Carrying Out a Business Risk Management Review for 2024
With the year of 2023 coming to an end, the start of 2024 is here. Just like New Year’s resolutions, the start of the new year is a better time than any to take stock of your current business performance. One thing that will come up a lot in your review will be risks, both the number of them and the level of severity they have. You may already have insurance in place to mitigate these risks, but you can go one step further by adopting a risk management strategy for your business. So what should you do when looking to implement a new risk management strategy?
Learn More About Your Business Risks
Before seeking cover for your business risks, or entering into a policy renewal, you should look to identify the risks present to your business. Running each business will come with its own risks, both in terms of the type of risk but also how severe they can be too. Across all businesses, however, are some universal risks that you need to be aware of.
Risk can fall into four main categories; namely strategic risk, compliance risk, operational risk and reputational risk. Strategic risk is about the business strategy and the decisions made when looking to grow your business, and compliance risk relates to regulations, rules and laws you have to abide by. Operational risk relates to the day-to-day running of your business, and reputation risk is potential damage to the company’s reputation as a result of a mistake.
Because of the prevalence of technology, you may find that the vast majority, or even all, of your work is being done digitally. And when you’re working with computer systems, servers and digital documentation; there are many risks that are unique to cyberspace that can be neglected by even the most experienced of users. Common cyber risks include malware, phishing, ransomware and distributed denial of service (DDoS) attacks.
Manage Your Risks
Once you’ve identified the risks to your business, you should look to manage them. The best way to do this is through a risk management strategy, where you not only identify and quantify the risks to your business, but you also come up with solutions to reduce, eliminate or mitigate risks.
There are a number of different strategies you can adopt to mitigate risk, and these will likely align with your business goals for the next year. Examples of different types of strategy include ‘business experiments’, ‘contingency planning’ and ‘isolating identified risks’.
You can even look to implement a risk maturity model, which aims to use risk management to both anticipate and mitigate potential business, as well as optimising vendor spending and improving your security.
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Protect Against Risk With [broker_name]
After you’ve identified your risks and looked to manage them with a risk management strategy, you should then look to be protected for those identified risks. There are many insurance policies that exist for a range of different business risks, running from cyber risk insurance and professional indemnity to public liability and directors & officers insurance. You may also be able to find combined cover under a ‘commercial combined’ or ‘business combined’ insurance policy.
You can also look to include a risk management strategy with your insurance policy, and you can work with [broker_name] to help shape your policy to identify and manage risks, as well as having the correct insurance in place at the right level of cover.
