Risk management is a consideration for all tradies who run a small business but is all too often put on the back burner. It’s only when something goes wrong that small business owners stop and think about arease in the business that could pose a risk.
Instead of waiting for something to go wrong, get your risk management plan in order today. To help you get started, have a look at the main risk types faced by small businesses so you know what to look for.
Common Categories to Consider for Risk Management
- Legal – Compliance with all legislations, standards, regulations, codes of conduct and any additional policies and procedures that apply to your business.
- Commercial – All risks associated with the growth of your business, the commercial viability of your service and the retention of your client base.
- Health and Safety – Any risks associated with the safety of you or anyone else in your business. Health and safety issues include your own safety, the safety of the workplace and the safety of clients.
- Environment – Risk associated with environmental factors such as storms, fire, flood or any other unforeseen circumstances out of your control.
- Reputation – The reputation of your business which is developed from your own conduct, the conduct of employees and your services and products. This can also cover how to deal with negative feedback.
- Financial – Any financial matters including budgeting, tax requirements, payroll, debt management, handling creditors and any other financial issues.
- Service Delivery – This area includes the level of customer service provided to clients, the quality of the products or services, and any necessary follow up after the job is done.
- Security – How well your business is protected and this includes security systems, internal security procedures, and privacy for clients. It also covers how well the business assets are protected.
- Technology and Equipment – Risks involved with the equipment and technology used for the operation of your business, including safety, maintenance, implementation and upgrades.
- Operational and Strategic – Covers the resources used for the operational and strategic aspects of the business to ensure successful development and growth of the business.
Where to Next?
The different areas of risk identified above aren’t meant to scare you but are useful to consider when looking at risk management. After all, it can be hard to remember all the considerations that come with a small business. Once you’ve identified your risks, you’re in a better position to put a plan into place to reduce the likelihood of these risks every occuring.
One of the most effective ways to reduce risk for your small business is to have a proper insurance package in place which suits your business needs and covers you if things don’t go to plan. A great example of this is Public Liability Insurance which covers you financially for damage to property or another person that has occurred as a result of the actions of your business.
To discuss an insurance package for your small business, contact us on 1300 826 850 or fill in our easy online form for a quick quote.