Despite discussions on the topic, the benefits<\/strong> of this approach are still little known to many companies, especially SMEs.<\/p>\n It is often believed that risk management activities are complex, expensive or – worse – unnecessary. A mistaken belief that must be overcome.<\/p>\n After all, the years 2020-2022<\/strong> have shown how unpredictable events can be just around the corner, ready to disrupt our business operations.<\/p>\n While predicting the future is impossible, it is true that choices can be made that mitigate risks<\/strong> and their consequences<\/strong>.<\/p>\n Maturing a vision based on risk and its management is therefore a prerequisite for building a resilient business<\/strong>. We have discussed this concept here<\/strong><\/a>.<\/p>\n Today we will focus on the types<\/strong> of risk and the activities<\/strong> to manage it effectively if you work in a B2B company.<\/p>\n <\/p>\n According to ISO 31000<\/a>, risk management is “coordinated activities to direct and control and organization with regard to risk<\/b>“.<\/p>\n We immediately understand how the concept is extremely broad, incorporating For a company, it is a matter of defining procedures<\/strong> to assess the actual presence of risks, the probability of their occurrence and, at a later stage, the actions to be put into practice.<\/p>\n To this end, it is necessary to identify the persons<\/strong> responsible for the process, the resources<\/strong> to be allocated to and the control systems<\/strong> to be implemented.<\/p>\n What risks are really present inside and outside the company? Who should manage them? Are the actions taken effective? Are the monitoring tools suitable or should they be improved?<\/p>\n All questions that need to be answered with a plan<\/strong> to ensure the continuity of the company, the achievement of results, the protection of reputation and stakeholders’ interests.<\/p>\n In fact, risk is divided into different types<\/strong>, each capable of impacting on different areas of an organization: finance, operations, communication and others.<\/p>\n This is why risk management is an ongoing<\/strong> and comprehensive activity<\/strong>.<\/p>\n <\/p>\n A first distinction is the one between upside risk and downside risk<\/a><\/strong>.<\/p>\n Contrary to what one might think, risk can in fact have both a negative (downside risk) and a positive (uspide risk) connotation: for a company, exposing itself to a risk therefore means facing the consequences of an unforeseen situation<\/strong> that could bring both gains<\/strong> and losses<\/strong>.<\/p>\n For example, a positive risk<\/strong> might be the profit<\/strong> gained from the development of a new product<\/a><\/strong> against the risk of loss due to the costs incurred.<\/p>\n A negative risk<\/strong>, on the other hand, could be an external factor<\/strong> over which the company has no control, capable of compromising business performance. An example? The closure of a distributor<\/a><\/strong> due to a natural disaster.<\/p>\n Managing business risks<\/strong> therefore means finding a balance between positive and negative risks<\/strong>, handling the former and reducing- or eliminating if possible – the latter.<\/p>\n For a long time, the approach to risk was ‘insurance-based’<\/strong>, with a tendency to offload risk management onto insurance companies. Today, a managerial approach<\/strong> is preferred, whereby some of the risks are identified and managed by the company itself.<\/p>\n Let us now look at the main types of risk we have discussed so far.<\/p>\n <\/p>\n Generally, it is possible to distinguish between strategic<\/strong>, operational<\/strong>, financial<\/strong>, image<\/strong> and IT risks<\/strong>.<\/p>\n We must bear in mind that all risk dimensions are interconnected<\/strong>.<\/p>\n Think for a moment about a SME well positioned in the European market, but with a very small group of client companies due to ownership choices.<\/p>\n The bankruptcy of one of them leads to a drop in orders for the company, which impacts on its liquidity. The situation creates delays in payments to suppliers, with inevitable image damage.<\/p>\n This is how a risky strategy leads to impacts on most areas of the company’s business.<\/p>\n This is why risk management must represent a true governance model<\/strong>, based on a holistic view of the company<\/strong>, its processes and the external environment<\/strong>.<\/p>\n What are the fundamental steps to be followed to develop such a model? Let us see them using a concrete case as always.<\/p>\n <\/p>\n The approach to business risk<\/strong> is described by numerous theoretical frameworks, more or less complex. Starting from the assumption that there is not one that is valid for every company, there are activities that cannot be missing from a complete risk management strategy.<\/p>\n These include:<\/p>\n Let’s go back to the SME mentioned earlier.<\/p>\n The company, which specializes in components for industrial automation<\/strong>, is faced with an unforeseen situation that affects almost all areas of the company.<\/p>\n The owners thus realize that the strategy adopted up to that point was short-sighted: crisis<\/strong> bring with them failures, and the principle also applies to their customers.<\/p>\n Of course, foreseeing such an event is not easy, which is why a comprehensive risk assessment<\/strong> must balance the probability of its occurrence<\/strong> with the severity of its impact.<\/p>\n For a company like the one in our example, the loss of even one customer, however remote, represents a very serious risk, given the poor differentiation of the customer portfolio<\/strong>.<\/p>\n![\"B2B](\"https:\/\/www.matchplat.com\/wp-content\/uploads\/2022\/12\/business-crisis-management-conceptual-image-scaled.jpg\" "\\"Matchplat\\"")
A definition of risk management<\/h2>\n
\nboth theoretical<\/strong> and practical<\/strong> aspects.<\/p>\nUpside and downside risk: what do we mean<\/h2>\n
![\"Types](\"https:\/\/www.matchplat.com\/wp-content\/uploads\/2022\/12\/business-people-discussing-results-of-successful-teamwork-scaled.jpg\" "\\"Matchplat\\"")
Types of risk<\/h2>\n\n
The steps of the risk management process: an example from B2B<\/h2>\n
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![\"The](\"https:\/\/www.matchplat.com\/wp-content\/uploads\/2022\/12\/management-income-exchange-graph-funds-min-scaled.jpg\" "\\"Matchplat\\"")
The help of market analysis for B2B risk management<\/h2>\n![\"Conclusions](\"https:\/\/www.matchplat.com\/wp-content\/uploads\/2022\/12\/risk-wording-print-screen-on-wooden-cube-blocks-on-blue-background-for-risk-management-concept-by-3d-render-scaled.jpg\" "\\"Matchplat\\"")
Conclusions<\/h2>\n