Risk in running a departmental store

 Whenever, there is risk, there is a possibility of making profit. Like other business, there is some risk inherent in running a departmental business. Some risk can be avoided by carefully monitoring however some risk can't be avoided but can decrease it's severity. There are also different kind of risk in sense of damage, financial, health etc.

Some risk are given below which should be considered before running a departmental store. There risk in running a departmental store has the potential to completely devasted the business. 

1. Physical Theft: The store manager or the owner should aware that theft can be a problem to the business. This risk can be avoided by putting surveillance cameras, securities.

2. Fire: Hazardous items inside the departmental store should be avoided. In case of fire, it can bring extreme loss to the business. Hence safeties like water circuit breaker, fire extinguisher should be keep inside the store in an easily assessable place.

3. Payment default: This kind of risk can be due to the technical problem used in the departmental store. In case of physical default, you should properly maintained the creditworthiness of the individuals.

4. Damage products: Among the inventories, there may be some defected product from the manufacturing or during the transportation. This kind of risk can also reduce the profit of the business.

5. Competition: Among all risk, competition risk should be one of the most important risk that need to be considered while running a departmental store business. If there is tight competition proper strategies and proper analyze should be adopted.

6. Inflation: Inflation rate, which we means the increase in the price of the products. Failing to adapt to the inflation can bring loss in the business. This kind of risk cannot be avoided.

Above risk are just a drop of water from the sea. However, these risk should be considered mainly to start our business. Failing to analyze risk before running the business may result in not be able to survive in the market.