A constant challenge for any small business owner is balancing risk against reward. Some businesses will be more willing to take the plunge, but often don’t recognise potential pitfalls. Alternatively, those who are overly cautious may not maximise their business potential. The question is, how can business risk management help you achieve a perfect balance.
Having a solid awareness of the financial dangers that could affect your business can n help you decide your direction.
Assistant Head of Risk Underwriting at Allianz Trade, Paul Anderson explains: “Failing to plan for a shock is common among businesses that have previously seen success. Just because you have done okay in the past doesn’t guarantee it will continue to be so in future. For example, the bigger you get, the more you will appear on competitors’ radar, which is a risk in itself.”
irect and Bank Distribution Underwriting Manager, Victoria Keeling adds: “Everything comes back to knowing the market, knowing your obstacles and risks, then trying to prevent them.”
These steps can help you avoid some of the common pitfalls: