Business
The Biggest Operational Risk Facing Growing Businesses Isn’t What Most CEOs Think
When business leaders talk about risk, the conversation usually turns to the threats that feel most dramatic. Economic uncertainty, rising costs, cyber attacks, regulation, supply chain disruption and changing customer behaviour all tend to dominate boardroom discussions.
These issues deserve attention, but they can also distract from a quieter and often more damaging risk: the possibility that a business has grown faster than its internal systems can support.
For many growing companies, the greatest operational threat is not a sudden external shock. It is the gradual widening of the gap between commercial ambition and organisational capability. A business can continue winning customers, increasing turnover and expanding its team while becoming less consistent, less coordinated and less resilient behind the scenes. By the time those weaknesses become visible, they are often already affecting performance, culture and customer experience.
This is a risk that Sanjeev Kumar Soosaipillai believes growing businesses need to take far more seriously. The companies that scale successfully are not always the ones that move fastest or hire most aggressively. More often, they are the ones that recognise when their operating model needs to evolve. They understand that a business designed for twenty people cannot simply be stretched to accommodate two hundred without consequence.
Growth Can Hide Weakness as Easily as It Reveals Success
The early stages of a business are often powered by speed, instinct and close personal oversight. Founders and senior leaders usually sit at the centre of decision-making, staying close to customers, managing key relationships, overseeing recruitment and maintaining a detailed understanding of the company’s financial position. This can be a powerful advantage because it allows the organisation to move quickly and respond to opportunities without unnecessary delay.
The challenge begins when that same style of operation is expected to support a much larger business. As headcount increases, customers multiply and responsibilities spread across departments or sites, direct oversight becomes harder to maintain. Decisions that were once made through informal conversations now require clear processes. Knowledge that previously sat with one or two senior people must be shared across teams. Standards that once felt obvious need to be written down, communicated and managed consistently.
This is where many companies misread the situation. Strong sales figures can create the impression that the organisation is healthy, even when internal strain is increasing. Revenue may be rising while teams are becoming overstretched, managers are applying inconsistent standards and employees are relying on outdated processes. Growth can therefore mask weakness for longer than leaders expect, particularly when commercial results remain strong enough to distract from operational warning signs.
The danger is that these problems rarely announce themselves clearly. They appear as small frustrations: duplicated work, unclear accountability, missed deadlines, inconsistent customer service, poor handovers, slow decision-making or managers interpreting priorities differently. Individually, each issue may seem manageable. Collectively, they point to a business that has outgrown the way it is run.
Why More People Do Not Automatically Mean More Capability
One of the most common responses to operational pressure is recruitment. When teams are stretched, the instinctive answer is often to hire more people. In some cases, that is exactly what is needed. Yet recruitment alone cannot fix a business that lacks structure. Adding people to unclear processes can increase complexity rather than reduce it, because every new employee needs direction, context, management and a clear understanding of how their role fits into the wider organisation.
This is an area where Sanjeev Kumar Soosaipillai takes a practical view. Businesses do not become stronger simply because they become bigger. They become stronger when growth is matched by capability. That means investing in leadership, systems, communication and accountability at the same time as investing in headcount. Without those foundations, even talented people can struggle to perform effectively because the environment around them does not allow them to succeed.
A growing company needs more than activity. It needs coordination. Employees need to know who owns which decisions, how information should flow, what standards are expected and how success is measured. Managers need to understand not only their operational responsibilities but also their role in developing people, communicating priorities and maintaining consistency. When these elements are missing, businesses often find themselves in the uncomfortable position of having more employees but no greater clarity.
This is why operational risk is so closely connected to leadership capability. As businesses grow, leadership becomes more distributed. The founder or chief executive can no longer be involved in every decision, which means managers at different levels must be equipped to lead with judgement and consistency. If those managers are promoted quickly without support, or if expectations are never clearly defined, the organisation begins to depend too heavily on individual personality rather than shared standards.
