Question

Discuss at least two business risks that your organization face as COVID-19 crisis continues. What measures your organization adopt or what mitigating activities you can recommend to lessen its impact?

Answer 1

Business risk is the possibility of loss which may occur in the future all of a sudden, This cannot be anticipated. The risk involves many factors. Business risk and financial risk can be controlled by effective measures. But the Non-business risk is the thread which the company cannot control.

The Covid-19 comes under the non-business risk. Due to COVID-19, my organization has affected the most than any other industry. Since the Covid-is airborne diseases, the most affected industry is the sales industry where exactly am working as a General manager. The Main Two-risk has evolved in the recent months are-

1. Economic Risk - Since it is a start-up company, overcoming the current scenario is the biggest threat. The financial stability has come down as it is not an established company in this industry. This has increased the working capital flow but reduced sales/revenue. To get the sales up and running it will at least take 4-6 months and this is a huge loss on the business.

2. Strategy Risk - We have already put up with many strategies and this issue has faded all the strategy which we ere about to implement.

Corrective measures -

To minimize risk, the best option to have a perfect market knowledge of what is happening and what might happen in recent months.

1. Identify the risk in the project

2. Communicate it with all the users of the business

3. convert the thread to opportunities

4. strategy formulation to tackle the situation.

5. contingency plan formulation

6. Implement the stratergy.