MANAGING BUSINESS RISKS IN THE RECOVERY
Some businesses may respond to a disaster by over-managing risk. Being in business is a risk and not all risk can be managed away. The more you try to manage away risk, the less focus you have on your business, which will eventually negatively impact your business. In short, focusing too much on reducing risk is a risk itself.
Every business is subject to possible losses from unmanaged risks. Sound risk management should reduce the chance that an event will take place and if it does take place, good risk management practices should reduce the impact.
Risk management starts by identifying possible threats, considering the likelihood of those potential risks, considering your risk appetite and implementing processes to minimise or negate them.
Sound risk management can produce the following benefits:
- lower insurance premiums
- reduce the chance that the business may be the target of legal action
- reduce losses of cash or stock
- reduce business downtime.
For more information on managing risk within your business view the risk management guide for small and medium size business.