Managing Business Risks

Superior Essays
There are many different things to consider when running managing a business. There are risks that come with the business despite the type of business. These risks vary in types based on a number of different factors. Not managing these risks could run the possibility of business failure. There are almost an endless amount of possible risks. With this abundance of risks, it is sometimes difficult to manage them.
All of the risks that a business could possibly run into fall under two categories that are social risks and financial risks. Managing these two types of risks are very crucial in the survival of a business. If a business does not manage these risks, they will only pile up on each other never going away. No business wants
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Social risks are all of the risks that come with the person that a business hires. Social risks are not dependent on the position the person is. A CEO of a company can still pose a social risk. There are many different types of social risks. Every social risk, if not managed properly, can cause great harm to a business. There are many social risks on a business that include : human rights, corruption, security, land, environment, public health, working conditions, and supply chain (Vegt 975). Each of these listed are very essential to the way a business is ran. If not managed properly, there will be very harmful consequences. The first type, human rights, is not such a big deal in our country of America, but the same cannot be said about other parts of the world. Due to our labor laws in the United States, human rights are hard to infringe on because of the laws protecting them. Human rights are mainly seen violated in other parts of the world. It is seen in sweatshops in parts of Asia where the same clothes we wear on a daily bases are made. Corruption is a huge social risk. Corruption is the cause of many failures in businesses. Corruption itself has its own different types. Corruption in a business is not good for anyone. Corruption leads to inefficiency, lost resources, weakened development, and increases crime (Griffin). Misuse of money, bribery, and embezzlement all are …show more content…
The large scale and impact of adverse events, has resulted in increased density of global networks of people, organizations, and countries. Physical risks such as a fire or explosion provide the most types of risks to a building where business is conducted. Without a building business cannot be conducted. Depending on where a business is located there can be a location risk. These are fires, floods, tornadoes, strong storms, and earthquakes (Vegt 972). These can be detrimental to a business. Alcoholism and drug use are human risks that will hurt a business in different ways depending on whom the person is to the business whether it be an employee, manager, or owner. These risks may cause an increase in project

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