Risk management in an ethical way

"Never take a look at the depth of a watercourse with each feet" - Warren Buffet on taking risks.

Risk management is an essential part of modern business environment. We should take analyze risks before starting a business as well as when our business is in a stable mode.

Proper care should be taken care of business ethics while preparing a risk management plan. Because loss of morality and ethics is one of the biggest risks while running a corporation in this cut throat era, where all are running to maximize profits.

Definition: In business, risk management is defined as the process of identifying, monitoring and managing potential risks in order to minimize the negative impact they may have on an organization. Examples of potential risks embody security breaches, data loss, cyber attacks, system failures and natural disasters.

If we have a smooth flowing business and going to take any major event then we should proceed by taking following steps.

Step 1: Identify the Risk.

Step 2: Analyze the risk.

Step 3: Evaluate or Rank the Risk.

Step 4: Treat the Risk.

Step 5: Monitor and Review the risk.

It's not always possible to follow these steps successfully while taking care of business ethics, so we need to keep following terms in mind.

*Risk Avoidance

Avoid those components and activities that might carry a risk.

*Risk Retention

Accept some or all the implications related to a specific risk.

*Risk Transfer

Transfer the risk to a third party. For e.g. transferring the event security responsibility to a security agency.

*Risk Reduction

Reduce the chance related to a specific component or activity by developing a good contingency action set up.

Businessman vs Entrepreneur : Glancing through glasses of Ethics

When we talk of businessmen and entrepreneurs, we’re talking about two people who sell services or products to make a profit. However, this is what we believe to be true. There is a fine line that differentiates both from each other. It is easy to blur that line and often look at them in the same light, but that would not be entirely true.In this blog, we shall take a look at the key differences between a businessman and an entrepreneur but through the glasses of ethics.

We know the aim of a venture is to create profits, however most entrepreneurs don’t care regarding cash. Entrepreneurs need to vary the planet with their vision and keenness. They want to search out new answers to pre-existing issues, whereas businessmen usually stick with pre-existing norms of doing business. Businessmen see the planet as a chance to create cash. On the opposite hand, AN entrepreneur’s major pursuit is to act as AN discoverer or creator to the planet and develop a path-breaking or game-changing business model. An entrepreneur views the world as his duty. Businessmen and entrepreneurs even have totally different concepts once it involves taking risks. The former usually take calculated risks so as to maximize profits. Entrepreneurs can take risks like skydivers. It is as a result of if they fail, they can start from the scratch. Just like the previous comparison, every entrepreneur can be a businessman, but the opposite of that is not always true. From the examples above, we can infer that the both categories differ on two major aspects: vision & risks. A bourgeois doesn’t have a ground breaking vision or plan. He/she needs to be in business so as to create cash whereas taking as very little risks as attainable, i.e., their major purpose is to make money. Entrepreneurs area unit visionaries UN agency would like to vary the planet. Money making is not necessarily their priority.

I won't conclude by saying that entrepreneurs are better than businessmen, actually entrepreneurs are a subset of businessmen but they are those who chose the road less traveled. So what do you think that you're heading towards? Just gonna survive in the market or going to emerge as a trend setter, leaving a trail behind yourself to let others follow you.

Self management, not learned in B-schools

INTRODUCTION

Everybody is the hero/heroine of his/her own story. But most of us waste most of our time managing a lot of unnecessary things in our lives. Don't just be a busy fool, be productive and chill. Don't just exist, live and live like nobody else ever could.

Never ever fall for the conspiracy theory of being rich, popular, powerful etc. always focus on being happy and being human. 

Jim Carrey once said “I think everybody should get rich and famous and do everything they ever dream of so they can see that it's not the answer.”     

Managing finance, HR and everything else is secondary, manage what's your priority YOU.