RISK BEARING AND MANAGEMENT IN ENTREPRENEURSHIP

1. “RISK BEARING AND MANAGEMENT IN
ENTREPRENEURSHIP”
PREPARED BY:
ARUSHI ARORA
J-12-AGRI-468 (3rd YEAR)
SKUAST -JAMMU

2. “YOU CAN NEVER CROSS THE
OCEAN UNTIL YOU HAVE THE
COURAGE TO LOSE THE SIGHT
OF THE SHORE”

3. RISK MEANS??
• Risk refers to the possibility or chance of
meeting danger, suffering, loss, injury or
exposure to adversity or danger
• According to Frank Knight, “Risk is a
measurable uncertainty”
• According to Irving Fisher, “Risk may be
defined as combination of hazards measured
by probability.”

4. WHY TO TAKE THE RISK?
• No entrepreneurial effort is possible without
the element of risk
• If an entrepreneur is not willing to take risk,
the enterprise continues to be in the same
situation.
• Dissatisfaction with existing situation leads an
individual to attempt changing it. To what
extent the individual would go depends on his
ability to take risk and cope with its outcome.

5. WHY RISKS ARE RISKY?
Because
outcomes are
not known
It is similar to
treading an
unknown
path

6. ENTREPRENEURIAL RISK TAKING
REFERS TO
MODERATE
CALCULATED RISK
TAKEN BY AN
ENTREPRENEUR

7. TYPES OF RISKS
1. Pure risk: produces only one outcome i.e.
loss
Property
risk
Personal
risk
Liability
risk

8. 2. Speculative risk: may produce two outcomes
either profit or loss.
3. Fundamental risk: are those which affect the
society as a whole such as floods,
earthquakes, draught, etc
4. Dynamic risk: are those which are the
outcome of any change in the society.

9. ENTREPRENEURIAL RISK TAKING
DEPENDS UPON:
1. The degree to which an individual is dissatisfied
with the existing situation.
2. The needs and desire to change that situation in
which there is dissatisfaction.
3. The readiness to accept potential loss in case
entrepreneur loses.
4. The orientation towards accepting challenges in
life.
5. The deposition towards a hope for success
rather than a nudging fear of faliure.

10. FEATURES OF ENTREPRENEURIAL RISK
BEHAVIOUR
• Entrepreneurs do not take blind risks like
gamblers
• Entrepreneurs weigh the pros and cons
associated with possible outcomes of risk task
• Entrepreneurs take calculated and moderate
risks that also offer some challenge and a
sense of achievement on accomplishment of
risk-laden task.

11. RISK MANAGEMENT
• Step 1: Identify the Risk. , recognize and describe risks
that might affect your project or its outcomes.
• Step 2: Analyze the risk. Once risks are identified
determine consequence of each risk.
• Step 3: Evaluate or Rank the Risk. which can be done
by determining the risk magnitude
• Step 4: Treat the Risk. During this step you assess your
highest ranked risks and set out a plan to treat or
modify these risks to achieve acceptable risk levels
• Step 5: Monitor and Review the risk. This is the step
where you take your Project Risk Register and use it to
monitor, track and review risks.

13. REFRENCES
BOOK SOURCE
• Kanwalpreet sachdeva,sonia sharma-FUNDAMENTALS OF
ENTREPRENEURSHIP AND SMALL BUSINESS
• Dr. B.S. Hansra, Dr. V.K. Bharti- HANDBOOK OF AGRICULTURAL EXTENSION
AND COMMUNICATION
 INTERNET SOURCE
• http://www.martinbauer.com/Articles/Risk-Management/Key-Steps-in-
Risk-Management
• https://www.theirm.org/about/risk-management/
• https://www.google.co.in/webhp?hl=en#safe=off&hl=en-
IN&q=risk+taking+management
• http://ultrapreneursayings.com/wp-content/uploads/2013/02/Become-a-
risk-taker-not-a-risk-maker
• https://www.theirm.org/qualifications/