If something happens to your business tomorrow, are you ready with solutions? Are you prepared to take action?
Risk management is the process of identifying, assessing, and dealing with risks that your business could face in the future. With a risk management plan on hand, you and your staff will be prepared to resolve any issues that could come up anytime.
Here are some tips to help you create a risk management plan for your business.
As entrepreneurs, you should take the time to learn about your risks. How will they affect your business operations?
To identify risks, it would help to assess roles and functions within your organisation. Determine those that could create a negative impact on your business when their functions or processes are disrupted.
Consider brainstorming with your staff to identify external risks. Furthermore, review records or documents for any unresolved or ongoing issues that may need your attention.
Some questions that could help you identify risks are:
- What will happen to our business if a key employee resigns or needs to go on extended leave?
- Do we have systems in place for natural disasters?
- What will happen if our computers are compromised?
Once you’ve identified your risks, the next step is to find out their risk levels.
To assess each risk factor, establish how likely it is to occur and how often it could happen at a given time. Then, determine the impact it will have on your business. How much profit are you going to lose? Will you have to stop business operations as you resolve issues?
After assessing your risk factors, it’s time to start working on your plan.
First, decide who will be your point person during a disaster or emergency. Then, create a response checklist that your staff will need to follow.
Your plan and checklist should come with clear instructions to avoid confusion. Furthermore, identify the roles that key people in your business will need to take during an emergency.
Make sure your risk management plan is accessible to everyone in your team. This way, anyone could start implementing your plan and response checklist when the situation calls for it.
Protect your business against risks. If you have not created a risk management plan yet, now is the time to take action. Get in touch with Kidmans Partners. We provide risk management solutions for all types of businesses.
Call us at (613) 9836 2900 or fill out our contact form to learn more about our services.