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How to Conduct a Business Risk Assessment

Just when everything seems to be going well at your business, this is exactly the time when disaster can strike. However, if you have conducted a proper risk assessment, it is more likely that you will be able to see the issue coming and take action against it. With this in mind, let’s take a look at how you can go through this process thoroughly.

Work Out the Risks of the Company

Different companies obviously have different risks attached to them, so it is worth taking your time to identify the individual issues of your own business. First of all, you have the security issues to think about – whether these are from a physical or a digital standpoint. You should also look at your own business structure for any evidence of risk there. For example, do you have an overreliance on a single client? This could be a case of putting all of your eggs in one basket, which can end up hitting your company negatively.

Identify Risk Owners

The risk owners are the people within your organisation who are in charge of each individual area of risk. For example, you will have somebody who is in charge of dealing with fire safety, as well as some qualified first aiders on site. There should also be people who are dealing with more abstract issues such as business interruption, equity risk and legal challenges. While you may not have somebody on site dealing with these issues, you need to know who you are going to outsource the problem to in the event that it needs taking care of quickly.

Mitigate and Reduce Risks

Once you know the risks that you are facing, it makes sense that the next step is to mitigate and reduce them in any way that you can. For example, if you are facing the risk of a security problem, you can install cameras, alarms and secure your premises. This is not to mention all of the digital security that you need to engage in, such as ensuring that you have all the proper antivirus software, your staff are fully trained against cyber-phishing and your files are fully backed up. On another tangible issue such as fire safety, it is important that you take care of fire door servicing, as well as ensuring that your business has an effective strategy for getting people safely out of the building and performs regular drills.

Assess Risk Impact

While it is difficult to predict entirely what sort of consequences a risk is going to cause to your business, it is worth estimating this as accurately as you possibly can. This way, you can be fully prepared for what you have in store ahead of you and it is less likely to cause a shock to the system.

Revisit the Issue

Rather than simply assuming that your work here is done, it is important that you go back and revisit the issue. This way, you will be prepared for any business changes that have occurred.

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