0
Absolutely. It is a huge risk for the following reason:
- In a small organization the percentage of total daily employee time spent with customers is large.
- As the organization grows the percentage of total time spent on internal issues and tasks grows too.
- Eventually, very large organizations are filled with people who have virtually no customer contact and focus entirely on internal issues, rules and politics.
- This is the practical limit on organization size: when no one cares about the customers the customers are eventually migrated to another organization. The same can pretty much be said about the most motivated employees.
What else can I help you with?
How will risk analysis help a business to achieve a goal?
Risk analysis is a great option for any business. By performing a risk analysis a business can see where things are going wrong and can put a plan in action for change. In the end this can help a business tremendously.
Examine the concept of business risk and uncertainties and explain various business risk?
business risk is the risk ,a business face ,again the achieving of its objectives ,it can be of many types , like currency risk, political risk , industry specific risk , also financial risk that can also be business risk
What are role of government to business organisations-?
The role of government to business organizations is to create incentive for risk capital.
What of the features of business risk?
what is the features of variouse business risk
What does business risk mean?
business risk is when you take a risk when you dont know whether its right or wrong.
What is meabt by operating leverage?
- It measures the EBIT's percentage change as a result of a change of one percent in the level of output. - It helps in measuring the business risk.
What are the factors affecting styles?
Leadership style may be dependent on various factors: Risk - decision making and change initiatives based on degree of risk involved Type of business - creative business or supply driven How important change is - change for change's sake Organizational culture - may be long embedded and difficult to change Nature of the task - needing cooperation, direction, structures, factors affecting style
Financial risk of running a business?
financail risk of operating and opening a business
What is a business risk?
investment in an entity with indicators that it is not able to return the investment A business risk is a circumstance or factor that may have a negative impact on the operation or profitability of a given company. Sometimes referred to as company risk, a business risk can be the result of internal conditions, as well as some external factors that may be evident in the wider business community. When it comes to outside factors that can create an element of business risk, one of the most predominant risks is that of a change in demand for the goods and services produced by the company. If the change is a positive one, and the demand for the offerings of the company increase, the amount of risk is decreased a great deal. However, if consumer demand for the offerings decreases, either due to loss of business to competitors or a change in general economic conditions, the amount of risk involved to investors will increase significantly. When a company's risk factor is considered to be increased due to outside factors that are beyond the control of the company to correct, chances of attracting new investors is severely limited.
What is meant by business risk and why its important for the auditor to properly assess the risk?
Business risk means the amount of money and reputation that a business stands to lost. It is important for an auditor to assess the risk in order for the business to avoid heavy losses.
Define commercial risk?
Commercial risk is business risk. A business measures risk to determine if investments or projects are worth investing in before they do so.
What types of risk are involved in extending credit to business?
The risk of lending on character is called moral risk. Business risk involves lending on capacity. The risk of lending on capital is called property risk. An ideal business borrower will combine a minimum of each.
