FINANCIAL RISKS (Risk management in business)

How many remembered what happened on December 3rd 2016?, Well that's the day MMM freezed over 20 accounts in Nigeria..
Today, there are over 500 different schemes that people invest in, have deals, go for grants etc..
But the safety of this platform is not guaranteed.. Not even up to 18%
Many of us have been victims of different schemes and scams ..
When some are asked why? They will say they are taking risks...

Source
There are certain things we need to know before taking risks or going into a financial plan, business or even starting one..
Trader ➡cooperate Business ➡Sole proprietor ➡Entrepreneur ➡Investor
The above illustration is what must be considered before taking risk in a financial plan..
From sole proprietor down to a trader, if you find yourself in this category, you are always bearing the risk solely...
Now, I know many of us here are business owners and we do one or two things our hands can do

I will be giving us 5 things we must know to avoid excessive distress in taking risks
We must know that, every business is a risk, no matter how ficsible it may seem to look like

1. Don't lose CAPITAL
many businesses crumble under few months of startup because many refused to protect the capital. First thing we must know before taking a risky business is how you can get back your capital even if things don't go your way
Many are found of investing their whole life savings especially Pensioners who have worked so hard for over 35 years
Don't take a risky business where you can't have your capital refunded. Such business is not the risk..

2. The Early Birds Advice
Many people have become victims of different schemes and scams because they are advised by the early birds- they are the first to go into it, and they have come with good news about the scheme. They would convince you to join them. If they don't achieve this, they try to intimidate you.

3. Get Insurance
Today, people don't believe in insurance but you don't know it's helps a lot
Especially for those who transports goods. Its a better way of making sure your money is safe...

4. Don't be greedy
Many people are guilty of this reason. And those people who are so convertous are people who really get into scams and risks losing money
A greedy fellow is easy to convince. In fact they will help you to convince more people to join a scheme even if it's a scam.
Everyone has an element of greed in them, we are humans and we can't deny our nature.

5. Terms And conditions
This is a vital part of this lecture and I want everyone to be alert to this.
Every schemes, platform that doesn't have a term and conditions or certain degree of agreement between you is not worth the risk
For example, those who are into sale of lands could be very cunning. Most of these people don't have terms and conditions.. They can't be documented because many look ambiguous
Before joining a platform or going into a financial plan, Learn the terms and conditions involved..

As I conclude this part of Financial risks management. One thing is important..
Documentation.. This is an attribute everyone in business must have. All the listed ways are guildlines, they don't guarantee that you will have a risk-free business because no business is risk free. They are just proactive measures to take in avoiding risky decisions in business and investment and financial plans...

Every thing is worth the risk but don't lose ✅