A] What are the Risk-Exposed Assets for – Entrepreneurial Entreprises?

Risk can be defined as the combination of the probability of an event and its consequences

(ISO/IEC Guide 73).

1. People

– equal opportunity on paper only for compliance sake is a major risk. Low staff retention, staff loyalty, low levels of morale (just another JOB attitude) and employee lack awareness of risks that pass through their desk/station on a day-to-day basis and their implications could seriously jeopardise management efforts. Employee’s involvement in training programmes is low. Poor incident reporting is a risk that most clients take very seriously and does limit or even affect Home Based Businesses and Small-Medium Entreprise’s ability to get repeat business and/or retain clients after the contracts have ended this is also a major operational concern and threatens their own very existence.

2. Property

– use of managed premises, need to engage with the premises members regularly, get to know your neighbours breakfast meeting etc.to alleviate risks arising from proximity and understand their risk tolerant levels so as to mitigate any risk that they did not consider. Property damage and business interruption from earthquakes, windstorms, fire, landslides, and floods need to considered.

3. Information

– disjointed information systems cluster are systemic within the Home Based Businesses and Small-Medium Entreprises set-up, exacerbated by duplication, insecure filling and storage, thus eroding the ability for effective usage of business intelligence, information and communication. Back-up systems are inadequate and sporadic, leaving sensitive documents exposed to exploitation and or misuse. This posses a significant risk in terms of data protection and freedom of information directives and legislation. These systems should be viewed holistically as depicted in the referenced chart.

4. Environment

– Home Based Businesses and Small-Medium Entreprises needs to mitigate its exposure to external factors, on the financial risks slight changes in interest rates and credit instruments would affect our liquidity ratio and cash-flow projections as such there is need for lower gearing ratios and leveraging cash reserves. On the strategic risks there is need to integrate target industry changes, customer changes and demands with proactive quantitative analysis of competition to minimise market share losses, through adequate research and business development. Our hazard risks in contractual engagement and supply chain resilience could be countered by proactively engaging with clients to ensure their aspirations are taken into consideration and suppliers have appropriate contingency plans. Engaging in a corporate cultural change and stronger board composition plus realisation that compliance is not an option – but the LAW could strengthen our operational risks.

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