Reducing Risk in Your Small Business Operations
Running a successful business means being able to manage risk. Risk might come in many forms. There are disasters that occur very rarely, and there are mere inconveniences that occur often. When putting in place measures to counter the risks you face, you’ll need to ensure those measures are commensurate with both the likelihood and severity of the risk being addressed.
So, how might you approach risk, in general?
Identify Common Risks Facing Small Businesses
Your first step should be to work out where the common risks lie. For most small businesses, this means conducting regular risk assessments to try to proactively determine where the challenges might lie.
In the case of common risks, your own experience and history might be a good guide. If you’ve faced multiple cyber attacks in the past year, then it might indicate that there are more such attacks incoming in the year to come. Other common risks include liquidity problems, operational disruption, and issues with regulatory compliance and tax.
Operational Risks: Managing Equipment and Vehicle Breakdown
If you’re using machinery or other equipment, then breakdown could severely impact your operations. In some cases, it might bring an entire production line to a halt.
By far the most common kind of machine used in business is the road vehicle. Cars, lorries and vans all require maintenance. Downtime can limit your ability to operate.
The best way to minimise downtime is with the help of preventative maintenance. You can limit your uncertainty with the help of vehicle repair insurance, which will effectively replace sporadic repair costs with fixed payments. This can be especially valuable for smaller fleets, which might find it more difficult to absorb large repair bills.
Cybersecurity: Protecting Your Digital Assets
Almost every business in the UK now has a digital component. In some cases, this digital component is central to the appeal of the business. Smaller businesses are often targeted by cybercriminals, and among the most common avenues for attack are phishing and other forms of human error. Make sure that your staff are adequately trained, that they understand the use of strong passwords, and that they understand which messages to be suspicious of.
Ensuring Legal and Regulatory Compliance
For your business to prosper, you’ll need to ensure that you remain on the right side of the law. These laws are regularly changing. You might consider the government’s Employment Rights Bill, which is set to offer many new rights to workers – and impose many new responsibilities on employers.
It’s vital that you remain informed of changes, and that your contracts and general practices reflect the regulatory environment as it currently is.
Employee Training and Health & Safety Standards
Finally, it’s worth discussing the risk of workplace accidents. As an employer, you owe a duty of care to your workers. This means keeping them safe, with the help of ongoing safety training, protocols, and a culture of vigilance when it comes to physical risks.
Image source: Freepik
