Key risks that emanate from running a business

Balanced Scorecard
As president, I will focus on four main perspectives when creating a balanced scorecard for the organization. The first perspective is the financial perspective, whose primary goal is to ensure the company earns huge returns on investment and manages key risks that emanate from running a business. The organization’s goal is to satisfy the needs of all key stakeholders involved in the business, such as suppliers, customers, and shareholders. The second perspective is the customer perspective, which monitors how the organization values its customers and determines whether the customers are satisfied with the services offered by the company (CFI Team, 2022). If the customers are satisfied, it will be easy for the company to meet its objectives. The balanced scorecard considers the organization’s reputation versus its main competitor. This will enable the company to provide high-quality services to keep customers and avoid competition.
The third perspective I will consider is the internal business processes perspective because it will determine how well the organization runs. A balanced puts into perspective the objectives and measures that enable the organization to run more effectively. Additionally, the scorecard will enable customers to evaluate the organization’s services and determine whether they adhere to customers’ desired standards (Franklin et al., 2019). The crucial part of this perspective is determining what the organization is good at. The last perspective I will consider is the organizational capacity perspective. This is vital in optimizing objectives that have favorable results. For example, employees must demonstrate high performance in knowledge application, leadership, and skills.
I will use the above perspectives to determine significant performance measures. For example, from a financial perspective, I will evaluate the balance sheet to determine the organization’s financial health. In this case, if the company’s assets exceed its liabilities, it is progressing. Secondly, having more returning and new customers shows that the company offers high-quality services that satisfy and attract new customers (Franklin et al., 2019). From an internal business perspective, meeting the organization’s goals and objectives within the timeframe shows that the company is running effectively. In this case, the company has been offering high-quality services that have satisfied its customers. The last measure is based on organizational capacity. In this case, employees have been registering high performance, thus enabling the organization to meet its objectives and deliver high-quality customer service.
Various standards will be used to compare my professional chartered chapter to others in the networking association. The first standard is the leadership strategy. This standard aims to determine the type of leadership skills they are using and whether they benefit their companies. The second standard is the performance rate (CFI Team, 2022). The success of an organization is determined by its performance rate. If an organization has poor performance, the chances of it achieving its objectives and goals are relatively low. The main goal of this standard is to evaluate whether other organizations are performing better than mine.
Standard costs and balanced scorecards play an important role in evaluating an organization’s performance by measuring past performance data and providing the company with feedback on making a well-informed decision (Franklin et al., 2019). For example, if an organization registered low performance in the past, using this data, the company might decide to change strategies for offering services to customers. Changing such strategies will maximize the chances of the company meeting its objectives and registering high performance. Both financial and non-financial metrics should be integrated when evaluating an organization’s tasks and goals because they lead the organization to focus on long-term success instead of short-term financial performance. Long-term success will enable the company to have strong plans to meet its objectives.

Reference
CFI Team, (2022), Balanced Scorecard, https://corporatefinanceinstitute.com/resources/knowledge/finance/balanced-scorecard/
Franklin, M., Graybeal, P., & Cooper, D. (2019). Principles of Accounting Volume 2 Managerial Accounting. OpenStax, Rice University.