ProFinance Blog

Risk Management Tips For Your Business

Running any kind of business is not without its share of risks. To assume otherwise is a big mistake. From natural disasters to hardware malfunctions, a business can live or die depending on the risk management plan that has been put in place.

Risk Management Tips

To form the basis of that plan, here are some tips that should prove invaluable, no matter what type of business you operate.

Risk Management Tips

  1. Don’t leave anything to chance. Get yourself insured for every eventuality, making sure you are covered for everything from building damage to public liability. Ensure you review the terms of your insurance policies annually, and let your insurance company know if the policy needs adapting to meet your current needs.
  1. Formulate written policies. When these are in place, many risks can be alleviated. These should be reviewed regularly, and updated to meet the demands of current legislation. Still, you need to ensure all staff members have access to them. Admittedly, not every employee will take it upon themselves to read each and every policy thoroughly, so perhaps go through them at staff meetings and training events.
  1. Have an open door policy. Not every risk is easily identified, so it’s important to implement an open door policy, allowing staff and customers alike to share their concerns, give feedback on what is and isn’t working within company practice, and suggest ways to make things better. A wise business leader will take these concerns onboard, and weigh up the pros and cons before making a decision for the business.
  1. Use the tools at your disposal. From apps to software programmes, there are tools available to help you reduce possible business risks. Examples? Well, consider MFT software when transferring sensitive files, mobile safety apps to allow workers to flag health and safety concerns in real-time, and internal-audit solutions to manage finances.
  1. Focus on employee training. There are many ways money can be saved in business, but training shouldn’t be one of the financial cutbacks. Each employee needs to have the skills to do their job effectively, and while some of this will be accounted for during the hiring process, it is still important to hold refresher courses and training for new skills learning if the worker’s job role undergoes changes.
  1. Protect sensitive information. All businesses are susceptible from attack, be that through disgruntled employees in the workplace or cyber criminals operating remotely. Therefore, information needs to be secure. Computer systems need to be passworded and updated with the latest firewalls and anti-virus software, and the business premises need to be guarded with security cameras and alarm systems.
  1. Have contracts in place. To avoid potential legal issues, written and signed contracts need to be in place across the business. From hiring staff to outsourcing work elsewhere, the business leader needs to protect the businesses best interests by ensuring all the relevant paperwork is in place.

Final word

By managing risk, the business is more secure. Considering the number of small and large businesses closing their doors for good every day, risk management needs to be every business leader’s priority.

Tina Roth

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