert in natural resource exploration. He is also an active blogger on leadership, team-building and the uranium industry.

Dev Randhawa

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