Instructions: After reading the weeks material, address the following:
– What risk management issues would you confront in a retail organization? Explain your answer.
Instructions: Your initial post should be at least 250 words. Please respond to at least 2 other students. Responses should be a minimum of 100 substantive words.
A retail enterprise just like any form of business is prone to many risk management issues which if not well taken care of can lead to their collapse. The risks emanate from either the management, employees, products being sold as well as the management structure. The first risk management issue that a retailer can encounter is lack of risk decision making structure as well as lack of a proper decision making process (Hopkin, 2018). In most cases, the management fails to make risky decisions for fear of having negative implications. For instance, a retailer may fail to employ more staff for fear of a decline in profits. However, such a risk management decision can be the source of improved productivity. It is therefore important that retail organizations learn to strike a balance. Moreover, retail organizations may not have proper structures that can support very critical risk based decisions.
A retailer may also not have meaningful risk assessment processes yet it is very important for any business venture. Such assessments make it easy for a retail organization to be ready for any eventuality. Other retailers may not have enough expertise to undertake a clear compliance risk assessment and ensure the business is well ensured.
A retail organization may also run the risk of lack of open and risk-ware culture. As a way of encouraging employees and retail managers as well as their customers to relate well, there has to be a culture of transparency and accountability….