To Avoid Risks in Startups, Adopt Risk Management Practices to Assess Risks

Fiscal Planning & Forecasting: In an Indian context, financial planning & forecasting is specifically crucial for startups as they frequently face challenges regarding accessing funding & dealing the flow of cash.

As per the report by Ernst & Young, 85 percent of Indian startups go through financial management challenges, & 40 percent are denoting that they scuffle with accessing funding in initial stages.

In the sphere of startups, handling risks isn’t a snag, it is a runway to success & taking off the business to unimaginable heights

Financial planning software’s & tools such as Zoho Books, QuickBooks, Freeagent, Xero, Expensify & Bill.com are offering real-time features specially designed for Indian scenario that helps the startups to automate the invoice process, tracking the expenses, budget planning & comparison, secured protection for financial data, cloud-based accounting & many others. Also keeping a track on these innovations for financial planning will assist the startups to make informed decisions on taxes including GST & estimate the forthcoming financial set-up to eliminate the liquidity crisis.

“By including risk management in your budget, you can allocate resources to identify potential risks that could negatively impact your business. This may involve conducting risk management assessments, reviewing internal controls, and analyzing external factors that could affect your business”, says Mohan Ramaswamy, CEO & Co-Founder, Rubix Data Sciences.

Startup Accelerators & Incubators: Regardless of having a pioneering idea, startups need to sail over unexplored waters, which is very challenging & exhilarating. According to collective research reports, we came to know that almost 10 percent of startups in India fail in the first year of take-off & 70 percent of startups fail within two to five years.

Failure of the startups is directly linked to key risks such as lack of funding, disability to cater market needs & scaling issues & so on. The only solution to navigate these risks is the peerless startup accelerators & incubators who offers the right support system to thrive in. They water the startups with sufficient resources, infrastructure, mentorship & guidance. On this, startups can join forces with Key Indian accelerators & incubators such as T-Hub, Indian Angel Network, 9Unicorns Accelerator Fund, 10,000 Startups, JITO Angel Network to avoid the key risks & develop successful ventures.

“By adopting a comprehensive and human-centric approach, organizations can ensure the complete well-being of those they seek to protect”, says Rohit Karnatak, Vice President, Pinkerton Corporate Risk Management India