Special Story
However, it is injus ce to say that there are no cons of risks:
Frequent failure of strategies may dishearten the top management
Compe tors may acquire the failed organiza on
Execu on team may leave the organiza on
Sense of fear may develop across the organiza on
Future contracts may be cancelled
There may be socio-economic pressure from stakeholders including government
It is general no on that a start-up always faces higher degree of risk.But, this in not completely true. A
bigger organiza on will always face higher degree of risks because of large size, huge finance obliga on,
bigger team, global opera on etc. Shi ing from one strategy to another to reduce risk is me taking and
by the me it takes alterna ve course of ac on, a ermath of risk becomes severe and unmanageable.
In contrast, smaller organiza ons including start-ups can shi to alterna ve strategic plans soon to
mi gate or reduce risk.
Let us discuss that what kind of general risks an organiza on may face:
Management risk- any of the key persons leaving the organiza on
Product risk- failure of product because of being out-dated or compe tors came up with much
advanced product or associated services
Team risk- execu on team leaving the running projects suddenly
Suppliers' risk- vendors/suppliers cancelling the contracts at very short no ce
Legal risk- companies falling into li ga ons with compe tors
Environmental risk- sudden development of rules and regula ons by state or central government
pu ng pressure hard to survive
Financial risk- inability to service to debt or not mee ng financial expecta ons of outside equity
providers
www.Venture-Care.com/Magazine
October 2017
5