Risk Management Plan – Business Risk Assessment & Mitigation
What keeps business owners awake at night?
Research shows more and more business owners are looking to have a plan in place, to give them the peace of mind that comes with knowing their assets are protected.
Risk minimisation helps improve the value and sustainability of your business.
A Risk Management Plan works to protect business & family assets – and income stream.
One of the first steps in a Risk Management Plan is to assess the key problems in your business – how do they expose you to risk.
Where is your business at risk?
Analysis
When starting a business, owners generally give little thought to protecting their business assets. This is because the early stages require a lot of focus ‘on the ground’ – with the start-up checklist. Also, businesses at this stage often hold few assets.
As profit grows – protecting assets and assessing risk in the businesses becomes a more important issue.
Owner reliance
Most business owners instinctively know that without them being there, the business would have major challenges.
However, they struggle to formulate a plan of action that allows them to work on the business rather than in the business – all the time.
It’s a major source of stress and pressure and it impacts a healthy work-life balance. It often also leads to stress in family life as well.
Declining sales, profits and cash flow
No surprises here – all business owners are balancing rising costs and the impact on their profit and cash flow.
To lower this risk, look at solutions to increase profit margins and productivity. You want to work smarter – and increase your profits without increasing the stress on the business.
What is the solution?
All of the above problems are fairly common in business. The good news is – for most business risks, there are solutions!
The first step requires a thorough review of the risks facing the business, by conducting a Risk and Value Driver Assessment (RAVDA).
This includes assessing things like
- the industry the business is in, which trends and policies affect its future
- current business performance and how it sits against industry benchmarks
- what business growth opportunities exist
- owner reliance and consequences
- customer and market demand
- staffing issues
This assessment will become the foundation of the ‘de-risking process.’ This will involve either
- eliminating the risk
- accepting the risk
- reducing the risk
- transferring the risk either in full or partially.
How can we help
We are experts in assessing and minimising risk in business. We can tell you where your weaknesses are and where opportunities for growth lie.
We will help you put together a Risk Management Plan tailored to your needs.
Contact us today if you want help from the experts to devise your Risk Management Plan.
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