Management of the business operation can be where risks to future profits can be significant. It can also be where reductions in risk can be the easiest to implement.

Management is internal to the operations of the business and where changes can be quickly implemented to improve the certainty of future profits.

Management controls and coordinates the key components of the business uses to generate profits. Management decides the objectives and plans, the organisation and structure and the roles and responsibilities of people within the business. Management produces and implements the policies and procedures and the systems and processes. Management sets the culture of the business. Poor management can mean inefficiencies. Inefficiencies usually a result in poor and unpredictable outcomes in future profits; thus increases the risk of not achieving future profit levels and a reduced business value.

Graham Long
Disclaimer: The views expressed in this article are those of the Writer. The information is not meant to be exhaustive. Readers are responsible for making their own inquiries and assessments as to the truth and accuracy of all the information given and should seek advice from professionals. No liability (in contract, tort or otherwise) will be accepted for any loss or damage incurred as a result of reliance upon any material contained in this publication or any information or advice provided in this publication or incorporated in it.

Kevin Lovewell
M: 0401 308 385
P: 1300 551 757
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Member & Registered Business Valuer
Australian Institute of Business Brokers

Jessica Holbrook
P: 1300 551 757
E: Click here to contact Negotia Group
Business Analyst