Risk Management - Tea Shop Report

I am going to establish a new tea shop business. There are five types of business risk that I might face. * Strategic Risks Are thoes risk associated with operating in my tea shop. They include risks arsing from: * Acquisition activity * Changes a mong customers or in demand * Research and development * Compliance Risk Compliance risk are those associated with the need to comply with laws and regulations. * Financial Risk Financial risk are associated with the financial structure of the business. The transactions the business makes, and the financial systems that already have in place. * Examining daily financial operation. * Watching the cashflow * Employee risk management, such as maintaining sufficient staff numbers and cover, employee safety and up-to-date skills * Health and safety risks * Operational risks Operational riska are associated with my tea shop’s operational and administrative procedures. These include: * Recruitment * Supply chain * Accounting controls * IT system * Internal rules, policies and procedure * Other risks * Environmental risks

Being in business involves risks. Some you’ll be aware of, but there may also be others that have escaped your attention. 5 step will take the business to safeguard from outlined risks. 1) Identify sources of risk

* These are the things you own or do that expose you to potential financial loss. * Damage to property owned by or rented to the business * Damage to other people 's property for which the business is legally responsible * Loss of income * Injury to an employee * Injury to another person for which the business is legally responsible

2) Estimate risk and potential losses

In this step that estimate both the frequency and severity of losses that might occur.

3) Decide how to handle risk

There are several options you can use to handle each