There is also a saying that the uncertainty of future income caused by business decisions such as strategic choice, product price and sales means, especially the risk of earnings before interest and tax changes caused by the use of operating leverage by enterprises, is called business risk.
Business risk always affects the business activities and financial activities of enterprises, especially small and medium-sized enterprises, whose anti-risk ability is relatively weak, so it is necessary to nip in the bud and accurately calculate and measure the business risks of enterprises.
Especially in the current economic environment changes greatly and the economic situation is uncertain, it is more important for enterprises to improve their ability to resist risks in the market.
It is an indispensable part of small and medium-sized enterprises to understand the existing or potential business risks, strengthen risk management and establish a correct business philosophy.
Basic classification of business risks
From the accounting point of view, business risk is an uncertain financial loss.
From within the enterprise can be divided into:
I. Capital risk
Mainly refers to the enterprise managers refer to the enterprise income statement, confusing the data profit and cash flow on the books, easily causing the illusion of enterprise fund management, ignoring the actual fund situation, affecting the judgment of enterprises on their own profitability and solvency, and ultimately affecting the development and competitiveness of enterprises.
Second, leadership risk.
If enterprise leaders can't formulate a management strategy that keeps pace with the times and establish a new management system according to the development state of the enterprise, they will adopt a "one size fits all" and unchangeable management method regardless of the progress or retrogression of the enterprise, and problems will arise sooner or later.
Third, authorization risk.
When an enterprise develops to a certain extent, managers must face the problem of decentralization. How to decentralize? To what extent? "Flat management" or "vertical management", which one?
Can subordinates undertake this important task and how to coordinate the rights of various management departments?
Fourth, it is not difficult to operate, but it is difficult to continue to operate.
Especially when the initial manager can't continue to hold management responsibilities for various reasons, who will continue to run the enterprise and how to allocate control rights will affect the operation and sustainable operation of the enterprise.
As far as the causes and results of its formation are concerned, it can be divided into:
First, pure risk and speculative risk. The difference between these two risks lies in the different results caused by risks. There are only two kinds of results caused by pure risk, one is damaged and the other is undamaged. Such as transportation risk, property risk and employee safety risk in enterprise operation. There are three kinds of results caused by speculative risk: profit, capital preservation or loss. Such as securities investment risk, foreign exchange trading risk, marketing risk and so on.
Second, static risk and dynamic risk. The difference between these two risks lies in the different reasons for their formation. Static risk is caused by natural forces or people's wrong behavior, while dynamic risk is caused by changes in economic or social structure. The former is like earthquakes and shipwrecks, while the latter is like exchange rate changes, tax reform, energy crisis and so on.
How to deal with these business risks?
First, improve the enterprise management system, formulate risk management measures, have the ability to resist when risks come, and reduce the possibility of losses.
Second, establish enterprise risk control system, set up risk management department, strengthen internal risk awareness, do a good job in risk classification management and positioning, and avoid a series of risks that may occur among internal employees and external investment.
Third, avoid risks, that is, avoid people, things and things with greater risks. For example, in financing business, we don't accept objects with low credit reliability, and in marketing activities, we refuse marketing schemes that lack market research and have obvious defects in product design.
Both mature large and medium-sized enterprises and developing small and micro enterprises will inevitably encounter various operational risks, understand the importance of risks, understand their own risk problems, formulate reasonable countermeasures and avoid huge losses as much as possible.