An intelligent way to approach risk management

The pain and shock of the recession has made many family business owners wish they’d better assessed the risks they took in boom times. Too many business leaders accepted risk unnecessarily or without adequate compensation simply because they did not consciously address it.

A new way of thinking about risk will be particularly important as the economy recovers. Companies that had cut costs or deferred spending will be seeking to take on new debt or invest in hiring, facilities, equipment or business acquisitions—all decisions that entail risk. An approach we call “AS-IS” can help a business to manage risk more carefully and profitably.

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