It's a Risky Business

25th August 2015

The rather unexpected slump in the Chinese economy and the size of it might seem irrelevant to many smaller businesses in the UK, but that’s not necessarily the case. It has already impacted many commodity prices including oil; caused massive corrections in the world’s stock markets affecting investments; and could if it continues cause a worldwide slow down just as we all thought we were coming out of recessionary times.
All these factors lead us at Insight Associates to think about the impact of outside influences and how quickly factors outside of our direct control can change the environment in which our businesses operate.

When everything is running smoothly and business is booming nobody wants to be the negative Nelly/Nigel that asks the awkward ‘What If?’ question and we don’t want you to do that either.

Know Your Risks

It is however important to fully understand all the key risks in your business and find ways to monitor and review them. Consider the consequences of those risks, the worst possible outcomes, and how the business could cope.
Large corporates have risk registers but even creating a simple register or list is better than nothing.
Consider potential knock on effects of risks/events outside of your direct control and influence including International factors; government policy changes and funding cuts.

Without even trying here’s several recent news events that would have impacted some businesses
  • Airline bans on wildlife hunting trophy cargo
  • French ferry workers strike
  • The Civil Aviation Authority vintage aircraft aerobatic restrictions.
You might not change the nature of the risk but preparation and planning is likely to result in a reduced impact on your business.

And remember… if you’re concerned about financial risks in your business then get in touch.

Some of the basics are addressed in our Easy Exercises for Financial Fitness eBook

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