Phil Khor

How should SMEs identify and treat risks associated with their business?

Business is riddled with risks. Surely we don’t just ignore them, but I assume different people deal with risks very differently. What has been your experience?

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1 Answer

Don Gregg

Don Gregg , Director at Advice 4 Growth

The best way to manage risks is to brainstorm the range of potential risks, then assess how likely each is to happen and what would be the impact on the business if the risk materialised. Finally have a look at what actions can be taken to reduce the likelihood and/or the impact and assess which are most appropriate to put in place such as procedures or insurance.

Businesses that have a solid business strategy are by definition less risky. The right strategy focuses the organisation on building sustainable profitable relationships with right clients. This is the best way to manage competitive and market risks.

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