Empowering entrepreneurs with outsourced Financial Executives to manage business risksJana Engelbrecht
When was the last time you encountered risk? After you take into account the definition, it was probably more recent than you think. Risk refers to the potential for an event or circumstance to have a negative impact on the achievement of a company’s objectives, goals, or financial performance.
Business risks encompass a range of challenges, including financial instability related to factors like currency fluctuations and credit risks, operational issues such as supply chain disruptions, market dynamics like changing consumer preferences and strategic missteps, as well as legal compliance concerns. Risks extend to damage to a company’s reputation, cybersecurity vulnerabilities, environmental and social responsibilities, political and regulatory changes, and the impact of natural disasters, all of which necessitate vigilant management.
Of course, that shouldn’t stop you from going into business; if it did, the economy would grind to a halt.
An outsourced Financial Executive from The Finance Team (TFT) can help you assess risks in the following ways:
1. Draw the fine line between being too risk-averse and taking on excessive risks for your business. An outsourced Financial Executive will help you identify what poses a real threat to your business and what seems riskier than it really is.
2. Help you manage audit risks. They know what auditors are looking for and how they are assessing risk within a company. They understand the trend and ratio analyses that will be used as your company undergoes the audit process. They also understand how to keep your audit trail as neat and transparent as possible, meaning that your company is more likely to have clean, hassle-free audits each year.
3. Predict the unexpected. While entrepreneurs generally (and necessarily) have an optimistic outlook, your outsourced Financial Executive is trained to think “what if…?” and what to do about it.
Risk is a necessary part of running a business and so is understanding and managing it. Reach out to The Finance Team to find out how you can benefit from an outsourced Financial Executive who can offer you the support you need for the duration that suits your requirements.