Risk in a company is a consequence that can affect both old and new start-up companies. There are different types of risks and it is important to be aware of them in order to know how to avoid or deal with them. Having a company is a great responsibility and there must be a team that takes care of every aspect of it very carefully.
What is the risk in a company?
The risk in a company refers to those actions that cause economic losses in the company. That is to say, those activities that may generate negative impacts on the administration and economy within the company.
Whether a company is old or new, risks will always exist. For this reason, it is necessary to have an efficient and prepared work team to avoid them. In the event of a potential threat to the company, timely action must be taken to prevent damage.
What are the types of risk in a company?
There are eight types of risk that a company may face. Some may be caused by internal factors and others by external factors. Whatever the case may be, it is important to know each of them in order to be prepared to face them.
- Fortuitous
This type of risk is the one that generates damage to the company’s infrastructure, thus causing economic damages. It may be caused by fire, earthquake, flood or any natural disaster that may affect the premises where the company is located.
- Inherent
Inherent risk is one of the most common risks because the cause may be human error. Accounting errors, administrative misunderstandings and mismanagement can affect a company’s economy. If these errors go on for a long period of time, the company can reach an economic emergency or, in the worst case scenario, go bankrupt.
- Market
The type of risk in a market-type company is very common in countries with economic inflation. Changes in raw material prices very often cause economic losses. Both sales are affected by constant price changes and the company’s purchasing power.
- Operative
Operational risk is caused by human failures and external factors such as politics. Economics, politics and social issues can affect a company and generate financial losses.
- Strategic
A company is on the road to success because of the internal strategies that its people employ. Strategies are part of the method to reach the goals that the company wishes to achieve. If a company has no strategies or carries them out in the wrong way, it will suffer.
- Financial
Financial problems in a company can be the main cause of a company’s failure. Liquidity problems, diversion of cash or some other factor affecting the company’s capital will produce this type of risk.
- Audit
It is mandatory for a company to be audited at least annually. This is done in order to evaluate that the money has been well managed and that all legal responsibilities have been fulfilled. If the auditors make mistakes in their analysis this will cause a serious consequence for the company.
- Technology
Today technology is a fundamental part of business and there is a risk in a company of which it is a part. There are programs that store all company and customer information. These programs must be of maximum security and there must be no risk of hacking. If the company’s data is breached, the damage will be irreversible.
Manage your company’s risks and avoid consequences
We cannot entirely avoid that one of the types of risks may affect our company. However, we can detect it in time to prevent it from being highly affected. Managing a risk in a company is a mandatory and necessary task for the personnel in charge. For this reason, it is essential that the company has people trained in this area.
Identifying the type of risk and assessing the damage generated is essential. It is also key to assess the short, medium and long term damage that can be caused by this type of risk. At KENOS we provide you with the best services and the most modern programs to protect your company.
Smart technology is the best investment for your business, the best companies have already included it and have seen great results. Protect your company from the types of risks it may face with the technology solutions we offer.
Learn more about us and contact us for advice, we are ready to help you with any questions you may have. We know which program is best suited to your company’s needs.
