Avoiding Unnecessary Risks
Business and life are by their nature risky. You do have to take risks in order to survive, let alone to thrive, but taking risks should not be a problem. The key is to manage your risks so the dice are loaded in your favour.
Research has shown that businesses that create a dynamic and flexible risk management strategy have a better understanding of their commercial environment and are subsequently likely to be more successful and profitable.
Barnes Roffe has helped numerous businesses manage their risks by instilling a multi-stage process into the daily operations of the business. Used properly risk management can not only help reduce the likelihood and impact of bad things happening, but can also identify commercial opportunities for you.
Often your competitors will have the same risks as you. If you respond to the risk quickly and effectively you can easily establish a competitive advantage over your rivals.
At Barnes Roffe we never forget that it is your business. We all have our own attitudes to risk and successful businesses ensure these are reflected in all aspects of the business operations. However, when the business is owned and managed by more than one person, it is essential that all the owners understand each others individual attitude to risk.
Identifying and assessing the risks
Risk management is an ongoing process. New risks will appear almost on a daily basis and old risks will rise and fall in prominence. We can help you identify the risks that your business is exposed to and create a process to ensure new risks are identified as and when they arise, by looking at 5 areas:
We can show you how likely each risk is and the possible impact it may have on your business. This information can be graphically plotted to clearly display what are your key risks.
Armed with the knowledge of what your key risks are we can help you devise a plan to reduce or mitigate the risks. There are only 5 types of action you can take and sometimes a combination is required.
- Removal from the risk – do not act in a particular arena.
- Share the risk, e.g. insurance.
- Contingency plan – do nothing now but know what to do if the situation occurs.
- Reduce the risk – take action to reduce the likelihood of a risk occurring, or reducing the impact if it does.
- Do nothing – ultimately you have to accept a level of risk.
Our knowledge and experience will help you identify the most appropriate course of action.
Risk management is only a worthwhile process if you take action on your findings. We will help you create an action plan dedicated to managing your risks more effectively.
Part of your action plan will be the creation and constant updating of a risk register. This is essential to ensure your business is not exposed to unnecessary risks and that you fully understand your risks and how each risk is being mitigated. Our process will enable you to create this register in an easy to understand format.
Your business is constantly changing so your key risks are also changing. These changes need to be identified and assessed promptly. By designing a dynamic review process we can ensure that as your circumstances change any changes in key risks are responded to appropriately.
Often doing nothing is the riskiest action of all!
Barnes Roffe can help you improve your profitability and protect yourself by guiding you through the risk management process.Talk to Barnes Roffe today Barnes Roffe has tried to ensure that the contents and information it provides in its website is accurate at the time of posting. Unfortunately it cannot guarantee the accuracy of contents or information contained in its pages and any person choosing to act on this information should contact a Barnes Roffe partner prior to taking any action