It can be easy to neglect risk planning when you first open your start-up. However, it is very important to attempt to assess the levels of risk involved in your business activities in order for you to try and come up with ways to reduce them. This article will mainly cover general risks involved with business, although your enterprise may have additional specialised risks related to the industry you are in.
Risk management is a process of continuous analysis of your business practices and a lot of communication at all levels of your organisation. You also need to identify potential hazards and a ‘worst case scenario’, and then work on devising contingency plans in case they ever occur. If something goes wrong it can be very reassuring to have a plan to work from to restore the status quo.
Business insurance is an integral part of risk management in order to make sure that you are compensated or protected if something goes wrong. You must first consider what needs to be insured (e.g. equipment / inventory / property / vehicles / employees / liability or business interruption) and decide upon a realistic amount that it is worth. It is then possible to decide what you wish to insure each item against (e.g. fire / theft / accident / everything). Make sure you get multiple quotes and choose the best one.
Things to remember:
*.
Identify Risk – If you are unsure about this, a good place to start is reading through your business plan
*.
Measure Risk – There is computer software that can calculate risk well, in addition to specialised risk consultants
*.
Decide how to Limit Risk – Brainstorm some solutions to the risk issues which are identified
*.
Implement Solutions – Put the solutions in place e.g. install a fire alarm
*.
Monitor Risk – Review the situation at regular intervals
By Strive Masiyiwa A few weeks ago I went to the doctor. I will tell you what he said about my health at the end, but first read this: Twenty years ago, I arranged to meet a well-known British international businessman who invested a lot in Africa at the time. We agreed to meet for dinner at a leading hotel in London. After a good meeting, we started to walk out of the restaurant when he suddenly collapsed in the lobby. There was total pandemonium as they rushed to get medical assistance. Being London, an ambulance arrived in minutes. I jumped in the back with him as paramedics wrestled to keep him alive. He had had a heart attack and had to have triple bypass heart surgery. Sadly he died a few weeks later. He hadn't been sick and his sudden death surprised everyone. And yet as I reflected on it, and later discussed it with a doctor friend who knew him, I realized he was very laid back about his health despite having a hectic business life. Even during our dinner...
Comments