Communication Is Often the First System to Break
Communication is one of the clearest indicators of whether a business is scaling well. In a small organisation, information moves naturally. People sit close to each other, decisions are explained quickly and employees often have direct access to senior leaders. As the company expands, that informality becomes harder to sustain. Teams become more specialised, new layers of management appear and employees may no longer hear the same message at the same time.
Poor communication rarely feels like a major strategic risk at first. It feels like a series of minor misunderstandings. One department believes a project is urgent while another has not been told it is a priority. A manager interprets a policy differently from a colleague in another team. Employees hear about changes informally before they receive any official explanation. Customers receive inconsistent answers because internal guidance has not been properly shared.
Over time, these issues become expensive. They slow execution, damage trust and create unnecessary friction between teams. They also make leadership less effective, because even the right strategy will fail if it is not understood by the people expected to deliver it. A growing business therefore needs communication to become more intentional. That does not mean flooding employees with corporate messaging. It means ensuring that priorities, responsibilities and decisions are explained clearly enough for people to act with confidence.
This is particularly important during periods of change. Expansion, restructuring, new investment, leadership changes and shifts in commercial direction all place additional pressure on communication. Employees do not need to know every confidential detail, but they do need enough clarity to understand what is changing, why it matters and what is expected of them. Without that clarity, uncertainty fills the gap.
The Role of Governance in Preventing Operational Drift
Governance is sometimes treated as a formal concern reserved for larger or more regulated organisations. That is a mistake. Good governance is not about creating bureaucracy or slowing down entrepreneurial decision-making. At its best, it provides clarity around authority, responsibility and accountability. It helps a business understand who makes decisions, how performance is monitored and how risks are escalated before they become crises.
For growing companies, governance is especially important because operational drift can happen quietly. Decisions may be made differently across departments. Policies may exist but not be followed. Financial controls may struggle to keep pace with expansion. Performance data may be available but not properly interpreted. Without governance, leaders can find themselves relying on presumptions rather than evidence.
Sanjeev Kumar Soosaipillai has consistently approached growth as a question of organisational discipline as much as commercial ambition. Businesses need the confidence to move quickly, but speed without control can create fragility. Governance allows leaders to retain agility while ensuring that decisions are made within a framework that protects the long-term health of the organisation.
This balance matters. Too little structure creates inconsistency, while too much structure can make a business slow and defensive. The aim is not to turn an entrepreneurial company into a rigid corporate machine. The aim is to build just enough structure to ensure that growth does not depend on constant personal intervention from a small number of senior people.
Operational Strength Is Becoming a Competitive Advantage
The most resilient businesses are often those that treat operations as a source of competitive advantage rather than a back-office concern. They understand that customers notice consistency, employees notice clarity and investors notice whether growth is being managed responsibly. A company with strong internal systems can respond to opportunity more confidently because it has the infrastructure required to absorb additional demand.
This is especially important in uncertain markets. When external conditions are difficult, businesses with weak internal structures are exposed quickly. Rising costs, changing demand or new regulation can place pressure on decision-making and reveal gaps that were previously hidden. Companies with stronger operating models are better placed to adapt because they already have clearer information, stronger accountability and more reliable processes.
The lesson for growing businesses is straightforward but often ignored. Operational risk should not only be addressed when something breaks. It should be considered early, while the company is still performing well and has the capacity to strengthen its foundations. Waiting until systems are under visible strain usually makes change harder, more expensive and more disruptive.
For Sanjeev Kumar Soosaipillai, the difference between growth and sustainable scale lies in this discipline. Growth can be achieved through demand, ambition and commercial energy, but scale requires an organisation capable of delivering consistently as complexity increases. That means investing in people, leadership, governance, communication and systems before weaknesses become impossible to ignore.
