Logistic management and its inherent risks- Identify the strategies to reduce it.
Logistic management and its inherent risks- Identify the strategies to reduce it.
The ability to manage your own financial risk is one of the most important aspects of running a business. Proper financial risk management can help minimize financial losses, optimize profits, ensure smooth day-to-day operations and avoid reputational damage.\A comprehensive risk management plan can help anticipate future problems such as late payments or defaults, along with the ups and downs that are common in a business cycle. It helps a business to: Identify risks that require early action or response; Assess risk levels relative to exposure; Determine what action must be taken if a problem occurs; Prevent problems from occurring; and Plan for contingencies. SME does not need to follow large corporations to set up a risk management department or devote most of its resources to this task. However, Risk management activities will increase proportionately with a company's size. For small businesses, risk can be managed simply by minimizing losses from internal theft, fraud, and business relationship disputes.
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