In: Operations Management
The Biggest risk in the order of priority and a degree of importance/severity are as below. Importance severity is out of
Rank | Risks | Importance Severity | Reasons |
1 | Personal Health | 10 | There might be a decline in health due to stress and strain of running a business. Person can get depressed. |
2 | Debt/Leverage | 9 | Debt leads tocontinuous stress and prevents one from focusing on doing his daily activity.It also closes the avenues for growing again. Business partners will be angry. |
3 | Bankruptcy | 8 | You can lose all the capital and must start from zero |
4 | Damaged relations | 7 | Business relations will be damaged and this hampers another chance at doing business |
5 | Uncertain future | 7 | Future is uncertain if business fails |
6 | Family life | 7 | Family life can be affected and damaged due to failures. |
7 | Reputation | 6 | One can lose his reputation in this process and this can damage his ability to do business again |
8 | Dip in confidence level | 6 | Failures can cause a person to lose confidence and hinder his ability to work |
9 | Jail | 6 | Risk of going to jail in case anyone sues. |
10 | Opportunity cost | 5 | Opportunity cost due to loss of time and returns from other choices |