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Risks are integral part of business. This makes the way for growth. No business grows without taking risks. But risk need to be calculated properly. No one should take risks with proper planning and calculation.
There are many factors which need to be checked before taking risks. I am notifying here three factors.
1 Resource Allocation:
Every risk requires allocation of resources. This is the key to deal with and risk. Right allocation of resources is required to make the risk an opportunity. As an entrepreneur, one need to ascertain that the number of resources, he or she can allocate. Based on this allocation, one can determine the quantum of risk which can be taken. Higher the resource allocation higher the risk which could be taken and vice versa
2 Budget Allocation:
Budget is a key factor for the risk assessment. Budget allocations need to be properly planned. The planning should be done in such a way that day to day activities of the company do not get affected. This step must be done with proper care. Improper way of doing this can be financially troublesome for the company and the founder.
3 Time Allocation:
Risk planning and handling need right allocation of time. Time Allocation need to be in such a way that regular operation of company do not get affected. This is a most vital resource of an enterprise. Time, as a resource, is often neglected. One must properly allocate this.
Risk – in business – need to be properly planned. Above mentioned three points must be kept in mind before taking any risk.
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