The startup world can be invigorating.
From the moment an idea takes off, the adrenaline that comes from delivering the MVP, acquiring customers, securing investors, and rapid growth can give you the feeling that the sky's the limit. And it IS the limit, so long as you make sure you are not ignoring all of the “what ifs” - the possible risks, that all startups, especially marketplaces, are sure to encounter. In fact, you can do your business one better by getting ahead of these potential risks, arming yourself with the tools and know-how to effectively, and swiftly, handle these situations the moment they become a reality (or by preventing them altogether).
In 2018, Mark Zuckerberg (CEO, Facebook) was under fire for exposing the data of 87-million users to Cambridge Analytica. According to Zuck, “We’re an idealistic & optimistic company. For the first decade, we really focused on all the good that connecting people brings. But it’s clear now that we (Facebook) didn’t do enough. We didn’t focus enough on preventing abuse and thinking through how people could use these tools to do harm as well.”
And that’s the point! You MUST understand how your marketplace can be used and misused, including all the risks attendant to your marketplace. After all, you run the marketplace, so it’s on you to think this through. To that point, he followed up with a statement that can serve as an adage as we begin to embark on this journey of risk management for your marketplace startup:
“We didn't take a broad enough view of what our responsibility was."
How broad is broad enough? How do you even begin to identify potential risks in a rapidly growing and changing business? Once identified, how do you mitigate those risks?
Stick with Marketplace Risk and we will provide you with resources to learn everything you will need to know about identifying, predicting, preventing and responding to risks that your marketplace startup is undoubtedly going to face.