Business Chops Tip #85: Does Your Strategic Planning Include Risk Management?
Mention "risk management" and thoughts turn to the insurance industry. Yet the concept is overarching and applies to planning in any business sector. Good strategic planning includes identifying potential obstacles to achieving the company's goals.
After risks are articulated and listed come contingency plans. Wise business managers build in mechanisms for monitoring the competitive business environment for early indicators that a risk may be approaching.
These are called "trip wires" and function as early warning of potential threats. And the wisest managers have constancy plans for dealing with a range of identified threats. How well does your company manage risks?
Author's Note: Creative and technical professionals (from musicians and actors to designers and engineers) rely on their "chops": those skills and techniques that they use to be successful on the job. Stiernberg Consulting coined the term Business Chops to encompass those skills, experience, and tactics that you rely on to be more successful. Whether you are a dealer, manufacturer, distributor, rep, or design firm, this series includes tips and techniques for optimizing sales, profits, and growth of your Custom Retail business.
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