Tips to assess and address the things that threaten your business
Even the most careful companies regularly have to confront risk. There will always be hazards that could cost your business dearly. But, at the same time, you have finite resources to devote toward protecting yourself from those hazards. As such, it becomes very important to properly assess and prioritize your risk factors.
Effective risk assessment helps your company prepare for the inevitable hazards every company faces, while also being cost-effective and efficient. When assessing your company’s risks, consider the following:
- Look at other angles—Involve a wide variety of stakeholders in your risk assessment process, including external opinions. Your customers care about your company’s well-being and expect you to provide and preserve value on their behalf, so you should consider what they might think.
- Focus on business—Whether it be through audits, internal policies or other support functions, the main goal of risk management is to help your company achieve its primary objectives. When developing your risk management plans, make sure they are set up to further your company’s overall growth and progress.
- Establish a culture of communication—Your risk management plans won’t be effective unless everyone is aware of them. Make managers and employees fully aware of acceptable behavior and risk tolerances, and create a culture at your company in which senior management is available and approachable to address questions and concerns.
- Align with auditors—Avoid seeing your internal auditors as potential adversaries who are looking for problems. Rather, consider them important allies in managing your company. Internal auditors should be seen as trusted advisors who are equally interested in the future success of your company.
- Be ready for change—Just because you assess risks to your company once doesn’t mean that those factors will always be the same or hold the same weight. New risks, such as environmental and social issues, can emerge and become more important to consider. Similarly, risks that you had previously considered to be greater threats can become less important to consider. Stay current and regularly reassess your company’s risks.
Managing your company’s risks involves multiple facets. Proper planning, safety training, and insurance coverage are just a few of the tools available. The advisors at General Southwest are experts in risk management and can help you understand your options. Contact us for assistance in analyzing your risk and developing a proactive plan for dealing with the hazards your organization may encounter.
Article courtesy of Zywave, Inc.
