There are many types of risk in a business. Although the conversation almost always focuses on customers, in reality it is a review of the entire organization where the risks are positive and negative. Positive risks are the lost opportunity costs for focusing on the wrong customers or promoting the wrong offer. Negative risks are those things that will hatm or kill the company.

We manage risks in business not to prevent risk, but to determine which to take or avoid through the prism of working capital and earnings. Today our focus is going to be on the marketing and sales areas leaving the other areas for operations.

Credit risk is where most small business operate. If correctly identified and managed, it can be leveraged as a strategic opportunity. Through effective credit risk management your business is able to greatly improve overall performance and secure a competitive advantage.

Topics: The Natrue of Types of Risks Managing Credit Risks Self-Financing Customers