Why small businesses can’t ignore risk

I know most small businesses feel that risk management is more for big businesses than them, but any business that would like to grow needs to be managing its risks. Even if you don’t necessarily want to be seven-figure business owners I expect you still crave more stability and consistency in your daily routines.

As a responsible business owner, you know your industry and recognise innovations in the market that might help you improve your products and services but often you are too busy managing the day to day operations.

I wouldn’t dare to say that risk management is the silver bullet or the panacea for all of the problems in your business, but I do believe it helps create certainty for its longer-term security.

What is risk management?

Risk management is a method of looking at the future to identify problems before they happen to reduce the impact should it become an issue. It is about helping your business set strong foundations so that when you are ready, you have a solid base to build from, rather than finding yourself overwhelmed by all the issues that come with trying to grow.

It’s also about identifying opportunities to reduce friction throughout the business, making it easier for your customers to buy from you and for you to get paid. Technology has increased the rate of change and while you are scanning your environment for risks, you may also find new ways of delivering your product or more effective methods of automating your…