Tips for good risk management

Every business is likely to face risks, whether you're just starting out or have been running for a while.

Having good risk management practices can help to reduce the chance of undesirable events happening. If they do occur, having a risk management plan can reduce the negative impact on your business.

Here are some tips for risk management that every business should know.

Manage risk every day

Risk management should be a part of your daily business routine. For each decision you make for your business, you should think about the possible risks involved. This information should be recorded in a risk management plan.

Everyone in your business should be encouraged to regularly look for and manage risks in their work area. This will improve the safety and performance of your business.

Keep your staff  updated on workplace health and safety as well as security  drills. In an emergency, your staff will be quicker to respond and be able to reduce the chance of further damage.

Understand the risks in your business

Risk management plans should be suited to your business needs. You should look for risks and ways to treat risks that best your business.

Risk management strategies will be different for each business.  A fire hazard risk is higher for a restaurant than for a hair salon because of the nature of the business. Because their risk levels are different, their strategies to prevent and manage fire risk will also be different.

Train and involve your employees

Train your employees in risk management methods as part of their introduction to your business. This should also be a part of regular training sessions.

Keep copies of your risk management plan where your employees can see them. Make sure they know where to find them and when you have updated them.

You should also encourage your staff to give feedback on ways to improve your plan.

Update your plan regularly

You should update your risk management plan when internal or external business conditions change.

You should assess risk many times during the year to check old risks and identify new risks for your business. Your risk management approach should be based on information such as your experience, stakeholder expectations, forecasts of future events, or an expert’s opinion.

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