Being aware of what risks your business could face allows you to plan to mitigate them.
A risk assessment plan is a “what if…” exercise. You need to:
- Identify what could happen to or in your business.
- What would the impact be if it did?
- How likely is it to happen?
- Can it be reduced or eliminated?
- Do you need to get insurance in case it happens?
We undertook a disaster recovery plan a couple of years ago. The whole team sat down and discussed what we would do if a disaster happened, what we expected of each other, how we would communicate, and whose job is it to get us up and running again and in what time frame. It was an interesting exercise and sort of funny. And when we had the quakes in Wellington a bit later we were all prepared; we were almost disappointed that we only had a filing cabinet fall over.
Most risks are not that dramatic. It’s far more likely that a business interruption actually comes as someone burning their lunch and setting off the sprinklers and destroying the computer system.
Any good insurance advisor will be able to walk you through a risk assessment plan for both material damage and business interruption.
We know a few good people so let us know if you’d like to be pointed in their direction.
The more subtle risks I mentioned in my last blog require building a strong sustainable business to mitigate.
Doing a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis helps. As does having a plan, establishing policies and procedures, keeping up to date with your market and keeping your team healthy and engaged.
If you’d like help with undertaking this planning give us a call.