case study week 8

 Risk management is an integral aspect of every successful business plan. It is the process of identifying, assessing and prioritizing risks and developing strategies to mitigate the impacts. Good risk management helps organizations to avoid or minimize losses, protect their reputation, and improve decision-making. In this context, the FEP-KLTSA Business Challenge, a case study, highlights the importance of risk management and its tools for entrepreneurs.


The FEP-KLTSA Business Challenge was a competition organized by the Faculty of Entrepreneurship and Business at Kenyatta University in partnership with Kenya Leather and Tanneries Association (KLTSA). The challenge aimed at promoting entrepreneurial skills and innovation among Kenyan youths in the leather industry. One of the key aspects of the challenge was risk management. The participants had to develop a business plan that addressed potential risks inherent in the leather industry.


The good concept and tools for risk management include identification, assessment, and mitigation. Identification involves identifying possible risks that may affect an organization. Assessment involves analyzing the impacts of the identified risks on the organization. Mitigation involves developing strategies to manage the risks and minimize the impacts. Some of the key tools that entrepreneurs can use in risk management include the risk matrix, SWOT analysis, and contingency planning.


As an entrepreneur, managing risks starts with identifying the risks that may affect the business. This involves looking at the market trends, competition, government policies, economic factors, technological advancements, and other factors that may have an impact on the business. Once the risks are identified, the entrepreneur needs to assess their potential impacts using tools such as the risk matrix.


After assessing the risks, the entrepreneur can develop strategies to mitigate the impacts. This involves coming up with backup plans, diversifying the business, investing in insurance, and building strong relationships with suppliers and customers. The entrepreneur also needs to develop a contingency plan to manage the risks in case they occur. This plan should outline the steps to be taken in case of business disruption, financial crisis, or any other unforeseen event.


In conclusion, risk management is essential for entrepreneurs to succeed in business. The FEP-KLTSA Business Challenge is an excellent example of how risk management is critical for the success of a business plan. By identifying, assessing, and mitigating risks, entrepreneurs can make informed decisions, protect their reputation, and improve their chances of success.


References


1. Rizk, R. (2019). Risk Management in Entrepreneurship. International Journal of Advanced Computer Science and Applications, 10(7), 168-174.


2. Pratama, Y. D. (2017). Risk management and small business performance in developing countries. Journal of Small Business Management, 55(2), 277-292.


3. Zeng, L., & Tam, V. W. (2019). Entrepreneurship and Risk Management: A Review and Future Research Agenda. Journal of Risk and Financial Management, 12(4), 190.

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