Steven Schain, former president of Spectra3D Technologies in Asheville, gives his best advice for managing risk, which is to think of it as mitigating risk instead. There's always risk involved when you go in a new direction with your business, whether it be financial, personal, legal, etc. You just need to ask yourself, "How do I mitigate that risk as much as possible?"
Best practices on managing risk.
That's a good question.
I think as an entrepreneur,
you take a risk regardless of
of what direction you go in
with your company.
You risk from a financial
standpoint, from legal standpoint
from personal standpoint,
there's a lot of risk involved
and managing that risk is
really mitigating the risk
trying to do things.
The way I've worked is
looking at what the risk is
of a certain policy or
direction that we wanna go in
and saying how can I mitigate
that risk as much as possible.
Right?
How do I take the risk that
I know is going to be there?
There's always a financial
risk when you go out
and you go in a new direction
and you don't know if that is
going to pan out financially.
But that financial risk can
be mitigated by savings,
can be mitigated by getting bank loan.
It could be mitigated
by having alternate streams
of income that don't rely
on the direction you're
taking your business.
But mitigating risk is a constant battle
and you're constantly looking at
what is the risk and
how I best minimize it.
