Manage the Risk
I don’t need to mention the current climate. We couldn’t avoid the talk or news stories about the GFC and the global impact of that recession. Current times are also challenging for many. Whether you run your own business, manage a large or small team, or head up a company, challenging times necessitate careful movement.
Plan well, watch the cash flow, manage the risks.
Avoid the temptation to batten down the hatches and become insular and inward focused. Balance your cost reduction measures and performance enhancement activities with inspiring and innovative initiatives.
Watch your cash flow closely. Plan carefully and spend time each week working on that plan with your senior team. And above all, manage the risks.
Good risk management includes:
- clear articulation of the risks that face your business and your plan
- an assessment of
- the probability that the risk will occur
- the triggers that may cause the risk to manifest
- the likely impact(s) of each risk
- identification of actions to take now and in the future to minimise the likelihood of the risks occurring
- mitigation strategies for each risk to be invoked should the risk manifest.
Use your risk plan
Use your risk plan to communicate to your senior team, as a basis for discussions, to monitor actions and to assess the current status of risks.
Balance your focus on risks
Remember that managing risks is a balance between an appropriate analytical approach to risk and moving forward with initiatives. Occasionally risk management causes stupefaction to the point of inaction. Once your risk plan is in place, be confident that you have a framework for action in place. Move ahead with your internal cost control measures and performance improvement program, as well as your outward focused and exciting new initiatives, monitoring the risks in each review meeting.