How to Manage Risks in Your Business
“There is freedom waiting for you, on the breezes of the sky. “ And you ask 'What if I fall?' “Oh but my darling, what if you fly?" - by Erin Hanson
Life is inherently risky, and starting a business venture can take you on an adventurous journey full of ups and downs- similar to being on a roller coaster. In the face of crisis, such as the current COVID-19 pandemic, small businesses have the potential advantages of being more agile, less bureaucratic, with closer knit teams. Compared to their larger counterparts, SMEs should leverage these advantages to be responsive and transform their organizational structure to better adapt to crisis. Nevertheless, it all depends on how your business has prepared to manage risks. Therefore, we have picked a few articles to help you jump start your businesses crisis management strategy.
Undeniably, risk is an occupational hazard in running a business. For small businesses particularly, it is critical to know what type of risks you will face. So, what are the top 10 risks that you may face? Managing cash flows, structural damages, cyber security threats, are just a few. Identifying risks is the first step towards navigating a current/future crisis. Check out and see if you share the same stress points as those mentioned in the article. This can help you prepare.
You probably can't escape threats, but you can definitely manage the consequences of risks with prep work. To begin with, there are some important questions that small business owners should ask themselves. How can you identify internal and external risks? What are the ways to measure risk? How can you create a risk management plan? These are just a few questions that you may find guidance for in Small Business Risk Management.
Managing a small business in times of crisis could force you to make choices between bad scenarios and worst case scenarios. Young entrepreneurs can learn a great deal from business owners who have experienced high stress operational incidents, or survived previous crises. The Chicken & Rice Guys are just one example of small business owners who are sharing their story so that others can learn from it. They run a number of food trucks and restaurants in Boston, and their businesses have been affected by the global pandemic like so many of yours. Nevertheless, they learned a great deal about handling crisis from an operational incident that happened in 2017. Check out the article as they share their experience and tips for managing finance, communications and stress in crisis.
Speaking of stress, it is equally important to take care of yourself and manage your own potential 'mental' risks. One of our guests of honour for the upcoming webinar series on Coping with COVID-19, Ms. Hamidah Thanawala, apart from her expertise in finance, is also the host of Global Podcast Sharing Life Lessons . Through interviewing different people on various topics like relationships, health, success, and spirituality, she sheds light on critical life lessons, learned by those who have experienced emotional, business and health trauma themselves..
Do you have a specific question for Hamidah about risk and financial management? Interested to hear her key learnings from the financial crisis in 2008 and how she is handling the current pandemic as an entrepreneur? Then be sure to tune in to Episode 1 of the webinar series: Focusing on the essentials in risk management, on 21 April. Click here to register.
If you haven't thought about how you will manage risk and deal with crisis, now is the time! You may not have time to prepare for the current crisis, but certainly you can put in place a plan and strategy to prepare for the next one. Before heading to our upcoming webinar on 21 April, why not have a quick preview and recap on the essential concept of risk management? Watch the 2 minutes video:
More info about the webinars to help you cope COVID19, click here
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