Are opportunity-driven (di dorong oleh

peluang)
Know how to assess opportunities
Have, or quickly learned, team-building skills
Risk-Taking & Have strong technical skills
Resourcing Skills Appreciate mentorship
Are able to manage growth
Understand the importance of social
interaction and common sense
Play “not to lose”
Are frequently serial entrepreneurs
(usahawan bersiri)

Entrepreneurs say they:

Beterusan, Bersabar

 Often started with a big company, then quit

 Are lone rangers, independent
 Are persistence, persevering, disciplined
 Are confident, self-reliant (yakin,
bergantung kendiri) Risk Taking Skills
 Have a broad education, are generalists
 Have basic business skills
 Started young
 Are good listeners
 Engage in calculated risk-taking (megambil
risiko)
 Risk – The root of the
Some Quotes
word (morphology)
 "He who is not courageous enough to take Rizq (Arabic)
risks will accomplish nothing in life." -
Muhammad Ali

 "Our lives improve only when we take Risicum (Latin)

chances -- and the first and most difficult
risk we can take is to be honest with
ourselves." - Walter Anderson Risque (French)
 "It is easy to be brave when far away from
danger." - Aesop Risk (English)
APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 5 APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 7

Some Quotes Risk – Is it good or bad?

 "If you don't fail now and again, it's a sign
you're playing it safe." - Woody Allen
 “Risk is just like shadow. It follows you
wherever you go, so what. Forget about it
and focus on what you are doing.
Remember, no pain, no gain; no risk, no
return - Dell
 Good because:
– It provides opportunity
– It provides return from ‘investment’
– It helps us to be meticulous, alert and
always mindful when making decisions
(Teliti, berjaga-jaga, peka)

APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 6 APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 8

Risk – Is it good or bad?
 Bad because:
– It is unpredictable (tidak boleh diramal)
– Leads to stress and anxiety (tekanan &
kebimbangan)
– Chance of losing money (hilang duit)
APT 2013 © 2009 Dr. Rafi/Dr. Ghazali
Concept of risk
 Risk is a concept that denotes a
potential negative impact to an asset
or some characteristic of value that
may arise from some present process
or future event.
APT 2013 © 2009 Dr. Rafi/Dr. Ghazali
Concept of risk
 In everyday usage, risk is often used
synonymously with the probability of a
known loss. (Keberangkalian kerugian yg
dikenalpasti)
9 APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 11
Risk vs. Uncertainty:
Some Definitions
 Webster's Dictionary:
– risk: "possibility of loss or injury; peril“
(keberangkalian kerugian, kecederaan
atau bahaya)
– uncertainty: "indefinite, indeterminate"
and "not known beyond a doubt." (tidak
diketahui, tidak dapat ditentukan, tidak
diketahui diluar keraguan)
10 APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 12

Risk vs. Uncertainty:
Some Definitions
 Frank H. Knight (1921):
– risk is present when future events occur
with measurable probability
(keberangkalian yg boleh diukur)
– uncertainty is present when the
likelihood of future events is indefinite or
incalculable (tidak diketahui atau tidak
boleh buat pengiraan)
APT 2013 © 2009 Dr. Rafi/Dr. Ghazali
Risk vs. Uncertainty: Some
Definitions (Risk)
 Risk is the possibility of
suffering harm or loss;
danger.
 Risk could be a factor, thing,
element, or course involving
uncertain danger; a hazard.
APT 2013 © 2009 Dr. Rafi/Dr. Ghazali
Risk vs. Uncertainty:
Some Definitions (Risk)
 Risk involves the expectation of
loss. It is a function of the
probability and the consequences of
harm.
 Risk is the possibility that returns
from an investment will be greater
or less than forecast.
 A state of uncertainty where some
possible outcomes have an
undesired effect or significant loss.
13 15
© 2009 Dr. Rafi/Dr. Ghazali
Risk vs. Uncertainty: Some
Definitions (Uncertainty)
 Uncertainty is the condition of being
uncertain; doubt. (keadaan tidak pasti)
 The lack of certainty, a state of having
limited knowledge where it is impossible
to exactly describe existing state or
future outcome, more than one possible
outcome. (kekurangan kepastian,
keadaan kekurangan pengetahuan)
14 APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 16
 Risk vs. Uncertainty: Some
Definitions (Uncertainty)
 The state of mind of an individual who
is unable to make any estimate of
future events.
 State of knowledge in which one or
more alternatives result in a set of
possible specific outcomes, but where
the probabilities of the outcomes are
neither known nor meaningful.
APT 2013 © 2009 Dr. Rafi/Dr. Ghazali
Risk – Decision Making
Some points:
 Only risk-takers are truly free. All decisions of
consequence involve risk.
 There is no such thing as permanent security
(keselamatan yg kekal)
 You are supposed to be afraid when you take
risk.
 Risking normally involves a degree of separating
anxiety, the anxiety you feel when you are
removed from something that makes you feel
secure. (kebimbagan)
Risk – Decision Making
Some points:
Tackling risk in decision-making
 Decide whether the risk is necessary or
desirable (perlu atau wajar)
 Risk for the right reasons when you are
calm and thoughtful (tenang & bernas)
Don’t take a risk when you are emotional
(emosi).
 Have a goal. Have clear purposes in mind.
17
Risk – Decision Making
Some points:
Tackling risk in decision-making
 Determine the possible loss (kerugian yg
mungkin terjadi) as well as the gain
(keuntungan) – know exactly what the
consequences of failure (kesan drpd
kegagalan) will be.
 Make an accurate estimate (anggaran yg
tepat) about the probability of each case.
 When possible, take one risk at a time.
WISER DECISION MAKING
Here are eleven (11) basic steps to make
wiser decisions.
 Define, as specifically as you can, the
decision that needs to be made.
 Write down as many alternatives as you
can think of. Let your imagination run
free.
 See where more information about
possible alternatives can be found.
WISER DECISION MAKING
Here are eleven (11) basic steps to make
wiser decisions.
 Check out (semak) your alternatives.
Find out more about the specifics of
each option.
 Sort through (susun) all the alternatives.
Evaluate (buat penilaian) them to see
which one/s work best for you.
 Visualize (gambarkan) the outcome
(hasil) of each alternative.
WISER DECISION MAKING
Here are eleven (11) basic steps to make
wiser decisions.
 Do a reality check (semakan yg
sebenar) Cross out those that are least
likely to work.
 Which alternative “fits” best? (yg
sepatutnya terbaik) Review (kaji
semula) the remaining ones (baki yg
ada) and decide which of them are
most comfortable (selesa)
WISER DECISION MAKING
Here are eleven (11) basic steps to make
wiser decisions.
 Get started! Get moving once you have
made your decision.
 Be sure to review your decision at
specified points (masa yg spesifik)
along the road. Remember that you
can always change your mind.
 Characteristics of risk and Typology of entrepreneurial
uncertainty risk styles
 Risk  Uncertainty Level of personal financial risk
– Measurable uncertainty
– Unmeasurable
– Quantifiable

