Operational risks include overproduction, low quality construction/manufacturing, or opportunities for fraud due to the culture of the operation. This usually stems from the lack of internal controls or measurement tools in the production cycle. Many small business owners are overly optimistic in nature and therefore this optimism creates an environment of invincibility. The owner needs to allow input from staff and outside consultants to monitor his enthusiasm and reduce the risk associated with optimistic beliefs.
Vertical integration in business refers to the process of gaining control over more steps of the product production stream. Whenever a business obtains or can greatly influence any one of these steps along the process […]