Risk Assessment – why it matters to your business
Every business is exposed to a multitude of risk factors, but businesses with a sound risk strategy in place are in a much stronger position to weather any adverse effects, should things go wrong.
The first step to protecting your business against risk is to conduct a thorough risk assessment which should:
- Identify: what risks exist
- Estimate: the likelihood of risks occurring
- Measure: the potential impact of risk on your business
- Explore: viable risk management plans
Once your potential risks have been clearly identified, you’ll be in a better position to decide how to manage them. Options may include insurance, employee training, equipment upgrades, stronger contracts and documentation processes, or procedural reviews.
The biggest risk you can take in business is not to conduct a risk assessment!