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Risk and your business

Jul 20 2017 15:29
Carin Smith

Cape Town - These days, in order to stay in business, an enterprise has to be low cost and high quality, according to Dr Gert Cruywagen, director of risk at Tsogo Sun and founder and chair of the Cruywagen IRMSA Risk Foundation.

"The typical reaction to risk is often defensive, but risk can also be an opportunity," he explained at a seminar hosted by the institute this week.

"One should limit the perceived downside risk and look instead at what the real risks are. In this regard research is very important."

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He pointed out that the King IV report on corporate governance for SA states that the governing body of an enterprise should assume responsibility for the governance of risk and how it should be handled.

Cruywagen explained that there are three elements to risk. These are an uncertain situation, the likelihood of its occurrence and the effect it will have on an organisation. It will usually have positive and negative impacts on an organisation's objectives.

"Risk is not only a bad thing happening. It is also a good thing that does not happen - for instance missing an opportunity," said Cruywagen.

"Business has to think differently."

According to IRMSA CEO Gillian le Cordeur, there is always an upside to risk.

"Yes, there is much wrong in SA, but so much we can still do. Because unemployment is a major risk in the country, one of our goals is to enable the youth. This is done by means of internships, for instance," she said.

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entrepreneurship  |  risk  |  small business
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