Business Tips: managing risk

A business owner needs to ensure that they spend some time working on the business and not just in the business, and one of the key things that you need to consider is creating a ‘risk register’ which sets out all of the risks facing the business. 

Some examples of risks are:

Human Resources risk            

• Dependence on some key staff

• Attracting and retaining staff

Sales/marketing risk               

• Not reaching target customers

• Low customer retention

Strategic risk                           

• Lack of strategy for business

• Failure to execute a business plan (or not even having a business plan)

• Litigation risk

Financial risk                          

• Rising interest rates

• Impact of inflation

• Inability to meet tax obligations

Product/service delivery risk  

• Supply chain constraints

• Unprofitable products/services

• Not responding to changing market conditions

Operational risk                      

• Ageing and inefficient fixed assets

• Not keeping up with competitors

Admin/IT risk                          

• Poor password policies

• Inadequate virus/firewall security increasing risk of data loss

We can then go through this with you and make suggestions on how to mitigate these risks – Get in touch with us to get this discussion started.