Monthly Archives: June 2018

Assessing Your Risks In 4 Simple Steps

The financial market is more alert than ever before because of the various regulatory bodies that are on the prowl to take note of companies and business owners that might be potential targets for risks. Every financial organization must have a thorough understanding of their risk profile and how the risks can be mitigated. Considering the fact that the finance industry is highly volatile and is prone to a good deal of risks, marching ahead without a proper risk assessment is a huge mistake.

Here are 4simple steps that you could follow in order to assess your risks while there is still time.

  1. Risk identification

The definition of risk varies from one person to another and also from one field to another. The common factor with all kinds of risks associated with a business is the fact that it encompasses everything that inhibits your efforts to reach your target. If there are factors in your business that negatively impact your work environment, the image of your company, the quality of your products and services, then all those factors will be considered as risks. So, the first step in risk assessment is risk identification.

  1. Risk library

Restricting yourself to identifying and analyzing the risks is not enough. One needs to have a risk library that will initiate and guide the entire process of risk assessment. A risk library is a conversation starter, wherein, the potential risks and discussed and awareness is created. Everyone involved in the company’s financial sector and otherwise is made aware of what to do and how to do.

  1. Mark risk owners

A company is divided into various sectors and risks are associated with each one of them. It is practically impossible for a business owner to view all risks in detail which is why he or she must mark a risk owner for a particular category and let him or her to the groundwork. He or she can also be given the responsibility of initiating risk controls so that Lion’s share of the work is done before you are required to intervene.

  1. Identifying the controls

Not all control measures work everywhere. In order to minimize your risks significantly, it is required to identify the control that is exclusive to the category in question. Reading investment guidelines properly is an efficient way to minimize risks associated with Equity. These are market risks and require a different set of guidelines that apply to environmental risks; hence, the categorization.

Introduction to Microfinance

 

We hear that a lot of new businesses have made an entry and lot of them have vanished just like that! There are many reasons behind it, one of the main reasons we found out was lack of financial support. Finances play a vital role in shaping the business of any kind. Without a proper support of finance, be the best of talent can’t be showcased and cant is brought to the world, and all of it goes in vain.

So, how do any small businesses thrive in the initial days? How do they fund their innovative idea? How is it possible for them to sustain the expenses and go forward with ideas to lead the business? Though family and friends are an option at the beginning, it can’t be always and can’t be full too; no matter how hard, one need a strong back power to help financially. So, what’s the solid option to become free, emerging businessmen or businesswomen?

Small business ideas are helped and financed by microfinance options in the suburban areas, like using the help of co-operative banks, smaller banks, and small fund houses. This small chain of financial service groups falls under the category of microfinance.

So, what exactly is microfinance?

For all those, small business entrepreneurs, this is one of the biggest fund house, that can help in getting your small capital for your start-up business, which the main big banks don’t consider and don’t bother to cater. This is mainly to support and encourage the smaller group of people with no capital, or very less capital but with talent and skill to come up with their business.

How to get help?

You can apply for this financing option by applying at several affiliated banks or organizations. Certain larger banks too, now, give microcredit to small-scale businessmen. Approaching an organization, that takes care of the microfinancing that also is non-profit organizations.

What does it cover?

Microfinance covers all your financial needs like a business in small scale, housing (smaller level), healthcare, insurance and few others.

Why is it helpful for small-scale businessmen?

There is no collateral required to be submitted as a deposit for your business finance or loan, considerably lesser interest rate, a short period of the loan, small amounts. Hence it’s very much suitable for emerging businesses.

How to proceed?

One needs to open a savings account in the respected small organization, and then proceed with loans or other needs and start their business journey.