Have You Developed Risk Management Strategies?

All businesses operate in an ever-changing world, where different risks can affect the performance and, in some instances, the survival of the business. Some of the risks that may affect your business could be categorised as follows:

 • Commercial Risks – risks associated with the market and the sustainability of the business.
• Compliance/Legal Risks – relates to compliance with legal requirements and other regulations.
• Environmental Risks – includes consideration of environmental issues that might affect the business, including:
– weather temperatures, cyclones, storms, floods, tsunamis and droughts; and
– other environmental risks, including incorrect disposal of products.
• External Risks – risks over which the business has very little control, but to which some consideration should be given, such as:
– wars; or
– global financial upheaval, eg:
~ global financial crisis – consider current governmental problems in America
~ political uncertainty in Italy
~ continual problems in Greece
~ war in Syria
• Financial Risks – this is a very large risk area, including cashflow, debtors and stock.
• Fixed Asset Risks – damage, deterioration or obsoleteness of plant, equipment or building.
• Staff Disputes – interpersonal or structural.
• Operational Risks – includes:
– communications;
– email;
– website; or
– electricity failures.
• Organisational Risks – including:
– key management leaving the organisation;
– death or disablement of senior management personnel;
– workforce unrest; or
– workplace bullying, sexual harassment, discrimination, claims, etc.
• Reputation Risks – including unprofessional conduct and false product claims.
• Research/Intellectual Property Risks – incorrect documentation of who owns particular inventions.
• Safety Risks – safety issues affecting team members, customers and visitors to your premises.
– Have satisfactory pre-start checks being undertaken on vehicles, trains and conveyor systems?
• Security Risks – such as:
– armed robbery;
– brawls; and
– theft and pilferage.
• Stakeholder Risks – change of directors, shareholders, management team and key suppliers.
• Technology Risks – continual improvements in technology to your business, keeping up to date.
• Corporate Governance Risks – directors and management understanding their responsibilities.

Businesses need to firstly identify the risks which relate to their business, then develop strategies to minimise the risk, or have pre-prepared procedures in place, if a particular risk emerges.

If you would like to have a discussion with us relative to risk management within your business, please do not hesitate to contact us.