Risk Management: What It Means for Entrepreneurs and How to Handle It Like a Pro

Life is full of risks, which is precisely the reason why we try to keep everything under control. From our finances and running a successful business to the little things such as double-checking if we have turned the stove off, risk is a powerful motivator to stay on the right track. So how does risk management affect organizations?

According to a recent study on project risk management trends, 92% of surveyed CEOs believe that information about risk is vital for long-term success, while only 23% agree that they have comprehensive information about risk regarding the business. Hence, identifying and preventing risks leads to an increase in revenue and allows you to stay on top in the industry.

Defining Risk Management & what entrepreneurs should know about it?

Defining Risk Management

As mentioned before, risk management is the process of identifying analyzing, and taking appropriate actions throughout the every step of working on the project. The goal is recognizing objectives and finding the best solution to maintain the company’s best interests during the duration of projects. When done correctly, proper risk management gives control over future events due to a proactive and well-designed risk management strategy.

Having said that, what is a more important characteristic of good entrepreneurs than their abilities to accurately understand and manage risks? Being a successful entrepreneur means recognizing potential when everyone else overlooks a lucrative opportunity and weighing opportunities to gain the most value.

Of course, not every risky venture turns out prosperous but learning to accept defeat and taking lessons from it is yet another great quality of smart and efficiency-driven entrepreneurs. Sure, the world sometimes views the entrepreneurs as sharks but it is mainly because some of the best in the business see more risks than others which motivate them to achieve more.

The confidence level rises when an entrepreneur is prepared to produce valuable information to clients, respect deadlines and have a backup plan ready just in case. This implies taking control over essentials such as:

  • Balancing the project budget and finding the most cost-effective solution.
  • Minimizing risks of human mistakes.
  • Staying on schedule.
  • Completing projects on time.
  • Identifying market needs.
  • Building good relationships with clients.
  • Leading a team and respecting their needs.
  • Implementing innovations and online software solutions.
  • Staying ahead of the competition.

What are the top Risk Management Strategies most beneficial for Entrepreneurs?

Risk Manager Strategies

To identify the best risk management strategy, one must ask the question – which is the biggest risk for businesses? Not having control over expenses, workforce, and projects are what quickly turns the tables for any company.

Therefore, the best way to track the project and a team is to incorporate online training software. Creating an eLearning course for employees is the most effective strategy entrepreneurs can adopt.

In order to prevent business risks, an online training course provides much-needed flexibility, low costs, and frees up time by preventing human error, increasing retention rates up to 60%. Benefits of considering such a simple technology solution include:

  • Improved training.
  • Lower costs.
  • Increased productivity.
  • Real-time access.
  • Better employee retention.
  • Personalized learning according to individual pace.
  • Organizational knowledge or correct knowledge management.
  • Ongoing access to resources.
  • Employee engagement via encouraged sharing.
  • Timely feedbacks.
  • Convenience and flexibility.

How entrepreneurs should approach Online Course creation process

The eLearning predictions in 2017 and beyond make online courses inevitable tools for business success. However, there is a right and wrong way to approach course creation. Any entrepreneur, especially those new to the game, should have the correct mindset when entering the world of online training development.

These are some of the things which they should keep in mind while creating an online course-

Get to Know Your Environment

The first thing when it comes to creating a successful course is that you need to know the skill set and knowledge of your workforce. In order for the program to be effective, it has to provide a real value to engage and motivate the audience. Evaluate the employees and identify the gaps in knowledge that need to be filled.

Don’t Run From A Bit of Humor

While researching the best material to enhance their learning, don’t avoid implementing catchy phrases and a small dose of humor to grab employee attention. Likewise, this will improve their retention and keep their interest throughout the course, starting from the beginning until completion.

Visual Aids & Navigation

Don’t bore your employees with pages of lengthy and unnecessary text. Support your courses with images, videos, text and audio material. Visual aids are proven to be powerful memory recall tools, so with their use, it will be easier for employees to retain information for a longer duration of time.

Online Courses Should Be Interactive    

Not only do visual aids improve retention, but the course should also be meaningful and stimulating. Implement different scenarios to trigger your employees’ emotions and give them a way to learn even when they think they are relaxing. Stimulate their mind by implementing fun learning games to make a more interactive course design.

Pilot Run the Course and Ask for Feedback 

Once you think you have made something powerful, run a pilot and see how people react to it. Discover if it ultimately meets the employee’s needs and what can be improved for a better experience. Ask for feedback or conduct a survey to check if the course design works as you have intended. And don’t be afraid of changes because if at you don’t succeed, the second time’s the charm.

Conclusion

To sum up, an entrepreneur can manage risks when he/she is ready to embrace technology and maximize its full potential. Did we miss out any key risk management strategy which an entrepreneur should be aware of? Do share your opinion with us in the comments section.

Kamy Anderson is an ed-tech enthusiast with a passion for writing on emerging technologies in the areas of corporate training and education. He is an expert in learning management system & elearning authoring tools - currently associated with ProProfs.