Running A Spaza Shop Is Just As Risky...

Risk is everywhere. We face it in our daily lives, both in our personal spaces and even in business. Risk Management is important  in every business. You may be running a spaza shop or a Start-Up with listing potential however you still have to take care of the many risks your business faces.

When you go to sleep and set an alarm you are managing the risk of waking up late for an important meeting. In this scenario, an unwanted event is waking up late. To avoid that , you set an alarm. The alarm is your security measure, furthermore the same principle can even be applied in business.

Let's use one scenario in business. You are running a small retail shop at the corner and collecting over R5000.00  daily from customers. In this scenario, an unwanted event is theft of cash or loss of cash. To avoid this risk you deposit the money through the ATM everyday at close of business.

The process defined above is known as risk mitigation or risk management. This process is very critical. Now you can begin to imagine that there are many unwanted events that could face your business.

 On the other hand  risk management is a double-edged sword because not only does it reduce your exposure to risk but it also defines the processes within your business. A business with well-defined processes is like a well oiled machine which just keeps running without friction.

For more advice on risk  contact us:

Simphiwe@Mambodla.co.za

071 534 8873