Risks: does your business have immunity? Risk algorithms (I)

Risks: does your business have immunity? Risk algorithms (I)

Rolandas Mištautas, Head of Law Firm KONSUS LEGAL

Today's period of social tensions and economic challenges is a specific challenge for businesses, business managers and owners. Not only to survive, but also to grow stronger, with a firm grip on our shoulders - that's what matters today! To this end, we present to you a special KONSUS project: a series of educational articles dedicated to both theoretical and practical advice that will come in handy in these challenging times. 

According to leadership authority Peter F. Drucker, when the earth moves, cracks appear, i.e. previously unseen opportunities to act and achieve goals.

Today's period of social tensions and economic challenges is such a test for businesses, business managers and owners. The key is not to stick one's head in the sand, like the ancient ostrich, but to acknowledge the existence of specific risks and try to prevent them in time.

Certain peculiarities of social and even business psychology often make it difficult for some people to cross the psychological barrier that if I admit that my goal, my business, is or may be exposed to some risky situations in the future, I will be "weaker" or "weaker".

Unfortunately the opposite is true: a wise person transcends his or her own psychological barriers, recognises the existence of both favourable and potentially risky situations, and takes the appropriate, weighed and considered measures.

1. The first step: to recognise risks as a probability.

2. The second step: to identify in advance the most optimal methods for anticipating them.

3. The third step: to use the best methods to adapt to the risks that exist.

4. The fourth step: to carefully analyse the so-called risk algorithms.

5. The fifth step: to eliminate potential risks in advance.

For the sake of clarity, an algorithm is a sequence of precise instructions for someone to perform a specific task. An algorithm must satisfy the following conditions: it must do the job; it must be clear and unambiguous; it must define the sequence of steps needed to do the job, i.e. it must specify the exact order in which the necessary steps must be carried out.

For example, if we are talking about business leaders, managers at all levels, business owners, the specific task in this case would be to identify potential risks in advance. Analyse whatever the risk may be - economic, financial, tax, compliance with laws and regulations, take immediate action - and thus avoid it in time. In scientific terms: successfully eliminate business risks from your horizon.

What are the most common business risks today, and what solutions or combinations of solutions help to eliminate them faster, more successfully and at optimal cost? This is what we will discuss in the next installment of the educational article series "Risks: does your business have immunity?" In the next part of the series.

Updated: 2023-03-31