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Four tips for better business risk assessment

Effective risk management is essential for any business. No matter whether you are responding to an aggressive competitor or overseeing the launch of a new service, you need to understand the risks involved and the best way to manage them. Here are four tips for better ways to run risk assessments.

Make risk assessments a priority

Too many businesses don’t understand the true value of risk assessments. That’s why it’s often the case that the manager of the project is left to consider the potential risks alone before making a decision – you should not assume that one person can be responsible for analysing risk.

Risk management should be a team effort with many different individuals and opinions involved. Make sure that people in senior positions run risk assessments before the start of any project or in the event of any business-critical change in the marketplace.

Involve someone impartial

It may be a good idea to involve someone who is completely impartial during these meetings. Often there will be differences of opinion provided by individuals in different departments or with a specific focus. It can invaluable to get the opinion of someone who will not be directly affected by the decision so that they can take an unbiased stance.

Invest in risk management

Even those companies who do understand the value of risk management may not invest the right way in it. It’s too often the case that these sorts of meetings are fairly short and are dominated by the opinions of the individuals who are closest to the problem – or just those who speak loudest. It can actually be a very good idea to take on board the opinions of all the people involved. This can be where it is valuable to invest in an audience response system (ARS). These handheld clicker systems can provide the opportunity to everyone to contribute their opinion and even potentially vote on the best course of action.

Have a plan in place to respond to problems

Risk is associated with opportunity. It’s the nature of business that certain risks are unavoidable. That doesn’t mean that you need to ditch an idea or re-think a project entirely, it’s just an indicator that you need to have a strategy in place to deal with any potential problems that arise. This is why risk assessments can be so effective – they allow your business to be able to move forward without stunting growth.