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Risk Assessment And Risk Management In The Workplace

March 22nd, 2016

There are various processes that have to be accounted for in the workplace. Once a company is incorporated and comes to life, every step of its life needs to be assessed before it is taken in order to minimize the potential risks and to increase its efficiency as well as productivity which go hand in hand most of the time. There should be a separate division that handles risks by assessing it and managing it in order to boost the productivity of the workplace and helping it to achieve its objectives. Click this link https://uniqfund.com/borrower for more information about sme funding in Singapore.

Facing political risks

Political risks could affect the whole economy of a country such as Greece. This could have an impact on the credit worthiness of companies and banks and could put a halt on the borrowing power of firms on things such as an instant cash loan and other borrowings. However, there is nothing that could be done in such an instance as this will have a global impact. There are other political risks such as the changing of a country’s ruler or government which could bring a change in the government policies which could affect corporations. These things have to be kept in mind while running a business so that strategies can be formulated beforehand to tackle such situations.

Cash flow and liquidity risks

At times, the banks could be in a situation where they are reluctant to provide an instant money loan to a company which is facing difficulties in its cash flow. This could be due to the economy as well. However, the financial position of a company should be managed better by the company with regard to paying off the creditors of the company as and when the debts fall due and to make better investments which will ensure the existence of a better daily cash flow and assets which could be liquified easily. There should always be a plan B, should plan A fail to deliver through.

Price variations of commodities

Based on the type of industry a firm is in and the type of business activity that they carry out, price fluctuations in the commodities that are necessary for the trade of the business could be a challenging risk. Hence, there should be various options that are explored beforehand and these options should always be constantly explored. The lower the prices of the commodities, the more profitable it is for the company. The best supplier should always be sought out and research should be carried out to see if there are other suppliers with better offers.

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