1. Look back at the challenges you’ve faced since starting a business
Some of these obstacles could come up again in the future, so think about how you dealt with them, what the results were and how your response could improve next time.
2. Consider the other risks your business faces
Every business and every industry has its own set of risks to contend with. But what are yours? Only when you’ve identified potential causes of disruption can you start putting measures in place to avoid or lessen the negative impacts.
3. Talk to peers about their risk management strategies
If someone in your industry is further in their business journey than you, there’s a good chance they’ve dealt with more disruption – find opportunities to learn from their experiences. Chatting to others means you could find new risks you hadn’t thought of, but also tested ways of managing them.
4. Identify the essential areas of your business
What does your business need to run smoothly? Some areas – like personnel, cash flow and technology – are relevant to everyone, but there may also be areas that are unique to your business. Whatever you identify here should be your priority when creating mitigation and response strategies.
5. Look at non-critical functions
These should still be part of your continuity plan, even if they’re not vital in the short term. Take marketing, for example; your business may be able to survive for a short period without it, but in the long term you’ll still need to reach new customers.
6. Take steps to minimise the risk of disruption
Some types of disruption are in your control, and a bit of short-term investment – whether time-based or financial – could save you stress and money in the long term. Some basics to start with are enhancing your level of business insurance and installing the latest security updates on your computer system.
7. Avoid taking shortcuts
Cutting operational corners will leave you more open to risk. Cleaning is a great example; if it’s not done properly, the chances of an employee or customer slipping and becoming injured will increase – you’re then at risk of closure and even legal action. This is just one area where professional support is easily justified; others are marketing, accounting and property maintenance.
8. Keep up with regulation and legislation
In the age of Brexit, climate change and Covid-19, business regulations and legislation are constantly changing. If you’re to minimise the risk of fines and fees, you’ll need to stay up to date with the rules affecting your business.
9. Make step-by-step plans for unavoidable disruption
As the pandemic proves, some obstacles are out of your control. What you can control, though, is your reaction. Having real, actionable ‘what if’ steps written down before something big happens will help you to create and test a disaster plan that focuses on the essential areas you identified earlier.
10. Revisit and revise your strategy regularly
The risks your business faces will evolve – some will ease, others will grow and new ones will develop. Your approach to risk management must evolve to account for these changes, so make it part of your plan to audit and revise your strategy at regular point of the coming months and years so that you’re always prepared.
