4 Positive Steps To Take To Reduce Business Risk

All businesses in the UK face various risks. It doesn’t matter what industry you operate in, either. No business enterprise is immune to potential downfalls. There is always the possibility of accidents occurring in the workplace, or unforeseen circumstances leading to a loss of business income, customers and so on.

In order to mitigate and avoid as many risks as possible, it’s important to follow some positive steps aimed at reducing business risk, keeping your business both safe and profitable. 

#1 – Study Your Industry and Operation To Pinpoint Potential Risks

Every industry is a little different and so is every single business. While some risks might be present in all commercial enterprises, there are likely going to be risks attached to your specific industry and, more than likely, your unique operation.

The first step in being able to avoid certain risks is to be able to recognise business risks beforehand. One way to achieve this is to study your particular industry, and even your competitors, to determine what some common risks are. If you’re on friendly terms with your competition, you could even quiz a rival business owner on what problems they’ve faced and had to find solutions for.

What you want to be able to do is avoid having to come up with a solution after a problem has eventuated. Ideally, you’ll be able to recognise a potential issue and do something about it before anything has a chance to occur.

Unless you’re aware of what the risks might be, how can you possibly do anything in order to pre-empt them? 

#2 – Formulate a Risk Management Plan

As you’re searching for and logging risks that could possibly affect your business in one form or another, write them down and start to formulate a risk management plan. Part of the plan will be made up of the risks you’ve come up with, but a secondary part will be adding in solutions to mitigate or negate those risks.

In addition, for any risk that does become a reality, you’ll need contingency plans to solve the problems created by the accident, mishap and so on.

Once you’ve compiled your risk list, label each risk according to its potential to occur, and how big an impact it would have on the business if it did occur. This will help you learn which risks are more urgent to focus on and which can be dealt with at a later date. 

#3 – Purchase Dedicated Risk Management Software

To help take your risk management to the next level and make life easier for you, your management team and your staff, it might be wise to consider buying dedicated risk management software. This is ERM for risk professionals (as in, risk managers), but can be employed by any business wanting a helping hand from technology.

Not only will the software analyse your business and alert you to potential risks in your business operation and processes, you can even compile and print detailed reports for staff members to look over during meetings. This type of software makes monitoring your business and keeping it safe from problems a breeze.

Your investment in this type of software is tax-deductible, but even more important, it could potentially save you countless dollars in business losses by helping you keep a keen eye on your business. 

#4 – Hire a Professional To Be Your Full-Time Risk Manager

To really ramp up your risk management efforts, along with dedicated software, you could hire a risk management professional to take charge of all your risk and compliance management requirements. This might not be a viable option for a small business, but medium to large-size enterprises would be well-served to have someone on the task full-time on a daily basis.

Your risk manager can liaise with staff, management and the business owner to help develop risk management strategies, as well as help train staff in safer and more efficient work practices.

For bigger business, combining risk management software with a risk management professional is sure to be a winning combination. 

The Takeaway

Effective risk management is first about being aware of what the risks are, then putting a plan into action to prevent those risks from becoming a reality. Risk management software and a professional risk manager are worth serious consideration.

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