John Warren, of business growth consultancy Matchbox Associates, a Boost & Co member, offers a five-step process for identifying the biggest risks to your business.
No matter how good our strategy or business plan is, a key factor in whether we achieve business success is the way we deal with uncertainty or risk. Risks are generally unplanned events that can have a positive or negative impact on business performance, and they can arise from a whole range of internal or external factors. They are defined by ISO 31000:2009 as “the effect of uncertainty on objectives”.
A simple risk management system that identifies and plans for these events can be enormously helpful, and can avoid the need for management teams to deal with risk in a purely reactive way which has the potential to result in crisis management. The following simple five-step process to developing a scored risk register can be adopted by any business:
|Loss of Ops Manager
|Identify and develop potential successor
Once the risk register has been developed it should be reviewed by the management team on a regular basis. If it’s helpful, categorise the risks according to whether they give rise to an opportunity or a threat and deal separately with those that offer growth potential and those that offer a negative challenge.
It’s a simple and effective tool that hands control back to business owners and allows key issues to be addressed in advance of need.
Boost Business Lancashire has a wide range of support programmes available for businesses looking to grow. To discuss any of these programmes further, contact us on 0800 488 0057.