What is risk management?

Risk management is understanding any business-related roadblocks before they appear and being in the position to deal with them effectively should they occur, without incurring any major losses.

There are three key words for effective risk management; identify, understand, and control. And a robust risk management strategy covers all key areas in your workplace, from protecting your people property and everything in between.

A decent risk management process is an ongoing partnership with specialists who understand you and your business and will help to ensure that you are prepared for eventualities that may lie ahead.

Why do I need a risk management strategy?

Whether you’re operating a small business on a single-site premises, you shouldn’t underestimate the importance of having a strong risk management strategy in place.

As a simple scenario, imagine if some key machinery in your factory breaks down. If there is a risk management strategy and solutions ready to action, there’ll be a contingency plan in place that ensures new parts, or a replacement can be swiftly delivered. This will help mitigate any financial shortfalls that may happen until you are back up to full speed.

Without a robust risk management strategy in place, problems – from fleet vehicles being repaired to a serious accident at work – have the potential to exponentially grow to significantly to interrupt your business, whether that’s temporarily or even permanently.

In the case of a less tangible but equally serious threat, such as your digitised customer records being stolen and shared, do you have a watertight solution in place in the event of a cyber-attack?

With an agreed risk management strategy, you’re not simply protecting your business from those possible challenges, but also becoming more resilient and futureproof, as well as providing customers and employees with confidence that you are prepared for curveballs.

What are the key benefits of having a risk management solution package?

A risk management process is more than a safety net from the fallout of a business challenge.

The standout benefits are:

• It will provide protection for your business, assets and people
• Provide peace of mind to both you and your insurer
• Improve business resilience by having a plan in place
• Potentially save money on your insurance premiums
• Improve business reputation through a good safety culture and robust continuity plans
• Provide opportunity, which puts you ahead of the competition while helping you obtain best terms from insurers and suppliers?? Very dubious – not sure about this nor what it means??

A large number of UK businesses close for good following an unplanned or catastrophic event.

The “what if…” question takes us full circle back to those three words that are at the heart of our risk management practices; identify, understand, and control. By understanding the threat, impact and opportunity and addressing these accordingly, you are putting your business into a stronger place for strong operational continuity.

If you want to talk to one of our team about Risk Management, please get in touch.