Risk is there to be managed

l Any successful business relies on effective and transparent financial management. This means you must maximise income, set competitive prices and minimise costs, but pay creditors and collect debts in time.

l Any successful business relies on effective and transparent financial management. This means you must maximise income, set competitive prices and minimise costs, but pay creditors and collect debts in time.

l Identify financial risks, manage them and take advantage of opportunities that come your way.

l Keep clients happy because this creates a stable income from existing clients and will attract new customers. Word of mouth is the best marketing tool.

l Incorporate your risk-management plan in your business plan, which will help to identify risks and opportunities.

l Risk management is a useful planning tool because it helps you identify your weaknesses and leverage your strengths.

l Risk management in a small business is only effective if it becomes part of the day-to-day running of the business. Risk management is as important as other management processes and techniques to ensure the successful operation of your business.

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