It is not a secret that businesses, all businesses, may it be small, medium or large, face risks. With this, as a business owners, it is highly recommended that as early as possible, you are aware on how to properly handle these risks.
For Marika Tolz, an experienced executive who worked in multiple reputable companies, know that risk management is very important to all departments of the business, financial, HR, operations, executive, etc.
Some see risk management as a completely challenging and complex work to accomplish flawlessly, but, as hard as it seems, this should be resolved and worked on rightfully to avoid losses.
There are many ways a business can somehow minimize risks, and to start with the risk planning management, here are a few things to consider:
- What really matters
Know what really matters for your business before creating a risk management plan. Through this, you can create a plan specific to what is important for your business. Do you need to include social, political, religious, and cultural issues, how about technology, competitive and economic trends.
Before creating a plan, you have to establish factors that are important for your business.
- Consult with the business stakeholders
It is also recommended that you encourage your stakeholders, employees, clients, suppliers, sub-contractors, contractors, government agencies and the like, to give their feedback.
If this you do, you can easily identify what are considered high and low risk. And also, these stakeholders can contribute pretty well on proper management of risks, especially that they are personally involved with the business process.
- Identify the possible risks
Identifying the risks can be easy especially if you are completely aware of your business movement and operations. There are many ways you can identify risks, some of which are revisiting old data of customer feedbacks and complains, incident reports, and surveys, discussing issues to customers, advisers, suppliers and staff, reviewing safety and hazard reports and so on.
This may be a bit time consuming, but the result you can get from this can help you minimize risks that will occur in your workplace.
- Analyze the identified risks
Now that you were able to analyze the risks that may occur, the next thing you have to do is analyze each of the risk identified. What is the likelihood of the same issue occur again? What are the extent of damage it may bring in case it occurs?
You can rate the likelihood and the extent of damage of the risk, so you can easily assess which of these risks should be prioritized.
- Create a plan to minimize the risks
Now that you are done analyzing the risk, the next step is to plan on how to avoid or minimize the risk from occurring. Together with your existing team, it is highly encourage that you hire a highly reliable team, that can share inputs and helpful services to ensure that the risks identified will not occur or at the least impact the business at a very minimal level.