Identifying Risks to Your Business 101
Risk management is an essential practice for maintaining a profitable business. There is a wide spectrum of threats to the security and safety of your business and its employees, from cyber attacks to fire hazards. Identifying these threats is essential to the implementation of an effective preventative strategy. Here are a few key risks you should consider as part of this plan.
Competition
Perhaps the biggest and most persistent threat to the financial stability of a business is its direct competitors. Maintaining a significant market share means keeping ahead of competitors by making strategic decisions based upon thorough market research. Keep updating your offering to minimise risk from competitors and keep your product or service in line with evolving consumer demands.
Email security
Malware, phishing, spam and other email security threats, can potentially harm your business. Prevent compromising data leaks by encrypting emails that contain sensitive information like bank details. Implement email security protocols and regularly update your system’s anti-virus software. Employ a third party service like Mimecast Email Archiving for a cloud-based solution to keep you operational in the event of a power outage or system failure. Mimecast is the only unified email management service on the market, perfect for maintaining your business’s email security whilst lightening the load on your IT team’s resources.
Natural disasters
Natural risks to business such as fire and floods should be assessed and preventative measures taken to reduce the potential harm to your business. Power cuts are a common risk which can be easily prepared against. Backup generators could save you from losing valuable work and keep machinery up and running during a crisis. Use surge protectors to ensure the safety of your employees and of electrical equipment.
Reputation management
A strong brand image is essential to a business’s stability. Employ an online reputation management service in order to maintain a positive image on the internet. Don’t hide from negative reviews; respond diplomatically in order to maintain a strong relationship with the customer base. Monitor your business’s environmental impact and consider investing in green solutions.
Legislation
Ensure that your business is in compliance with the surrounding legal framework. This means obtaining all necessary licences and permits, complying with health and safety regulations, and appropriate taxation. Legislation constantly changes, so consider establishing a compliance team in order to keep up to date.
Employees
Trustworthy, reliable employees are essential to the smooth running of any business. Keep employees satisfied by providing competitive wages and good working conditions. This will help to maintain an enthusiastic, loyal and experienced workforce.
Contingency plan
Once you have identified the potential risks specific to your business, it’s important to establish a sensible contingency plan to effectively reduce the potential harm to your business. These should be thorough and dynamic, taking all variables into account. When problems do occur, be sure to assess the effectiveness of your response in order to improve your contingency plan for the future.
An effective risk management strategy involves identifying potential risks, prioritising the highest threats and taking preventative action. It’s also important to establish a protocol to deal with any potentially damaging situations in order to minimise their harmful effects, and maintain the profitability of your business.