Question

1. What are the different risks that business entities are exposed to currently? What advise can you give to the management in order to mitigate if not eliminate these risks?

2. If employees are unable to meet a standard set in an organization, what effects would you expect this to have on the total productivity of the organization? How can the management promote a culture of productivity in the whole organization?

Answer 1

1 )Various types of business risk

1. Economic risk
2. Financial risk
3. Operational risk
4. Technological risk
5. Physical risk (included danger that pose threats to a physical assets including building equipments etc.)
6. Strategic risk
7. Reputational risk.

A risk can be migrated through.

A business risk is unpredictable therefore it cannot completely avoided. However there are many strategies that business must have adopt to cut the impact of the risk.

• The management of the business should come and plan the risk before it occurs. And document everything because business risk cannot be static it tends to repeat itself during the business cycle.
• Purchasing insurance allow how to transfer the risk to insurance company in a small cost especially when it compared to the potential cost of uncover risk.
• Go with limited liabilities in this type of structure the owner of the business is not personally liable for the company's debt and other liability.

2) when the employee does not follow the standard sets the following effects can be seen on productivity of organisation:

• when employee does not follow a standard sets which was designed by the organisation this will affect the overall growth of the organisation may be reduced.
• It will also affect on the reputation of the organisation because when employee does not follow the standard sets then they will not work for the companies reputation.
• It may leads to wrong directions and wrong decisions will be made.
• There will be no protection of company's assets that include physical intellectual and electronic properties of the company.
• The objectives or mission cannot be achieved on time. Because of carelessness of the employee of the organisation.

A management can promote culture of productivity in organisation through:

1. Employee communication:there should be no gap between the employer and the employee of the organisation everything should be more transparent and clear
2. Culture awareness:understanding the organisations internal policies strength weaknesses. It will helps in promoting the productivity of organisation.
3. Solving the conflicts: productivity drives change and change drives conflict.minimising the conflicts helps in facilitate change which further drives productivity.