How can companies manage business risks?

How can companies manage business risks?

If the past few months have taught us anything, it’s that business risks are very real. The good news is that now we’ve all had to manage certain business risks, we know how important it is to have a procedure in place and ensure that we are able to effectively manage the risks that our businesses may face.

We’re taking a look at how companies can manage business risks in order to remain compliant and minimise damage.

What kind of business risks should you be aware of?

First things first, there are many different kinds of business risks. Some of these are easier to manage than others, but all of them should be considered when creating a risk management plan.

  • Compliance risk: this includes risks that a company is required to comply with by law. These may include things like minimum wages and health and safety regulations.
  • Strategic risk: this is the kind of risk that is normally dictated by the market and external factors, such as the demand for the product or the economic state of affairs.
  • Financial risk: this kind of risk refers to the financial state of affairs of a business and their risk of struggling financially.
  • Operational risks: These are the risks that occur in the day to day running of the business and may impact profit. For example if some essential piece of equipment breaks.

1.Ensure that you’ve effectively identified risks

One of the first steps towards managing any risk is accepting that it is there. Carrying out a full risk assessment on your business will help you identify where your business could be vulnerable and minimise the likelihood of notable events occuring.

Remember that risk triggers can be both internal and external, and it’s important to think about any external influences that come into contact with your business. That includes contractors and visitors to sites, who can often present some of the greatest risks.

2. Ensure that measures are set out to manage those risks

It goes without saying that compliance is key, so ensure that you understand how to comply with your legal obligations when it comes to risk. You will need to keep records and ensure that you can prove that you’re effectively managing risk, so sitting down and working through how each risk is to be taken care of is essential.

A good place to start is by looking for an effective safety management software that will help you get a grip on how your risks evolve from day to day. You should take measures to manage risk such as:

  • Report risks, incidents and injury
  • Record actions taken following a risk
  • Create automated workflows and reminders to keep everyone notified
  • Create dashboard reports to keep on top of what risks the business might be exposed to

3. Delegate and share the risk responsibility

Once the risks have been established and you have decided how they will be recorded, it’s time to decide who will have responsibility and authority to manage those risks. This is an essential step, as everyone needs to take responsibility for risk and it’s important that the responsibility for recording those risks is shared.

4. Update risks in real time

In order to manage business risk, it’s essential that you’re able to provide real time data. A software solution that allows you to synchronise safety management systems with staff ID and card machines will allow you to keep up to date with exactly what is going on and who is moving around your organisation each day.

Having a risk register that configures your risk in an ISO friendly framework and allows you to create customised rules and workflows will be essential to help you keep your risks updated and managed.

Are you ready to manage your business risks more effectively? Discover our range of software options that will help you discover and report your business risks effectively!