Risks – Management
Management of the business operation can be where risks to future profits can be significant. It can also be where reductions in risk can be the easiest to implement. Management is internal to the operations of the business and where changes can be quickly implemented to improve the certainty of future profits.
Management controls and coordinates the key components of the business uses to generate profits. Management decides the objectives and plans, the organisation and structure and the roles and responsibilities of people within the business. Management produces and implements the policies and procedures and the systems and processes. Management sets the culture of the business. Poor management can mean inefficiencies. Inefficiencies usually a result in poor and unpredictable outcomes in future profits; thus increases the risk of not achieving future profit levels and a reduced business value.
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