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How to identify potential risks to your business

Running a business today is not without its risks but by identifying yours early and putting processes in place to mitigate them, will ensure your business has the best possible chance of survival.Even though risks come in many different forms and vary from business to business, there are several that are prominent in every type of business.

We’ve identified three aspects of business that can pose potential risks and will suggest a few ways in which you, as a business owner, can mitigate them.

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1. Technology

Businesses now rely on technology more than ever before. Whether its email systems for internal and external communication or mission-critical software applications, they all pose potential risks. Furthermore, the loss of a core system not only hurts revenue but can also damage a business’s reputation.

Information security should, therefore, be at the forefront of a business’s risk mitigation strategy. After all, it seems that cyber-attacks are becoming more prevalent with sensitive information breaches occurring on a frequent basis.

Businesses need to ensure their corporate firewalls; AV systems and other network security protocols are regularly updated and routinely tested for flaws. Employing cyber security specialists can help you identify all your significant technology risks. Using a trusted provider of these services can allow your business to benefit from enhanced protection going forwards.

 

2. People

 

Your people are probably your biggest assets when it comes to running your business. Therefore, you need to treat them, in terms of risk, accordingly. Without your employees your business cannot function and, therefore, will cease to trade.

Unfortunately, stress is a big risk factor when it comes to employee welfare and can have a detrimental effect on the business. Line managers need to be trained accordingly to spot the early signs of stress and offer support and advice for affected employees.

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3. Supply chain

You will inevitably have an established supply chain that your business relies on. However, supply chain risk factors can be extremely disruptive and often occur with very little or zero warning.Therefore, businesses need to identify risks at every stage of their supply chain and mitigate them accordingly.

Supply chains are particularly vulnerable if you rely on suppliers from other countries for your business to function. Political problems and other disruptions can see international supply chains broken overnight.

For example, the on-going issues in Ukraine are having a huge impact on businesses that have come to rely on the country for their vital supplies. But it’s not just Ukraine-based suppliers that are being affected. Russian companies too are operating under extremely difficult circumstances, which are affecting their ability to fulfil their supply duties.

Businesses need to establish sustainable supply chains in the first instance. As a precaution, secondary suppliers should also be identified and mechanisms put in place to utilise them should the need arise.

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