The biggest operational risk facing growing businesses is therefore not always the one that appears on a risk register. It is the presumption that yesterday’s way of working will be strong enough for tomorrow’s business. Companies that challenge that assumption early give themselves a far better chance of turning growth into lasting success.
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Business
Dow Jones Slips 0.36% to 52,361 as Chip Stock Selloff Deepens and Netflix Shares Tumble on Weak Forecast
The Dow Jones Industrial Average fell 191.76 points, or 0.36%, to 52,361.21 in morning trading Friday, as a deepening selloff in semiconductor stocks and a disappointing forecast from Netflix weighed on Wall Street heading into the close of a turbulent trading week.
The declines were far steeper elsewhere on the market. The S&P 500 fell roughly 1.27% and the Nasdaq Composite tumbled about 2.36% in early trading, putting both indexes, along with the Dow, on track for weekly losses as the technology-heavy Nasdaq bore the brunt of renewed selling in chip-related names. The Philadelphia Semiconductor Index, a closely watched gauge of chip-sector performance, plunged more than 5% and entered bear-market territory Friday, extending a rough stretch that has now stretched across multiple sessions this month.
The chip selloff carried over from a difficult overnight session in Asia, where Japan’s Nikkei 225 dropped roughly 4% and other regional benchmarks pointed lower as investors continued reassessing whether massive spending on artificial intelligence infrastructure can be justified by current valuations across the technology sector. That skepticism has increasingly weighed on markets throughout July, even as several major technology companies continue posting strong underlying earnings results.
Adding to Friday’s cautious tone, Netflix shares fell more than 8% in extended trading Thursday after the streaming giant forecast a second consecutive quarter of slowing sales growth, disappointing investors who had grown accustomed to the company’s steady subscriber and revenue momentum in recent quarters. The disappointing guidance rippled into broader market sentiment overnight, compounding concerns already building around the technology sector’s ability to sustain its recent pace of growth.
Friday’s losses followed an already difficult session Thursday, when the Nasdaq fell 1.6% as chip stocks weakened again and investors parsed a mix of corporate earnings and macroeconomic signals. The pullback in chip stocks has become one of the defining storylines of the market’s performance so far this month, with sharp single-day swings in both directions as investors debate the durability of the artificial intelligence investment boom that has powered much of the broader market’s gains over the past year.
Individual stock performance within the Dow has varied significantly so far in 2026. Salesforce has emerged as the index’s worst-performing component this year, down more than 35% year-to-date, according to data from Investing.com, reflecting a sharp reversal for the enterprise software giant amid broader concerns about softening demand in the technology sector. The stock’s decline stands in stark contrast to some of the index’s stronger performers, underscoring the wide dispersion in performance among the Dow’s 30 components even as the broader index has posted more modest overall movement.
This week’s trading has unfolded against a backdrop of escalating geopolitical tension in the Middle East, which has added further volatility to markets already grappling with uncertainty over AI valuations. Crude oil prices climbed earlier in the week after the United States and Iran exchanged renewed military strikes, with the conflict centered on the Strait of Hormuz, a critical corridor for global oil shipments. Markets grew increasingly on edge after the U.S. renewed strikes near the strait over the weekend, and Iran retaliated with strikes against U.S. allies including Kuwait, Jordan and Qatar, sending crude prices higher and adding another layer of risk for investors already contending with a volatile technology sector.
Earlier in the week, inflation data offered a brief respite for markets. Tuesday’s June consumer price index reading showed prices falling 0.4% for the month, bringing the annual inflation rate down to 3.5%, a softer result than the 3.8% economists had expected. The unexpectedly mild inflation print briefly eased concerns about further Federal Reserve rate increases, with the probability of a rate hike at the central bank’s July meeting falling to roughly 17% from 42% the day before, according to the CME Group’s FedWatch tool. Traders, however, continued to price in a nearly 60% chance of a rate increase at the Fed’s September meeting, reflecting lingering uncertainty about the path of monetary policy given the volatile mix of geopolitical and economic crosscurrents shaping the outlook.
