Risk management implies an integral part of a successful and stable business in present-day developments. According to Hillson and Simon, “risk management is too important to be left to chance” (1). Starting any business is always associated with multiple hardships and hazards, which are highly likely to prevent the operation of a company, and for this reason, this aspect should not be underestimated. Risk management can be defined as the process of determination, conduction of analysis, evaluation, and implementation of strategies for preventing particular threats to an enterprise. The final result is creating a plan to avoid detected hazards. Therefore, the primary aim of a risk manager is to propose the practical steps of minimizing all the possible risks, which threaten a business. This way, the purpose of this paper is to identify three main challenges for Global Green Books Publishing and discuss the required competencies and skills for risk managers in this company.
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Global Green Books Publishing is a successful business in printing and publishing books, though in the past, it encountered multiple problems preventing it from prosperity. Although nowadays, its function is effective and profitable, it is essential to calculate the possible threats in order to maintain and improve the results. One of them is the fact that there are employees without prior experience in Global Green Books Publishing, which may result in an unacceptable level of quality of the work. This event appears to be hazardous, as novices tend to make serious mistakes, as they need a great amount of time in order to adjust to the workplace. Therefore, the enterprise is highly likely to face the necessity to solve financial problems caused by these defects. This may decrease the profit of the company, which has an impact on other employees too.
Another risk associated with inexperienced workers and their possible mistakes at the workplace is the loss of respect of a customer. These days, the competition for a client among other businesses is extremely vibrant. In case a customer encounters some delays or defects, he or she is highly likely to prefer another company. In addition, such a person may share a negative experience with the surroundings, which prevents new clients from applying for Global Green Books Publishing. In the majority of cases, it is almost impossible to reassure customers, and it influences the success of a company considerably. For the reasons presented above, recruiting employees without prior experience should be reconsidered to some extent.
Problems with Schedule
Green Books Publishing has the potential to be in high demand, as printing, publishing, and presenting books in electronic format is required by education institutions to a large extent. However, the orders usually are not sent at one moment, and they arrive chaotically. It also should be mentioned that it is a common sight when teachers or headmasters need to be provided with the completed work urgently. In addition, these types of requirements are highly likely to interfere with the schedule, which was created for other orders. Therefore, the arrival of orders can be unpredictable, which influences the result and delivery time. Overload may lead to multiple delays and the loss of the trust of customers. Apart from it, there is a likelihood that in some periods, the demand may decline. Consequently, employees would not have an appropriate amount of work to do and would not receive a decent salary. An unpredictable schedule may result in high turnover too. Therefore, it is crucial to implement some improvements in schedule planning in order to minimize the risks of inability to complete the orders and the lack of appliances.
An Ambitious Idea for a Small Business
Although Green Books Publishing has been profitable during the recent three years, it appears to be an example of a small business. It is not a large company, which has a significant number of employees. However, the primary idea is ambitious and requires establishing a large company in the long term (Landsberg, 2). Furthermore, publishing and printing books is a monotonous job, which involves considerable time expenditures, while the demand for such a service will definitely increase. Therefore, in case Green Books Publishing continues the current course, it is highly likely to encounter strong competition, which will be challenging to win. Some tricky enterprisers may be inspired by this idea, realizing it and expend it. It is vital not to lose the chance to make effective improvements. For this reason, the necessity to start establishing a large company on the base of Green Books Publishing is apparent. Otherwise, the business is highly likely to be close permanently.
Required Competencies and Skills for Risk Managers
It is undeniable that Green Books Publishing‘s risk management should be extremely competent to address the aforementioned concerns. First of all, managers should get acquainted with the current tendencies in the market and update their knowledge on a regular basis. Otherwise, the professionals should be qualified and interested in their activity (Crouhy, Galai, and Mark, 3). That will allow making conclusions about risks, which match reality and make necessary predictions. A deep understanding of the current situation in the sphere of business and economics allows revealing some facts and treats, which are difficult to be noticed at first glance.
Another important trait of risk managers is creativity, which is essential for elaborating sufficient solutions for possible hazards. Occasionally, they are required to address the problems, which are new in the market, and they have to invent some strategies and practical steps in order to propose the most effective option (Crouhy, Galai, and Mark, 3). Moreover, although in some cases, it is possible to see the example of an appropriate solution supplied by another company, it should be implemented in accordance with the specifics of a particular field. Therefore, risk managers should be ready to create some prominent solutions.
The last competence, which is highly advisable for risk managers, as long-sightedness. These professionals are responsible for the successful development of a company for many years, so it is important to make decisions, which will be efficient in the long term. Whether a manager sticks to addressing only hot-button problems and does not regard future impacts, his or her strategy may become a failure after some time.
These days, risk management appears to be an essential tool for each business, which aims to achieve high results. It should be applied to Global Green Books Publishing in order to maintain successful performance and improve the results in the long term. Possible threats for the company are recruiting inexperienced employees, problems with scheduling due to the unpredictable arrival of orders, and an ambitious idea realized in the context of small businesses. Competent risk managers are highly likely to contribute to solving these concerns. This way, they are required to be get acquainted with the current tendencies in the market, be creative in elaborating proposals, and be long-sighted.
David Hillson and Peter Simon. 2017. Practical Project Risk Management: The ATOM Methodology.
Richard D. Landsberg. 2009. How to Make Pay for Performance Pay Off. Journal of Financial Service Professionals.
Michel Crouhy, Dan Galai, and Robert Mark. 2012. Risk Management in Regulatory Frameworks: Towards a Better Management of Risks. Web.