The Press — Being an Entrepreneur Means Having the Audacity to Take Risks
Taking risks is inherent to any business, regardless of its field of activity. No organization can innovate or generate growth without leaders who cultivate a certain taste for risk. However, assuming risk-taking cannot, in any case, be considered a threat to the company's sustainability. For risk management is not about refusing risk, but rather a policy that the organization implements to detect, prevent, and, if necessary, control risks. It must be said that risk management is a profession in its own right and, above all, a culture that, unfortunately, is lacking in many companies. Indeed, the significant investments required for prevention devices can discourage leaders who see them as additional costs weighing on the organization's finances. However, when considering the cost of inaction, i.e., the absence of detection devices, a paradigm shift can occur. In fact, a company without such devices is advancing blindly. The imperative is to promote a risk management culture, based on the deep conviction of the relevance of this issue. In short, the question of risk within the company can be summarized in three major challenges: risk identification, prevention, and control in the event of occurrence. Now, risk detection is a particularly laborious task. Experts recommend being vigilant and, above all, listening to everyone in order to detect signals, especially the weakest ones. For a crisis is always preceded by sometimes imperceptible signals. To achieve this goal, all means are good: interviews with employees, technical visits, audits, etc. Inventorying all risks that can generate crises that may threaten the company's sustainability is an essential first step to then prioritize and make informed decisions. Indeed, risks are not equal, neither in terms of impact nor in terms of probability of occurrence. In a collective book entitled "Crossed Views on Risk Management in Business," experts in the field have identified three broad categories of risks: strategic risk, resulting from an inconsistency between customer segmentation, company value, and commercial offer; financial risks, particularly those related to liquidity; and operational risks, inherent to the daily execution of activities, including IT, legal, social, and psychosocial issues. For these experts, other more macroeconomic issues such as geopolitical risks, knowledge management, etc. are also the responsibility of the company but are considered less pressing. The most important thing remains that leaders must consider risk detection as both an organizational and behavioral challenge. The human factor plays a determining role. This explains why investing in employee training on risk issues is particularly important: they are the most effective safeguards against increasingly imperceptible vulnerabilities.
Key Takeaways
- Risk-taking is essential for business innovation and growth
- Risk management is a policy that detects, prevents, and controls risks
- A company without risk management devices is advancing blindly
- Risk detection is a laborious task that requires vigilance and listening to everyone
- Risks are not equal and must be prioritized and addressed accordingly
- The human factor plays a crucial role in risk management, and employee training is essential
- Investing in risk management is crucial to prevent crises and ensure company sustainability
