If your most recent risk assessment shows that your business has a high level of risk, it may be time to start thinking about how to address them. Safeguarding your business from possible risk usually involves making one of two choices: first, risk avoidance – i.e., avoiding activities and commercial opportunities that present a high risk – and second, actually changing your business practices and working conditions in order to positively combat the risks you currently face.
While the first option may be beneficial in the short term, the second is undoubtedly the choice with more long-term potential. By positively addressing your biggest risk factors and adopting a risk mitigation strategy, you’ll be bolstering the foundations of your business, preparing it to absorb shocks and weather storms in any volatile years that may come.
Steps To Implement Risk Mitigation
Large, multinational companies often draft in consultants and contingency experts to help them implement comprehensive risk mitigation strategies. However, if you operate a small business, there are some simple steps you can take without bringing in the experts. First, ensure your business data is backed-up and protected. This may involve employing an external data storage company, who will sync your system with an off-site data centre. So if your commercial property should experience an event that leads to your on-site servers being damaged or compromised – like a fire, flood or a security breach – your data will still be accessible from these off-site servers.
You may also wish to establish how your business will operate if your premises should be damaged and rendered unworkable. Some small businesses may be able to operate with all their employees working separately at home. However, this requires the setting up of a reliable virtual system that lets all workers access their emails and work files remotely. Others may prefer to move to a temporary serviced office that can be paid for on a monthly basis until the original commercial property – or a completely new one – is fit to be used again.
Power and Temperature Control
It’s also important to prepare for risks that may affect certain parts of your business but not others. For instance, if a large proportion of your energy comes from natural sources – like tidal, wind or solar power – it may be advisable to have a plan in place for generator rental. This ensures that you have an electricity supply in place should these sources of energy be affected by changes in weather.
Similarly, if your office operates in severe temperature conditions – for example, in a very hot climate or a very cold one – a breakdown in your temperature control mechanism could be disastrous for your business. Ensuring that you have back-up heaters or air conditioning in place – usually, by making arrangements with a rental company – means that business can continue with as little disruption as possible.
By Mckechnie Nadia