You’ve invested your time and money into your business, so it’s wise to do everything you can to protect it.
Every business faces risks – unexpected events that can cause harm to you, your staff or customers, your property or profits.
The businesses that survive – and thrive – are usually the ones with a plan to identify and manage risks.
What are the risks to your business?
- Opportunity – the decisions you make
- Uncertainty – events you can’t predict like natural disasters, health pandemics, power, equipment or technology failures, changing market conditions, building fires, staff absences and leavers, or loss of suppliers
- Hazards – dangerous materials or unsafe actions
- Scams – losing money by paying for false goods or services
- Fraud – being misled or having your identity stolen
- Cyber security – hackers gaining access to your IT systems
- Crime - vandalism and theft
Risk management is an essential part of planning and running your business.
Assessing your risks and how you will manage them helps your business be better prepared for, and more resilient to, all kinds of negative events.
This also increases your chances of being able to continue operating during an emergency (or disruption) and getting back to ‘business-as-usual’ as quickly as possible afterwards.
A risk management plan should:
- Identify the risks you can’t live with
- Work out how likely they are to occur and the expected impact
- Find ways to reduce or remove them.