Skyler Weinand, chief investment officer at Regan Capital, cautioned earlier in the week that the reprieve in inflation data might prove temporary given the ongoing conflict in the Middle East. He noted that while the softer inflation print suggested the earlier price pressures tied to the Iran conflict were beginning to fade, renewed escalation in recent days could reverse that trend.
Corporate earnings have added further volatility to the week’s trading. International Business Machines shares fell sharply earlier in the week after the company warned that second-quarter profits would come in below expectations, citing softer-than-anticipated demand across its software and infrastructure businesses. That warning weighed heavily on the Dow given IBM’s inclusion in the price-weighted index, though semiconductor stocks staged a partial rebound in the sessions that followed, with the VanEck Semiconductor exchange-traded fund climbing more than 2% at one point as investors briefly returned to some of the sector’s more beaten-down names.
With bank earnings season now in full swing and Federal Reserve officials continuing to weigh incoming inflation and growth data, investors are likely to remain focused on how corporate results and geopolitical developments interact in shaping market direction heading into the following week. For now, Friday’s session reflects a market still working through competing pressures: renewed doubts about the sustainability of the artificial intelligence trade, elevated oil prices tied to unresolved tensions in the Middle East, and a mixed but generally resilient underlying economic picture that has so far kept the broader indexes from suffering more severe or sustained declines.
Form 4 Inspire Medical Systems Inc For: 17 July
The FDA and CDC are investigating Taco Bells lettuce supplier as consumers in four states are urged to avoid shredded lettuce.
An Ohio man is suing a Taco Bell franchisee over the cyclosporiasis outbreak after eating at one of the chain’s restaurants in the Cleveland area and becoming ill.
Mohammed Ayyad’s lawsuit claims that he ate two meals involving items he ordered regularly from a Taco Bell in North Olmsted, Ohio, on June 14, and another meal on June 21 that also involved multiple orders of cheesy fiesta potatoes and avocado ranch chicken stackers.
Ayyad began experiencing symptoms of a cyclospora infection on June 23 and worsened from a fever to include diarrhea and vomiting over the next day, the lawsuit alleges. He remained ill through July 2 and went to a healthcare provider, providing a stool sample confirmed on July 9 that he contracted cyclosporiasis that was then treated with antibiotics, but missed two weeks of work.
The suit claims that the Taco Bell franchisee, Pacific Bells LLC, sold defective food products to Ayyad, who is seeking damages for pain and suffering, medical and pharmaceutical expenses, lost wages and emotional distress.
FDA SAYS TACO BELL TO STOP USING LETTUCE SUPPLIER LINKED TO MULTISTATE PARASITE OUTBREAK
A Taco Bell franchisee is facing a lawsuit related to the cyclospora outbreak. (Marvin Joseph/The Washington Post via Getty Images)
FOX Business reached out to Taco Bell for comment on the lawsuit.
The Centers for Disease Control and Prevention (CDC) on Thursday posted an update into the cyclospora outbreak which noted it and other public health agencies are investigating infections linked to shredded iceberg lettuce served at Taco Bell locations in five states – including Indiana, Kentucky, Michigan, Ohio and West Virginia.
CDC’s update noted there have been 1,644 cyclospora infections recorded in relation to the outbreak with exposure to Taco Bell over the five states, with illness dates ranging from May 13 to July 13. There have been 94 hospitalizations and no deaths have been reported, per the agency.
TACO BELL INVESTIGATED AS LETTUCE EMERGES AS POSSIBLE SOURCE OF CYCLOSPORIASIS OUTBREAK
Taco Bell locations in five states were linked to the outbreak, including Indiana, Kentucky, Michigan, Ohio and West Virginia. (Mike Kemp/In Pictures via Getty Images / Getty Images)
The update added that the true number of sick people in the outbreak “is likely higher than the number reported, and the outbreak may not be limited to the states with known illnesses.” That’s because some people will recover without medical care and aren’t tested cyclospora, while other recent illnesses may not have been reported yet because it can take up to six weeks to determine if a sick person is part of the outbreak.
