Running a successful business requires you to take risks almost every day. How you go about managing those risks can often determine whether or not you experience long term success. We highlight below our top 10 tips to manage risk, particularly when you’re trailblazing in business.
Find trusted advisors
Retain advisors with the appropriate skill set to assist you, and develop a relationship with them such that you can draw on their skill set and expertise whenever you need it. There are many ways to do this, such as taking them in-house or consulting with external advisors on a regular basis.
Consult early
Seek out the advice on your risks before you are facing an imminent problem. More can be done to avoid a situation from occurring when you have considered the risks from the outset and taken steps to manage them.
Consult often
Dealing with many small situations as they arise can assist in moving things forward efficiently. Dealing with problems as soon as they arise can also avoid the situation becoming too complex and ultimately creating a mental hurdle for those involved to overcome them.
Know what your risks are
Conduct regular strategy sessions around what risks you currently face, and possible risks on the horizon. You can’t plan for them if you don’t know what they are.
Develop a risk appetite
Know what level of risk you’re generally comfortable with accepting, and consider how you will determine whether to accept certain risks above and beyond that level. This should be determined after consultation with key decisions makers of your business.
Have a plan
If you’ve properly considered the risk in relation to a certain situation, and determined that it’s worth accepting in the circumstances, put a plan around managing it. When you’re aware of the risk, you can put strategies in place to minimise your exposure. There are a number of tools that you can use to effectively manage your risk. Which tools might be appropriate in the circumstances depend on the situation and the risk that you’re effectively trying to manage.
Follow the plan
If you’ve gone to the effort of considering the risk, taking advice and putting a plan in place, then you should ensure that the plan is being followed.
Train your team
It’s one thing for management to be aware of a risk and know the plan for managing it, but if its your team that’s dealing with it on the day to day then training should be provided to them to ensure that everyone is taking steps to manage the risk.
Review the plan
Don’t adopt a set and forget approach. Risks can change over time as more information comes to light or situations change. Set intervals for which you will revisit the plan and make any necessary changes at the time.
Learn from experience
Certain issues may not be foreseeable at the time when considering your risks, particularly where you are trailblazing. As issues arise and are dealt with, take the opportunity to benefit from the learning by immediately making changes where appropriate to avoid the same issues from arising again.
Once you’re on top of these, you’re ready to push forward with confidence knowing you have a solid strategy in place to protect your business.
For assistance in implementing the above, contact our team on 1300 941 900 or email tboorman@boormanlawyers.com.au. Our LSPs may be the perfect option for you.