Risk management is a significant process that can prevent losses or other negative effects in business. For entrepreneurs, it is important to be aware of this process and how it works. Sohail F Rahman is a successful businessman in Bangladesh who has steered away from various risks. It is one of the reasons why his conglomerate, BEXIMCO Group is well-accomplished in Bangladesh and abroad. It has attained one milestone after another due to the proper management of uncertainties. According to Mr. Rahman, even when these risks are internal/external or major/minor, they should be effectively managed. Doing so can add to the success of an organization during most phases.

Can a Business be Completely Risk-Free?

It can be difficult to make a business completely free from risks. However, it can be possible, depending on how it operates. This can also be determined by the factors that can negatively impact it and how well-prepared one is to manage all of these, adds Mr. Rahman.

Is Every Business Prone to Risks?

Indeed, any business can be vulnerable to some risks. This is irrespective of the industry it operates in, its size of operations, the level of growth it has attained, and other determinants. It has been explained by Sohail F Rahman that the nature or intensity of risks can vary, depending on whether they are internal or external.

Types of Internal and External Challenges

The Bangladeshi entrepreneur adds that internal challenges can arise from occurrences within a company. These can include operational, financial, talent acquisition-related, and poor leadership risks. On the flip side, market challenges can externally hinder a business. Other such difficulties can comprise environmental, regulatory, and technological risks.

How to Mitigate Risks in Business?

In order to steer away from potential risks in business, an entrepreneur can develop an approach. This approach should essentially focus on different types of risks and their management. Besides, it should concentrate on the assessment of these uncertainties. In doing so, their impact can be controlled. However, for this, it is vital to have a closer understanding of risk management.

An Overview of Risk Management in Business

One can comprehend risk management as a process that helps identify various uncertainties in business. Their nature is such that they can potentially affect a venture. This process aims to minimize this impact to the possible extent. At times, it can be successful in fully limiting the unwanted effects and adding to the growth of a business.

How can Businesses Develop Risk Management Plans?

Businesses can develop risk management plans by first identifying the uncertainties. For their identification, thorough assessments have to be carried out. In this process, the type of risk is taken into account. This assessment is dependent on the kind of industry, the trends that govern it, and other such factors.

Assess the Impact of Risk Factors

To create a plan for risk management, Sohail F Rahman suggests that the next important step is to assess the impact of factors. The Founder of BEXIMCO Group contributes the view that in this process, different challenges are studied. Then they are prioritized, considering the nature of the impact they can cause, whether major or minor.

Develop a Strategy for Mitigating Risks

In the next step, the risk management plan should cover the strategies to follow when uncertainties take place. They should guide entrepreneurs to carry out a set of measures when the impact of the challenge is felt or anticipated.

• Importantly, the measures should guide a businessman to accept a risk.
• Then it should aim to monitor the same from time to time.
• A possible move to limit the effect of the risk should be unfolded.
• Following this, a measure to recover the damage should be thought of.
• As per the changes in its effects, the measures should be modified as well.

Finally, it is Concluded that,

Risks can occur in any business. Every organization can be prone to these. Therefore, knowing risk mitigation is crucial. As per Sohail F Rahman, this process can safeguard ventures from witnessing the ill effects of such uncertainties. The Bangladeshi entrepreneur adds that a risk management strategy can be planned to effectively combat these challenges.