Risk management is crucial for all types of businesses. Today’s unstable world of entrepreneurship is characterized by strict competition that does not allow big mistakes and does not forgive bad reputation. Managers must have good knowledge of different fields to ensure business’s security. This paper is dedicated to the case about a golf course, and it provides practical solutions to avoid its crisis.
The golf course is owned by a Company that could provide transfer for its liabilities (Kauffman and Moiseichik 155). It has many concerns about the beauty of the golf course, but it is not involved in its financial problems. As soon as the Company gets more information about wrong investments that took place to make the barriers, it will be more aware of the most important current problems. Moreover, sharing the golf course’s debt, it may provide more cooperative solutions which do not deal solely with the beauty of the facility.
Such risk management as treatment did not have a sufficient effect, because the problem became only worse. The treatment was represented by putting barriers (Spengler et al. 51). However, managers must choose strategies that minimize all existing risks as well as eliminate them in the future (Kauffman and Moiseichik 165). For this reason, the golf course must put sufficient control over emerged risks with the increase in traffic and problems with cars (Borghesi and Gaudenzi 7).
Avoidance is the best strategy to change the current crisis situation (Borghesi and Gaudenzi 7). It offers alternative decisions and will help to get rid of major problems in the future. Avoidance includes elimination of a facility or service (Spengler et al. 50). For this reason, the golf course in cooperation with the Company that takes new responsibility for financial expenses could move golf activities away from the dangerous area. Moreover, this cooperation should start offering new services on the territory along with golf. Such services can include a cafe for golf players.
Another risk management strategy must be concentrated on solving additional financial problems. It is crucial for financial liquidity of the enterprise (Borghesi and Gaudenzi 93). Since the Company is concerned about the golf course’s debt, the control over all debts will help to ensure the necessary liquidity. In any case, the owners of the golf course must not forget about the debt that was accumulated while building barriers. New loans associated with opening a new cafe will only make the situation more complicated. However, the golf course has no other choice than continuing the business development.
The reputation of the golf course begins to deteriorate due to people’s complaints. Golf is a special business that is accessible only to rich people, who are always concerned about the overall reputation of such facilities. They usually do not want to be associated with golf courses that have negative feedback. As a result, it needs to have a ‘clean’ reputation. This reputation and brand-building also concern both customers and stakeholders. The major stakeholder is the Company. Transfer and avoidance are meant to reduce financial problems of the golf course. Big debts and loans harm the reputation. Therefore, the beautiful new cafe, secured golf course situated far from the traffic, and new cooperation with the Company will create a good environment. The Company will ensure the necessary financial coverage and support, the new cafe will provide liquidity, and the relocated and renovated facility will restore the reputation. As a result, managers of the golf course can be sure that they have provided all-risks elimination.
In conclusion, the golf course must apply two major strategies: transfer and avoidance. Treatment is not enough to solve current difficult problems. In addition, managers must care about financial liquidity to cover all debts. Moreover, they must change the golf course location and create a new cafe service to restore the reputation.