Risky Business: Risk Management verses Risk Assessment

Are you risk averse or a risk taker? How do you feel when faced with taking a risky decision? Are you worried it will all go horribly wrong? Or do you charge forward?

A managed risk is not going to break your business. It is easy to be in denial or hope a potential problem will/won’t happen. The first step is to plan for the mitigation of a risk and make sure that if it does occur it will not have much impact.

So, what are the risks in your business, how do you find them, and more importantly, how do you stop them causing problems?

Identifying risks against the success of your business are best tackled as soon as possible. There are formal risk management methods and tools… or just keep it simple.

The main factors to consider are:
• What does the probability x impact equal?
• The probability is the chance of the risk happening
• The impact is what would happen if the risk occurred

Simply put, a risk with a high probability of happening and a crucial impact will need to be dealt with before proceeding with the task if it falls into something the business owner is not prepared to take a chance on.

For example: You may decide not to do a fire risk assessment on your business. If you were subsequently inspected and found not to be compliant, that could be a big cost. Whereas, it might only take a quick call to arrange to be checked and not cost as much as you think.

Until you know the facts it is not easy to make an informed choice.

I have had my article published in an international paper… To see Alex’s perceptions of Risk Analysis and Management, plus some examples of how to manage risks, see page 10 of TickIT International Q3,1999 Publication

What is your experience of Risk Management? Do tell us by dropping us a comment below

If you want to find out more about managing risks to your business, contact me on 07766 080770 or email alex@alexpetty.biz

About alexpettybiz

We educate and inspire business owners to realise the potential in themselves and their business. The way we do it is to help make businesses easier to run, more profitable and more fun. We believe in coaching at every opportunity to help business owners succeed. What can we do for you?
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