Using Risk Management to Beat the Downturn

As we all know, big firms have healthy risk management systems, so if they manage their risk management department well, they are less likely to having problems in depressions. However, some small firms cannot afford to set up risk management departments, so this article talks about how small firms can manage their risks. It is obvious that nobody likes risk, and people are worried about risks. However, risks could be opportunities if you think other side. Many small firms do not want to spend money on risk management because their business did not have those big problems without risk managing. As I talked the earlier post, most firms, which were facing insolvency, did not prepare in good season. Thus, I think the firms should spend enough money on risk management. If small firms want to analyze their risk without hiring consultants because it is costly they could find intern program from the risk management department of local university, or Society of Actuaries can find a professional for that firms, and those costs are much less than hiring a consultant. Those people could perform basic risk analysis. Therefore, small firms should check their firms often with those low cost, and if they know they are having problems, they should higher a professional consultant to solve their problems.

http://www.businessweek.com/smallbiz/content/jan2009/sb2009018_717265.htm