BUSINESS

Risky Business – Is Your Business Facing These Risks?

All businesses face risks, some great and some small. The best idea is to recognise these risks and find ways to avoid them, rather than carrying on blind and simply hoping for the best. With this in mind, let’s list some potential risks or issues that your business could currently be facing, or may encounter in the future.

Cybersecurity Risks

Whether your business relies heavily on IT or only in a small way, no doubt you depend on computers and the internet in some form to conduct your business and to keep records. Cybersecurity is vital in today’s world, as cybercrime is constantly on the rise.

If your IT system suffers an attack and a breach, your system could go down, sensitive business data could be leaked or stolen and you could even have your bank accounts hacked.

Talk to your IT specialist about safeguarding your system and have them monitor it.

While on the subject of IT and risk management, you might want to consider purchasing and installing ERM software. This software is designed specifically for business risk management and will help you stay ahead of any problems and find solutions before they become an issue. 

Non-Compliance Risks

Every business owner needs to be fully aware of the compliance laws that govern their business. If you don’t know what they are, then you and your staff will have no idea how to remain compliant and on the right side of the law.

Compliance laws are in place to protect business owners, employers, customers and the general public. It’s vital for your business to remain compliant and provide a safe work environment for everyone. Remaining compliant will also help you avoid fines or potentially having your business shut down.

Employing the Wrong People

Your employees are everything. They are your business. Without employees, your business wouldn’t be able to operate and without the right ones, your business will eventually suffer.

Employing the right people for the job is a decision that’s just as important as any other business decision you make. It’s vital that you hire the right people and this includes their attitude and work ethic as well, not just whether they have the necessary skills or experience.

If you have employees on your payroll that are regularly having a detrimental effect on your business in some way, then you’ll need to consider letting that employee (or employees) go.

Overspending

This is a common problem and one that can eventually spell the death of a business venture. One of the main reasons overspending occurs is due to a lack of having and maintaining a business budget. If you have a budget, a certain amount of business income can be allocated to business expenses and so on. A budget also helps owners, managers and accountants monitor business expenses and make adjustments where necessary.

Another reason overspending can occur is when too many members of staff have access to business funds, or the power to make purchases. If too many hands are dipping into the cookie jar, eventually no cookies will be left.

 Failure To Know Your Competitors

Having some competition in the marketplace is healthy and keeps business owners honest, but you also need to keep a watchful eye on the competition, otherwise, you could find yourself being left behind.

What you should be aiming for is gaining a competitive advantage over the competition and not the other way around. If your business is always last in line to make advances or deliver something new, eventually your bottom line is going to suffer as a result.

Lack Of Workplace Communication

Creating a culture of open communication within the workplace is vital if you want to avoid problems. Be accessible and hold regular team meetings so everyone can offer their input. Your employees are your eyes and ears on the ground. They’ll be the ones most likely to spot potential weaknesses and problems areas, so it only makes logical sense to take full advantage of your workforce when it comes to valuable feedback. 

The Takeaway

The first step in avoiding problems is to recognise the risks your business could face. Armed with this knowledge, you can then implement strategies to avoid encountering those risks altogether.

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