How do I come up with a business plan? …
When we say risk planning and management, we think risk assessment, and therefore health and safety. That isn’t what I’m talking about here. Yes, it is important, and do make sure your H&S risk assessments are up to date. Therefore, if you need help with any other area of risk limitation, including first aid training, speak to our colleagues at The Risk Advisory Service (RAS for short).
So, if I’m not talking about that, ‘what is she talking?’ about I hear you say. Well…
Examples of potential risks to your business
Evolving marketplace, buyer behaviour and competitor success.
Change of exchange rate for imports or exports or debtors not paying their invoices on time which leads to cash flow problems.
Organisational/Human Factor/Management –
Inadequate training, succession planning.
Tax changes (sugar tax), Minimum wage legislation.
Legal & Regulatory –
GDPR legislation, requires improvement to website security.
Effective waste management, dynamic of customer will change over the immediate years, which will lead to a huge social pressure to focus on acting in a positive way for the environment & the common good.
Multiple bad reviews online, product recalls.
Server failure, machinery failure, inadequate information systems.
So, what is risk planning and management?
Firstly we need to identify the risks your business is facing. Once we have identified the risks you can classify them based on a calculated score. You do this by using the probability/frequency of it happening and the impact if it does. Secondly, you can use this information to create a risk register. Subsequently, you need to outline a course of action.
Such as board-level action or project manager monitoring, depending on the complexity and serious nature of the risk and outcome.
Once you have recognised the worst-case scenario you can decide on a course of action.
These range from retaining the risk and carrying on. To ceasing, or not commencing the activity, to stop the risk. There is also a large range of options between these two outcomes, including transferring the risk (insuring against it).
Sounds a bit deep?
This process sounds more daunting than it is. The main problem is that by doing in ineffectively you would be better off not doing it at all. Beacon Business Consultants can set you off on the right path, and act as a guide to help you learn to identify, score and manage your risks.
If time is what you are lacking, let’s be honest here, who isn’t? Then we can do it for you. We just need a short meeting to discuss the current position of your business. We can then work on your risk register and present you with the finished article. You can then use this as a guide, to keep your business as safe as possible and on track.
Risk management should be an ongoing consideration as we are in a VUCA (volatile, uncertain, complex and ambiguous) environment and therefore risks will change regularly. The threats change and therefore your actions and reactions need to change with them.
If you are aware of the risks, it makes handling them less intimidating.