Level of profit motive

uncertainty Low High
– Deliberate (fikirkan
– Unquantifiable
secara hati-hati)
– Non deliberate Low Risk avoiding Risk accepting
– Insurable (most of it) Activity seeking Activity seeking
(yg boleh dilindungi) – Non insurable
– Objective – Subjective
– Priori or statistical – Non-symmetrical or
probability (objective non-homogenous Risk avoiding Risk accepting
High
probability) (pemikiran probability (subjective Profit seeking Profit seeking
yg logik)
probability)
Source: Monroy & Folger (1993)

APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 25 27

Entrepreneurial risks Risk management

 Financial risks  Risk management is the process of
 Business and Operational risks identifying risks in advance
 Product and Service liability (keberhutanagan (pendahuluan) , assessing their likely
produk atau perkhidmatan)
occurrence (penilaian terhadap
 Career risks
sesuatu kejadian yg mungkin terjadi),
 Family and Social risks
and taking steps to reduce or
 Psychic (berkaitan minda manusia ) and
Health risks eliminate them (mitigation)
 Political and Governmental risks
 Unpredictable and Uncontrollable risks

APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 26 28

Risk
management
 Risk management involves
identifying, analyzing, and taking
steps to reduce or eliminate the
exposures to loss faced by an
organization. The practice of risk
management utilizes many tools
and techniques, including
insurance, to manage a wide
variety of risks.
Risk
management
 Every business encounters
risks, some of which are
predictable and under
management's control, and
others which are
unpredictable and
uncontrollable.
Risk management in
small business
 Risk management is particularly
vital for small businesses, since
some common types of losses—
such as theft, fire, flood, legal
liability, injury, or disability— can
destroy in a few minutes what
may have taken an entrepreneur
years to build.
APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 31
Risk management in
small business
 Such losses and liabilities
can affect day-to-day
operations, reduce profits,
and cause financial hardship
severe enough to cripple or
bankrupt a small business.
APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 32
Entrepreneurs’ risk taking
behavior
 Risk taking is a skill need
to be learned Enterprise Resourcing
Do not fear to take

calculated or moderate
Skills
risks
 Do not take risks
unnecessarily

APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 33

Entrepreneurs’ risk taking Types of Resources

behavior  Manpower
 Material
 Perceive risk as opportunity  Financial(Money)
rather than as threat  Technological(Machine)
(ancaman)  Business Premise/Physical
 Perceive risk as challenge  Information
that triggers them to behave  Reputation
entrepreneurially  Networks (rangkaian)
 Organizational resources – structure,
systems and business models
APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 34 36
Strategic vs. Common Key Factors to Consider
Resources  Essentiality (critical or non-
critical) (penting)
 Strategic resources refer to
resources which provide a  Availability of supply
sustained competitive  Cost
advantage to a firm  Strategic/competitive
 Common resources are advantage (kelebihan
necessary for carrying out the berdaya saing)
firm’s usual activities but  Statutory/Legal requirements
provide no specific advantage  Quality vs. quantity

APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 37 APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 39

Attributes of Strategic Resource Management

Resources
 Valuable (berharga)
 Rare (jarang berlaku)
 Non-substitutable (tidak boleh diganti)
 Hard to copy (sukar utk ditiru)
APT 2013 © 2009 Dr. Rafi/Dr. Ghazali
 Objectives:
– To ensure any resources needed by the
business is available at the time,
quantity and specification (optimality)
eg. Just in Time (JIT)
– To avoid unnecessary waste or purchase
of resources
eg. Material Requirement Planning
– To ensure smooth operation of the
business
38 40
Creativity and Innovation
in Resource Management
 Creative and innovative
in acquiring resources
– Cheap, reusable, multi-
purpose, recyclable
 Creative and innovative
in managing resources
– Efficient, reduce waste,
generate revenue
APT 2013 © 2009 Dr. Rafi/Dr. Ghazali 41