Financial risks are key points of attention when making decisions. Find out what they are.
Financial risks are inherent to entrepreneurship. They arise because business activity involves operations at different times. What happens today determines expectations. And, in turn, these determine the possibilities and limits of action.
Learning to track and manage financial risks is therefore a must for any entrepreneur. Let's look at the most common ones, which affect companies of all kinds.
Start of marked textTWEET IT! Do you understand financial risks? Take note of the most important ones and how you can control them!End of marked text
Financial risks associated with planning
If planning were infallible, there would be no control. Therefore, you may make mistakes at various stages, such as:
Forecasting demand and production costs.
Analysis of the best technical and resource contracting alternatives to address the processes.
Understanding the business environment.
Understanding the organizational, legal, contractual, reputational, etc. implications of decision-making.
Anticipation of the responses of other agents.
Study of incentive problems.
Marking the objectives.
Budgeting .
To assess these risks, it is important to nursing homes email list monitor not r, analyze improvement initiatives and decide based on costs and benefits.
Treasury risks
Treasury is one of the areas where management has the finest margin. A cash surplus can hinder profitability, especially if it persists for a long time. A crisis , however temporary, can cause contractual problems and reputational damage. You can lose money and clients and even face bankruptcy.
Fortunately, there are tools from both a financing and investment perspective to address these problems, such as:
A working capital and, in general, a balanced balance sheet.
Banking alternatives for short-term credit and placement of treasury surpluses.
Legal and contractual opportunities to anticipate or delay collections and payments.
To manage them, it is essential to have good information in real time and a fluid connection with the banks. That is why having tools such as Sage XRT Advanced provides you with a treasury adapted to the needs of your business, both in the short and long term.
