Research your local area for any risks that are likely to affect your business. Look into the history of the area – this can give you an idea of the pattern and frequency of natural disasters such as drought, storms, fires, and floods. It can also provide a history of criminal activities like theft.
Document all of the likely risks to your business in a risk table to help you think through what could happen and what to do if it does. Your risk table should include the below fields:
- Risk: Description of the risk and the potential impact to your business.
- Impact: Rating of the impact to your business: High, Medium or Low.
- Likelihood: The chance that the risk will occur: Highly Unlikely, Unlikely, Likely or Highly Likely.
- Mitigation strategy: What actions will you take to minimise/mitigate the potential risk to your business?
- Contingency: What is your contingency plan in the event that this risk happens?
What to do...