All businesses face some kind of business risk which can be grouped into five categories: financial, operational, compliance, strategic and reputation.
Financial risks can be measured in monetary terms. For example, your company may loan someone a large amount of cash and that loan is in risk of default. Business debt is a serious problem, one that we covered a couple weeks ago this post titled ‘A rise in process serving and debt collections’.
The most effective way to reduce your financial risks is to build up cash reserves and keep a tight rein on cash flow. A good rule of thumb is to have at least 3 to 6 months of working capital to help you through tight spells.
Growing business concerns
As a business intelligence agency working with various organisations on due diligence, IT forensics and fraud cases, we believe operational and compliance risks challenge many small and large businesses are serious and continue to grow.
Operational risks cover everything from fake CVs, employee theft, cyber security, to machinery failure. Compliance risks deal with bribery and corrupt financial practices, health and safety, and IT compliance if you’re handling sensitive data such as credit card information from your customers. At Blackhawk Intelligence, our teams of specialists help organisations to formulate plans, conduct trainings, and perform periodic risk assessments, all with the objective to reduce the associated risks.
Helping companies to mitigate strategic risks, particularly in overseas operations, is also part of what we do. We excel in conducting localised market intelligence, identifying specific aspects or characteristics of your market, operational environment and your competitors, that may pose threats (or opportunities) to further your business goals.
No magic bullet
We wish we could title this article: 10 easy steps to mitigate your business risks, but that would be misleading, as all risks are unique and each circumstance is different.
We can, however, broadly categorise what we can do to help you as follows:
Assessment: the specialist teams at Blackhawk Intelligence work with you to assess the situation and create preventative measures for you.
Education: we provide training and share know-how with you.
Monitor: we help you implement effective checks and balances.
Response: we draw up response plans so you are always prepared.
Give Blackhawk Intelligence a call today on 020 7788 8983 today and talk to us about risk management.