The report focuses on the management of business for proper running. The introduction part describes risk management method and importance of this. Furthermore this part focuses on the impact of risks in the organisation. The study also focuses on some strategies for controlling of risks and some challenges which might face by the organisation in the running process.
Risk management analysis
Risk management analysis can be referred to as some measures that might be taken by some organisations to reduce or to eliminate risks. Risk management analysis is a set of processes that helps to define some specific methods which might ensure that the risks will not occur anymore. Organisation and human resources work together to reduce risks for the organisation. The report focuses on an organisation named KK Fashion Ltd which is a UK based clothing company.
Importance of risk management analysis
A successful risk management analysis might be helpful for a company to identify risks. This is also beneficial for the KK Fashion Ltd organisation. It is also helpful for the organisation to identify the impacts of it in the growth of the organisation and it is also beneficial to implement some methods for removal of risks.
Impact of risk on the organisation
Risk can affect the organisation negatively. Organisation’s goals and objectives cannot meet due to risks. It can also slow down the process which is related to the growth of the organisation.
Strategies for risk management
The organisation can use some risk management strategies which might be effective for the organisation in eliminating risks. As per the view of Panjeh Fouladgar and Lim (2020), risk management strategies are a set of steps that might be crucial for reducing risks of any company. The organisation might follow some strategies which are as follows.
The first step that the company can follow is that the organisation might identify risks. Risk detection can occur as a result of accidentally pitching across liabilities or as a result of installed methods and control mechanisms that might be important when possible hazards are recognised. When it comes to risk reduction, being dynamic rather than unconscious is always the better option for the organisation.
After identifying risks, the next important step is the assessing of risks to determine the types of risks and the impact of this to the organisation. As per the view of Shulman et al. (2018), the risk assessment method might be specific, systematic and depends on the organisation. The organisation might focus on the complexity of the risks to properly use the assessment method.
The next important step towards risk management is the response to the risks after the assessment method. Following the risk assessment, the next step in the method is to identify and implement solutions and manage that will allow the business to identify risks properly and in an effective manner and also in a timely way.
After that the KK Fashion Ltd can take risk monitoring strategies to eliminate risks. As per the view of Filko et al. (2021), monitoring of risks is a continual method of risk management that involves handling risk management accomplishment and identifying and managing the risks. Risk monitoring allows for immediate activity if a risk type, severity, or negative impact increases acceptable limits for the organisation.
Challenges for running a business
Running an organisation is very beneficial. The organisation might face some challenges which have to be overcome for proper running of the business. As per the view of Evans and Kenny (2019), challenges might be overcome or it will negatively impact the development process of the organisation. Some challenges are as follows.
The organisation might face a challenge of properly managing money in the running of the company. It is essential for any company to have a good quantity of cash to pay its payments, but it might be also crucial for every member related with the business. Whether it’s the company or the personal life, one will almost certainly become a capital void, providing pressure on the business stakeholders. As per the view of Craig et al. (2019), the business owners might either be hugely capitalised or earn supplementary revenue to supplement financial supply when it might be needed to prevent any kind of risk. For that reason, many businesses begin with the owners working full-time jobs while also creating a company. The one problem related to this is the shortage of money for proper working of the business. This is a type of financial challenge that the business might face in the running of the business.
Lack of demand can also be a challenge for the organisation. A critical component of the business is to understand the needs of the market. The company can face a challenge of existence if the organisation has not enough people to get its services. Misunderstanding the demands of the customers can create a big challenge to the organisation which might be overcome to keep focus on the needs of the customers.
Lots of businesses face a severe challenge due to the products or services that they offer to the customers that have a little enough competitive market to sustain the business. As per the view of Seong-Young (2019), understanding about the competitive market might be beneficial for any business to overcome challenges. The business owner might also look at the type of the market, the power and drawbacks of the competitors, the area of differentiation, and the long-term viability of need for the product or service of the organisation. Improper business plans can also create a challenge to the organisation as it will not be helpful in understanding of the market structure.
The report focuses on the management of business to get the proper growth. The study has an introduction part which focuses on the risk management analysis which is a method that can be adopted by organisations to reduce risk. The report focuses on an organisation named KK Fashion Ltd which is a UK based company. The introduction section also focuses on the importance of risk analysis methods and the impacts of risks in the organisation. If risks are not managed properly then it can slow down the development process of the organisation. Furthermore, the paper describes some strategies that can be taken by the organisation to manage risks. Move over the study focuses on some challenges which can be faced by the organisation and these might be handled for proper running of the organisation.
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