Running head: BUSINESS RISKS AND OPPORTUNITIES
Business Risks and Opportunities
Kevin Romero
University of Phoenix
Business Risks and Opportunities
There are many risks that are evolved when owning a business. There were many legal risk and opportunities present in the “Contract Creation and Management” simulation. There were disputes over the quality and timeliness of the deliverables. This paper will address specific measures that a business can go about to avoid risks, minimize liabilities, and benefit from opportunities. There are legal principles that are involved with business risks and opportunities. In the simulation there were alternative business approaches that a manager can take and which method is most effective.
Legal risks are present in every business. According to investor words legal risk is a description of the potential for loss arising from the uncertainty of legal proceedings, such as bankruptcy, and potential legal proceedings. In the simulations Span Systems had the potential of the loss of the contract with C-S. There were issues with the amount of work that had been done up to date, and what type of schedule the business is sticking to. Neither company can cancel the contract because fifty percent or more has been executed. There were also bugs that were found by C-S that worried C-S about Spam holding up there end of a 6 million dollar contract. Spam has the opportunity to execute another contract if the situation with C-S has a positive outcome. This contract is a larger contract with e-CRM and tangent on the other contract. Span Systems has legal risks that are mounted against the company but also has opportunities to make a positive outcome of the situation.
There are specific measures that a business can go about to avoid risks, minimize liabilities, and benefit from opportunities. Span Systems can avoid risks by making sure that there company is abiding by what the contract was agreed upon. When both parties are...