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An entrepreneur makes all critical business activities dependent on one employee. What is the main managerial risk?

Answer and explanation

Correct answer: Excessive dependence on one person

When critical knowledge and tasks are concentrated in one employee, illness, resignation or unavailability can interrupt the whole operation. It also creates workload pressure and limits organisational learning. Therefore the main risk is excessive dependence on one person. Dividing responsibilities, documenting processes and preparing other employees can improve continuity. The arrangement does not guarantee quality, speed or higher demand.

Related tags

Key-Person-RiskDelegationBusiness-ContinuityQualities And Functions Of An EntrepreneurEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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