The perks of running your own company are obvious: any profits you make are yours to spend or re-invest as you see fit, and you can shape its future in line with your grand vision, without any interference from external parties.
With such clear benefits, perhaps it’s little wonder that 381,000 new businesses started up in the UK in 2018.
However, there are a number of considerations for entrepreneurs – whether budding or firmly established – to take into account when it comes to being in charge of an organisation. One of those is risk, which can manifest itself in many different forms. Enlisting the services of a risk advisory firm can help to safeguard against these problems, but first it’s important to be aware of what they are.
Financial
This can encompass all manner of scenarios, such as fluctuations in the market, unexpected bills or a fallow period resulting in a lack of cash flow. There are options to combat these issues, and studies show that awareness of alternatives to traditional finance such as loans continues to grow.
Legal
It’s imperative that your business remains wholly compliant with the various laws and legislations that have been set up to enforce fair practices across all industries. Failure to adhere to these regulations could result in financial penalties as well as potential reputational damage, both of which may be difficult to recover from.
Physical
This incorporates the risk to the material assets of your company, such as premises and equipment, which may be stolen, vandalised or become damaged by fire or flooding. As such, it’s critical that you’re adequately protected in the shape of a robust insurance policy that will cover the costs of repairs or replacements and save you from taking a significant financial hit.
Human
The people in your employment can also pose a risk if, for example, they were to behave in an inappropriate way. These actions are not necessarily restricted to within the workplace, either, so you need to ensure all employee contracts are watertight and clear regarding the repercussions in the event of any misconduct.
Technological
This type of risk can include software malfunctions, system outages as well as viruses and cyber-attacks. With so many businesses reliant on their technological assets in the modern era, it’s vital that you have protective measures in place such as back-up power sources and comprehensive anti-virus programmes to ensure your company can safeguard against these risks and continue to operate in a profitable manner.