The Food and Drug Administration (FDA) identified a single supplier of shredded lettuce from Mexico used at the Taco Bell locations where sick people ate before becoming ill.
The FDA is looking to determine if the shredded iceberg lettuce went to other places, and is working with the supplier to determine if potentially contaminated lettuce remains on the market, while Taco Bell said it would stop using lettuce from the supplier.
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Taco Bell removed potentially affected lettuce from a supplier after the FDA linked it to a multistate cyclospora outbreak. (Jeffrey Greenberg/Universal Images Group via Getty Images)
Taco Bell said in a statement provided to FOX Business on Thursday that, “Based on ongoing conversations with public health officials, and out of an abundance of caution, Taco Bell has taken immediate action to voluntarily remove potentially impacted lettuce from a supplier in select states. The affected ingredient from our supplier is being indefinitely removed from our supply chain nationwide and will be replaced within 24 hours in select states.”
“While no official advisory has been issued, we believe public health is a shared responsibility among restaurants, their suppliers, and authorities, and we are proud to have consistently acted quickly and proactively to protect our guests. Taco Bell has taken precautionary action, and we encourage all relevant restaurants, retailers, and foodservice operators to do the same,” the company added.
Form 4 Natera Inc For: 17 July
takasuu/iStock via Getty Images
By Jennifer Nash
The National Association of Realtors (NAR) pending home sales index sank 5.4% in June to 72.5, the lowest level since January. This was more than the expected 0.5% decline and marks the first decrease for the index in
Form 4 KBR Inc For: 17 July
Brazil justice suspends visits to ex-President Bolsonaro for 30 days
James Dumoulin, co-founder of School of Hard Knocks, shares his journey to financial success, explaining how his media company, with millions of followers, monetizes access to top entrepreneurs.
Young entrepreneurs are increasingly turning social media audiences into full-scale businesses, using digital content to build subscription communities, marketing firms and investment portfolios instead of relying on a single source of income.
“School of Hard Knocks” co-founder James Dumoulin joined FOX Business’ Stuart Varney on “Varney & Co.” to explain how he has grown the company into a media platform with 26 million followers while expanding into multiple revenue streams.
24-year-old entrepreneur shares the wealth-building lessons he learned from billionaires. (Roy Rochlin / Getty Images)
Dumoulin said his strategy is built around creating a business that generates value in several different ways instead of relying solely on advertising revenue.
“So what we did is we looked at our core business of having one of the biggest business media channels in the entire world… What are all the different ways that we can make money off this thing?” Dumoulin said.
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He said one lesson has stood out after spending time with successful entrepreneurs.
“Concentration builds wealth, diversification keeps it,” Dumoulin said. “In our case, we became so good at one thing… And we diversified into other efforts.”
‘The Big Money Show’ panel discusses ‘Landmaxxing,’ a new real estate trend where billionaires purchase entire blocks of neighboring homes to create massive private compounds.
The 24-year-old said his focus remains on growing the media business while adding new ventures, including a marketing agency, a consulting company and investments.
Dumoulin also shared advice for younger people hoping to build wealth, stressing that long-term success requires consistent daily action.
TEEN INVESTOR BOOM: WHY WALL STREET IS CHASING YOUNGEST GENERATIONS EARLIER THAN EVER
FOX Business’ Gerri Willis presents a financial literacy quiz in NYC, highlighting Americans’ struggle with basic concepts like insurance.
“Macro patience and micro urgency is one of the most important concepts that you need to master in today’s world,” he said. “Billionaires take action on a daily basis.”
The 24-year-old said anyone willing to adopt that approach has the potential to achieve similar success.
“I have no doubt that you’ll be a millionaire one day at 24 years old like myself,” Dumoulin said.
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