Acknowledge the risks facing your business and be ready to take action

Our minds can be a powerful tool when it comes to addressing matters which could have a detrimental impact on business.

What’re we talking about? Risk.

The attitude towards the urgency of addressing risks for business often comes too late.

Managing business risks may seem a daunting task – especially when there are countless types of risk out there.

But it’s important to understand not all risks should be approached and managed in the same way. Every case is unique and may require varying actions.

The type of risk you as a business owner may face can alter from one extreme to the next.

These may be:

  • Economic risks
  • Compliance risks
  • Reputation risks
  • Competition, or comfort, risks
  • Security and fraud risks
  • Financial risks
  • Operational risks

Failing to manage risks can affect your reputation and, in some worse cases, sink the company you are invested in. Now that’s something nobody would like to happen.

But tackling risks doesn’t just stop at the initial hurdle of acknowledging them; new risks are frequently appearing within any business so it’s necessary to evaluate and execute risks on a continuous basis.

A policy, process or procedure should be implemented within your business on how you deal with risk when it arises.

It’s no good having an attitude of “this is something we need to sort now as it has been brought to our attention recently” as it’ll be too late to address.

It’s good practice for business people to be proactive towards doing something about the risks a company is faced with before it’s too late.

Don’t be ignorant about the risks you face.

Compliance model – driving the culture of the organisation to be compliant.

Things to think about before Brexit

If you haven’t already thought about it there are some things that you will need to do to prepare your business for Brexit.

Especially if you:

  • import or export goods or services to the EU,
  • exchange personal data (including customers’ addresses, staff working hours or information you give to a delivery company) with an organisation in Europe (this includes using websites or services hosted in Europe & processing personal data from Europe), or
  • you use or rely on intellectual property (IP) protection (this includes copyright, trademarks and patents).

There is a useful step by step guide at https://www.gov.uk/get-ready-brexit-check

Respond to regulatory regimes

The regulators’ purpose is to ensure there is a level playing field and protect the weaker party in any transaction (which is usually the client/customer).

If a regulator has cause to investigate a business, they will try to demonstrate insufficient control over business processes.

It makes sense to be in a position to show that you have done everything possible to comply and that you carry out checks to make sure that your procedures work.

That way the regulator will be more likely to help resolve compliance failures, rather than take enforcement action which can prove costly for a business.