Mastering Uncertainty: Strategic Risk Management for Entrepreneurs Risk management is an essential aspect of entrepreneurship, as it involves identifying, analyzing, and mitigating uncertainties in every area of business. As Harvard Business School professor Robert Kaplan suggests, good risk management doesn't have to be expensive and can actually save money and reputation in the long run (Kaplan & Mikes, 2012). At the heart of risk management lies the concept of the risk matrix, a tool that allows entrepreneurs to categorize risks based on the likelihood of occurrence and potential impact (Hillson, 2002). This visual aid helps prioritize which risks require immediate attention and which can be monitored over time. Additionally, SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) provides a framework for strategic planning by identifying internal and external risks (Helms & Nixon, 2010). Financial risk can be managed through diversification, hedgin...
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