What is one of the risks of not planning in an enterprise?

In the context of enterprise planning, one significant risk of not engaging in proper planning is the potential for cash flow issues. Cash flow management is crucial for the smooth operation of any business. Without a plan, an enterprise may struggle to anticipate its financial needs, leading to periods where expenses exceed income. This can create a situation where the business is unable to meet its short-term obligations, such as paying suppliers, employees, or other operational costs.

Effective planning helps to foresee potential financial shortages and allows for the establishment of measures to mitigate these risks, such as creating budgets, forecasting revenues and expenses, and identifying sources of funding. Therefore, without a proper plan in place, a business increases its vulnerability to cash flow problems, which can ultimately threaten its viability and growth.