It can be easy to neglect risk planning when you first open your start-up. However, it is very important to attempt to assess the levels of risk involved in your business activities in order for you to try and come up with ways to reduce them. This article will mainly cover general risks involved with business, although your enterprise may have additional specialised risks related to the industry you are in.

Risk management is a process of continuous analysis of your business practices and a lot of communication at all levels of your organisation. You also need to identify potential hazards and a ‘worst case scenario’, and then work on devising contingency plans in case they ever occur. If something goes wrong it can be very reassuring to have a plan to work from to restore the status quo.

Business insurance is an integral part of risk management in order to make sure that you are compensated or protected if something goes wrong. You must first consider what needs to be insured (e.g. equipment / inventory / property / vehicles / employees / liability or business interruption) and decide upon a realistic amount that it is worth. It is then possible to decide what you wish to insure each item against (e.g. fire / theft / accident / everything). Make sure you get multiple quotes and choose the best one.

Things to remember:

  • Identify Risk – If you are unsure about this, a good place to start is reading through your business plan
  • Measure Risk – There is computer software that can calculate risk well, in addition to specialised risk consultants
  • Decide how to Limit Risk – Brainstorm some solutions to the risk issues which are identified
  • Implement Solutions – Put the solutions in place e.g. install a fire alarm
  • Monitor Risk – Review the situation at regular intervals
written by Stefan Topfer of The Small Business Blog 

Recently Published

Key Takeaway: Jean-Michel Basquiat’s work highlights racial inequalities and the lack of representation of racialized people in the media, but also the violence suffered by African Americans. Jean-Michel Basquiat denounced the violence of cartoons, which he saw as a reflection of 20th-century American society. Jean-Michel Basquiat’s painting “Toxic” is an attempt to denounce a stereotypical […]

Top Picks

Good feedback, whether you are on the receiving or giving end, requires an attitude of curiosity and openness. Intentionally creating space for feedbackcan help, but even with the right space, receiving feedback can be really scary. Many organizations have formal systems of feedback in the style of mid-year and annual reviews. And it’s not uncommon for informal continuous […]

Trending

I highly recommend reading the McKinsey Global Institute’s new report, “Reskilling China: Transforming The World’s Largest Workforce Into Lifelong Learners”, which focuses on the country’s biggest employment challenge, re-training its workforce and the adoption of practices such as lifelong learning to address the growing digital transformation of its productive fabric. How to transform the country […]

Join our Newsletter

Get our monthly recap with the latest news, articles and resources.

Login

Welcome to Empirics

We are glad you have decided to join our mission of gathering the collective knowledge of Asia!
Join Empirics