Is it possible for a business to be risk-free? In reality, this is not really feasible. All businesses encounter risks, no matter how hard you may try to avoid risk or mitigate risk. Having said that, business owners and staff can put into play certain tactics to minimise risk and vastly reduce the possibility of problems occurring that lead to accidents, business downtime or a loss of profits.
Let’s look at some ideas in this article so you can start to make your business and workplace environment as risk-free as you can possibly make it.
Start By Having a Risk Management Plan
If the goal is to get serious about reducing risks in your business, then you really need to start off with a plan. Everything works better with a plan, as it serves as a guide and a reminder. Even if you just start out by jotting things down in a notebook and expand your plan from there.
Most businesses have a business plan, which may or may not include a section dedicated to risk management, but it’s better if you create a separate risk management plan that’s entirely focused on risk management and compliance management.
Your risk management plan should involve noting down every possible risk or hazard you and your employees can think of. Likely you’ll add to this list over time. After that, prioritise the risks based on their likelihood of eventuating and the impact the risk would have on your business.
Your risk management and compliance management plan should also include ideas on how you will tighten up areas of risk, and what you would do in the event that a problem did occur.
Get Everyone Involved In Risk/Compliance Management
To truly make your operation as low-risk as possible, everyone involved in the business needs to take on the responsibility of managing risk. It’s not just the realm of the owner or the manager, but every single staff member.
Your employees are your eyes and ears on the ground. Everyone has different roles to play and works in a different section of the business, so your employees are the people who are in the best position to alert management and owners to potential problem areas and hazards.
A good way to brainstorm risk management ideas and solutions is to hold regular meetings that all members of staff attend. This way, everyone has a chance to voice any concerns or thoughts they may have and things can be nutted out in a group environment.
During these meetings, conversations about industry compliance can also be discussed, so everyone is aware of the rules and regulations the business must adhere to.
Implement Staff Training
Keeping all staff up to date with the latest training is also important when it comes to managing risks. Training might include things like operating machinery, defensive driving courses for delivery drivers, forklift driver training, avoiding online scams for those in the IT department and so on.
Those regular staff meetings make for a good opportunity to bring everyone up to speed on compliance, or any changes that might have occurred in the industry.
Keeping everyone well-trained and up to date on skills and knowledge is one of the most effective methods of reducing risks.
Hire a Risk/Compliance Manager
If your operation is a decent size and you have the budget to hire a dedicated risk manager and compliance manager, this can be a really positive move. All tasks related to risk and compliance management can be handled by the risk manager, who will work in conjunction with everybody to ensure business risks are kept to a minimum.
To assist your risk manager in their role, purchasing risk and compliance management software can really be a massive help. This type of high-tech software is designed to make risk management and compliance management a breeze, saving time, headaches, while always helping you monitor your business, along with printing out reports and business analysis when required.
A risk manager coupled with dedicated software is an investment in your business’s future and longevity.
No business is ever going to be free from risks, no matter what you do or how much risk management you apply. However, by focusing on risk management and identifying and avoiding problems as much as possible, you can do a lot to ensure your business is as risk-free as possible.