Risk taking is an essential part of any kind of business. Before we apply risk taking in the case of a business, it is important to understand that life in itself is a risk, even though most individuals have not figured this out. Nonetheless, when people take risks in business, they face their risks and address them in different ways. Larsen (2006) believes that all business is risk, and that a company should be skilful enough to address its risk factors. Most people do not want to hear the word ˜risk,' because associate it with some sort of danger or failure, and therefore, a large number of people in society have failed to address the various risks they are faced with in the most appropriate manner. As Rees (1977) notes, risk to many is not viewed as a thing that can result to anything positive. Some view it as a danger and others as some form of tension and to the extreme; some would view it as a possible loss. Nonetheless, risks are part of business, and any businessperson must plan and be prepared on how to handle them in order to avoid losses.
According to Ferrell et al (2011), every business in the competitive world has to take charge of its own operations specifying clearly, what they really want to achieve. Whatever the specifications, they have to be informed of plans, and in fact lifelong plans and future aspirations and endeavours. The plans have the impact of helping the business in question visualize in the manner in which to attain the enjoyable heights in operations that have since only been dreams. Rees (1977) also identifies the importance of risk taking plan process, arguing that this process helps the owner of business to have a clear view of the goals of their business, as well as helping them achieve these goals. It is a fact that any opportunities that are normally realized in the life of any business, normally only opens the doors to the realities that businesses are faced with.
