In a post on the Cayenne Consulting website, Akira Hirai makes a powerful point about entrepreneurship and risk. Entrepreneurs take on so much risk that structured risk management becomes essential:
The key insight here is that a company that is reasonably good at managing individual risks might have a marginal chance of surviving overall. That’s why “reasonably good” isn’t good enough – risk management must be among the entrepreneur’s core competencies.
Hirai’s advice? Use risk management within your start-up team. We agree. Perform a risk inventory, create a risk register, and formalize your risk cycle. With so many unknowns, it pays to think ahead.