Risk Management and Business Essay

Submitted By Verohnika-Bau
Words: 1403
Pages: 6

Verohnika C. Bau
BUS650: Managerial Finance (NAJ1445A)
Instructor Keith Wade, DBA, MBA
December 1, 2014

The substantial risks of a functional business entails four major factors that become the lifeline such as property, market, employee, and customer mitigating risk factors. In developing subliminal guidelines propagates ideal situations that allow for a business to grow no matter what the trend. From changing customer attitudes to ultimate loss of employee training, the loss circles back to the mitigating risks for the business to go under. In order for the business to continually survive, these four factors must breathe in a continual airstream so that the negligence of business owner does not shadow its success. How relative are all these factors for the business to overcome with minimal risk management? Like every true life scenario, the happy ending is what every business envisions for years to come. The economic landscape holds the traditional peak and valley scenario in which identification of the mitigating risks may appear. The business owner must not conform to the illusion of being completely successful. The business owner must constantly review the risks that property, market, employee, and customer may introduce or to continue being a negative issue. As time passes, the risk of declining customers, may, in fact, be due to how far the distance to the business destination. However, the change in the location’s environment can make what the business offers fall into an economic downturn suddenly. As the media communicates the different products across a various range of formats such as television, prints, and radio, perceptions are really versatile in decisively travelling to the business for the first time or stop shopping there all together. Aside from the distance factor, there is also the need to upkeep employee training. As more automated systems bloom in today’s economy, the need for human driven projects and in completing them decline. Humans seek constant human contact despite the newer technological horizon that has installed itself into the human psychological mainframe. Confronting fears of revenue and profit loss is not a delightful notion. Neither is the idea that the business or owner may get involved in a lawsuit by another competitor or even worse, a customer. In complying with the law, a business will tend to thrive among the field of other competitors. Self-accountability is a permanent factor that encases several parts relative to decisive risk management. In allowing for internal auditing practices, “Mitigating the Risk of a Professional Liability Claim”, (Beckett Ference, Love, & Manisero, 2014), emphasizes “…that no service is immune from a professional liability claim”, (Beckett Ference, Love, & Manisero, 2014), now or in the future. This entails countless dollars being diverted from investing towards the business entity’s future towards “…billable services”, (Beckett Ference, Love, & Manisero, 2014), continued into legal fees, and containing truthful testimony and may envelop the property and its risk to become a less desirable location to do business with. As this article focuses on CPA businesses, practices, and policies, no one is quite exempt from the hardships that may ensue if the business owner does not tread lightly. Now comes the hard part of the business owner’s decision of containing possible damage inclusive of customer driven revenue loss. A significant risk mitigation for this specific scenario is to have auditing, market trackers, and risk assessment continually expand the search for continual market and business related revenues to qualm potential future losses. There is a term used when identifying if other oncoming vehicles cannot be identified in other lanes. Known as a blind spot, “…a place or area, as in an auditorium or part of a road, where vision is completely or partially