| Entrepreneurship is defined as set of different | | | | happening is increasing the Risk. This indicator shows |
| activities that consist the business development. | | | | detectability failure. More chance of detection failure |
| These activities are starting with idea, project | | | | means higher grade of the Risk. |
| development, evaluation, investment, development, | | | | These three factors of Risk analysis are rated from |
| start-up, expansion, harvesting, re-evaluation and | | | | 1-10. The Total Risk assessment is expressed as a |
| cycle improvement. All these activities are important | | | | multiplication score of Risk factors: |
| for sustainable development of the business. | | | | Risk = Occurrence x Impact x Detection |
| But during this step-by-step business process, there | | | | This is the analytical tool for a Risk assessment. This |
| are many situations where the whole process can be | | | | tool should be used systematically in a Risk |
| jeopardized by incidents that may have more or less | | | | assessment process. But how should we expect the |
| influence. The whole process is planned in the best | | | | unexpected in a relevant manner? |
| manner. But regardless how perfect the execution | | | | The recommended flow of Risk assessment process |
| plan is, there is a certain possibility that some | | | | is: |
| occurrences will deviate plan from it's path until a | | | | 1.) Start Risk assessment process before Business |
| certain extent. The possibility of incident occurrences | | | | Planning. |
| that will deviate execution of the plan is defined as a | | | | 2.) Organize workshop with mid and top level |
| Risk. | | | | managers of different functions. |
| The Risk is the part of every business. There is | | | | 3.) Train participants about structure of the Risk |
| always a chance that something will happen that will | | | | universe. Brainstorm possible Risks of the business. |
| change the development of plan. Since the Risk is | | | | Write down all potential risks. |
| inevitable companion of the business, it is necessary | | | | 4.) Rate all risks according the Risk Analysis Tool. |
| to manage Risks, in order to prevent negative | | | | Every participant of the workshop should vote from |
| occurrences and to alleviate consequences, if they | | | | 1-10 for Occurrence, Impact and Detectability for |
| appear. | | | | every identified Risk. |
| The measurement and management of the Risk is | | | | 5.) After compiling of all data create Risk Analysis |
| not tangible as other business indicators, therefore it | | | | Report. Based on this report, prepare plan of |
| cannot be calculated precisely. In order to expect the | | | | preventive and corrective measures, according the |
| unexpected, it is necessary to use subjective | | | | importance ranking of every risk. |
| judgment in conjunction with structured analytical | | | | 6.) Start next Risk assessment workshop with |
| tools. During the Risk analysis three main area are in | | | | re-evaluation last Risk Analysis Report. |
| the scope of the Risk Analysis Tool: | | | | This approach is giving you the chance to anticipate |
| * Occurrence - This indicator expresses possibility of | | | | potential Risks and to be prepared for the situation |
| Risk to happen. Higher the possibility, the higher is the | | | | of incident occurrence. It is true that Risk analysis is |
| rating. | | | | still the game of expecting of unexpected, but with |
| * Impact - Shows how big impact the Incident will | | | | this model you will be better prepared and less |
| create in case that happens. | | | | vulnerable for the potential incidence occurrences. |
| * Detection - Failure to detect the incident before | | | | |