Key Strategies To Help You Manage Your Business Risk — Lloyd Emerson Johnson
The pandemic caused tremendous damage for companies worldwide, especially in managing their business. This was a sign for companies to reevaluate their business strategies for the future.
Recently, I read an article published by Forbes titled “Key Strategies To Help You Manage Your Business Risk”. Focusing on risk management myself, this article greatly resonated with me. It described strategies which company leaders should consider to prevent a potential risk from becoming a crisis.
Below are six strategies which help evaluate and manage business risk —
- Risk Framework
It is important to evaluate the risk framework of an organisation. This involves asking some vital questions.
What is the risk framework of the organization? Who leads and ensures it stays timely and updated? What is the crisis management framework? What are the guidelines for people to know how to get it updated or communicated across the company? How often is it evaluated or discussed? What are the key risk indicators?
2. Company culture
To prevent a crisis from emerging, it is important to make employees aware of the company’s culture, purpose and values. This can be done in their onboarding process and be continuously communicated via training workshops.
3. Executive decision
There have been situations of CEO’s putting themselves before of the company and its people. This is a potential risk. Thus, keeping the CEO in check is also essential in preventing a crisis.
How does the company support the CEO in their work, decision and plan? What about the CEO’s strategic council or business coach? Do you have a bridge between the CEO, the executive team and the investing board?
4. Corporate Policies
Evaluating the corporate policies relating to the risks that can affect business operations is also essential. This can range from cybersecruity, media, work travel and so on.
5. Business Model
How often do you evaluate your business model? What process is put into the operation to review and think strategically? For example, consider how the geopolitical landscape or foreign exchange volatility affects your supply chain and revenue goals. How are you aligning the risks, growth road map, strategic plan and resources to your key priorities? What cadence process, like strategic planning or OKR discipline, do you use to review, debate and decide what matters most to the business? How do you go about choosing the priorities?
6. Talent
An unhappy employee can pose a risk for the organisation. Therefore, making sure the talent policies and strategies are reviewed is essential.
Many companies have a HR team to deal with risks. However, it is important to consider not only what you need at the moment but also what should be done to prevent any risks which can hinder the growth of the company.
Read the original article here.
About Lloyd: Lloyd Emerson Johnson is a results-oriented strategic advisor. With over 35 years of international, broad-based experience, Lloyd considers various disciplines in his approach to management and board governance. Through effectively evaluating all corners of a business, Lloyd Johnson has reinvented the roles of a strategic partner and stakeholder champion. He is a creative visionary who transforms businesses to be effective throughout all of their operations and finances. The pragmatic leader specializes in risk management and ensuring that businesses are prepared for uncertain circumstances.
