Cover the Downside Rule

Managing risk in certain respects can be as easy as Donald Trump makes it out to be. But even he forgot his golden rule – and openly admits it, when he went bankrupt in 1990. Trump asks himself when selecting new business ventures, and there would be many, ”could I handle the situation if things went unexpectedly bad”. He says even if [...]

Exit Risk Management

The whole point of investing in your business is to crystalise a profit at some point. The vast majority of investors are not investing in your business for a dividend income stream, like you might get from Telstra shares for example. Investors in growth stories are after a capital gain, and it is at the [...]

How do I assess my risk without a maths degree?

Image via Wikipedia How big are your risks? What is the outcome? What can I do about it? Simply treating all risks that you may be exposed to in your business “as equal” in your business plan doesn’t really help you manage them effectively, nor will it help an investor understand them. Further, whilst you [...]

De-risking – getting ready for investment

Make Your Business More Attractive to Venture Capital Investors By Derisking Derisking is the process of removing risk factors from your business in order to make it more attractive to an outside investor or to an outside buyer. It is one of the most important factors in the grooming process in order to be an [...]

Flying is all about Risk Management

Most of you will know that I am a keen aviator. Today, I am flying less than I used to, but my flying days are by no means behind me. In fact, my life long dreams involve flying to some degree.