Having a clear and realistic long-term plan in any situation is important if you desire to achieve positive results.
Whether your strategy is focused on your business as a whole, or perhaps key elements of your company such as its sales, marketing, or staffing, strategies can pose risks to your business as they are encouraging change and should be thought about and reviewed regularly.
Failing to take account of business risks within your business strategy can have consequences for your business and those with an interest in its affairs.
That’s why we’ve compiled three answers to the potential response you may have to the title of this post, does your business strategy take account of business risks?
- Absolutely! Yes, my business does take account of business risks.
It’s good practice to consider the risks associated with an action which you may label as essential to get you to where you wish for your organisation to be. Good job for thinking about business risks!
But remember to assess any risks associated with any strategy for your business on a regular basis – we’d recommend quarterly or annually – as risks do evolve.
- I’m not too sure whether my business strategy takes account of business risks…
Ultimately, if you have a one-year, three-year, five-year, or maybe an even longer plan for your business without assessing the risks associated with it, you’re leaving yourself susceptible to obstacles.
But don’t worry because, you’ll be pleased to know, you can swiftly identify risks associated with a specific business objective by conducting a simple SWOT Analysis.
By identifying an objective that will help you towards achieving your long-term strategy, and listing the strengths, weaknesses, opportunities and threats concerning this, you’re already compiling a list of the risks which may arise too.
This approach may help you with being proactive at mitigating risks from happening as you’ve identified the potential issues already.
We believe weaknesses and threats uncovered as a result of your SWOT Analysis can be turned into positive opportunities for your business. Speak to us if we can help you with this!
- My business strategy doesn’t take account of business risks.
A strategy is typically split into several objectives, also known by many as key results.
All of the key results aligned with the strategy must be completed in able to achieve what you set out to gain.
Although every objective/key result does come with its risks. You should take account of business risks belonging to these various objectives to prevent any unwanted headaches down the line.
Speak to Crimson Crab for further information about how to take account of business risks with your strategy today.