Negative Thinking To Get Solutions
Negative thinking here in terms of getting the bad possibilities of anything that can happen when applying a decision. Like yin and yang, all actions and decisions have both good and bad sides, and so do your business decisions.
When your plan is ripe and does not think about the negative possibilities then it is certain that the brand that is built will fail. The essence of applying the elasticity method to risk is to understand that every decision must have the possibility of failure.
So, to reduce losses something must be done, and that’s where the elastic risk approach is used. Because running a business cannot be separated from the name of risk, risk will always be in every type of industry that you choose.
Evidence of a company can survive is because they are able to manage all the possible fatal risks that will have a negative impact on the company. So, it’s not really easy in running a business let alone a company, it’s not all a matter of profit, you also have to estimate the losses.
Handling Before It Happens
Many people know that prevention is the best course of action that can be taken for better conditions. The concept also underlies the need for this elastic risk approach, an example of applying the solution of this method is to provide fire extinguishers or fire extinguishers.
By providing fire extinguisher, the losses caused by fire can be reduced as little as possible, although there are still losses resulting from the fire. Smart actions like this are needed in every company. Then many companies do promotions repeatedly, it is intended that the product is not forgotten and continues to attract consumers.
There is Always All Possibilities
Furthermore, in an elastic risk approach, there will always be a variety of risks that may occur in a business. No matter how small the business, then it will not be separated from a risk. Even in the development stage business can still be exposed to risk.
An example is when market demand is too large while insufficient production can also be bad for the company. It could be that consumers feel disappointed and no longer want to buy products from your company.
Conversely, if it produces too much while in reality the market only accepts a small portion of the product, the loss and unsold goods will be at the risk of the company.
Changes in the dynamics in marketing products must be immediately predicted to avoid the risk of these various things. Without good elastic risk approach management, a company will continue to lose money and eventually go bankrupt.
Understanding elasticity in basic economics is indeed very useful to be used to improve business performance that is being undertaken. Sometimes the elastic risk approach is often forgotten when designing a decision for the company.
Because they are too busy in making the company’s expansion plans, they forget the possibility of elasticity risk. So that instead brings a variety of small risks which then become bigger and detrimental to the company.
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