How can risk be minimized

If you would like further advice on risk management, the following links may be of interest: Health and safety executive website , where you will find industry specific advice As well as the top 10 risks mentioned above, be aware of other risks to your business.

Good general guidance is available via Business Link The Institute of Risk Management provides a useful free risk management guide. Categories Insurance FAQs. HR tips. Need some help? Follow us Facebook Twitter LinkedIn. Get a quote now. Related articles Disaster recovery planning: step-by-step infographic. What is professional indemnity insurance? What is a breach of confidentiality? Employing staff: what are the legal implications?

The first step in implementing procedures to help minimise risk is to identify any risks that the business may face, whether it be internal or external factors. If something were to happen in the economy, how would this effect the business?

If prices for certain materials increased globally, how would that effect the business? Risks posed by customers — Is there a specific client base that the business relies on to generate a substantial portion of their income.

Risks posed by financial transactions — The liquidity of the business pairs with how well the business can operate. If a business has poor cash flow, it runs the risk of not being able to repay its debts with the directors potentially being liable.

To manage the liquidity of a business and to assist with minimising financial risk the business can implement cash flow reviews, which will be monitored on a weekly, monthly or quarterly basis, to assess the cash in and out of the business.

This also helps identify areas in which a business may need to reduce costs and provides areas of focus. Risks posed by information technology — If a business relies heavily on information technology and cannot operate without it, the greater the risk if an event were to occur and the technology could not be used. If a system were to fail during an important period, it has the potential to effect the revenue of a business.

To assist with mitigating information technology risks a business should ensure that all laptops and desktops have the appropriate security software installed, performing back ups daily, protecting certain networks and servers a business relies on and providing appropriate training to all staff. Once risks have been identified within a business, a decision needs to be made on the likelihood of the situation occurring, and if it does occur the severity.

Firstly, assess the likelihood of the risk occurring and separate this into three categories: low, medium and high. Five Ways to Minimize Risk Exposure. August 16, Changes to an existing process or the implementation of a simple procedure are often all that is required to reduce risk to an acceptable level.

When the potential loss resulting from a risk is less than the cost of implementing a risk mitigating control, get senior management to accept the risk and move on to more unacceptable risks. Sometimes enterprise, IT and vendor risk management professionals forget that businesses must take some risks to succeed. Launching innovative new products can be risky. Does this topic resonate?

Reach out to Randall: he can present it to your group. RandallCraig Follow me for daily insights www. If you are interested in receiving these each week there is no cost , fill in your name and address below. What is bad is unnecessary risk. This simple framework can help: Step One: Identify all of the potential risks. Organizations who purchased pandemic insurance prior to COVID have a far more positive future… These five steps make a lot of sense, but when considering risks — most organizations — go in the opposite order, starting with insurance, then disaster planning, and maybe, just maybe, monitoring.

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