Protect a growing business from risks that can shut down your entire operation
Scaling a business is what every business owner wants. But the bigger your business grows, the more risk you open yourself up to.
The problem is…
Growing businesses rarely have risk management strategies in place. And between managing growth and keeping day-to-day operations going, leaders often ignore risk until it’s too late.
The good news? Every growing business can avoid catastrophic events if they have the right risk management strategies in place.
Here’s what we’ll cover:
- Why risk management is critical to growing businesses
- The top threats businesses face today
- 5 risk management strategies that will protect your business
Let’s dive in!
Risk Management Strategies Every Growing Business Needs
Why Every Growing Business Needs Risk Management Strategies
Risk management isn’t reserved for large corporations with budgets in the millions.
Growing businesses have plenty to lose if they don’t put proper risk mitigation strategies in place. The faster your business scales, the more risk it opens itself up to—from financial risks to operational risks and legal risks. When you grow too quickly without thinking about risk, there will be consequences.
The number one reason companies fail within the first 5 years is poor planning and financing. Weak leadership teams and poor risk management processes make the list too.
When you’re in “growth mode”, it can be tempting to cut corners where you think you can. Unfortunately, that usually comes at the expense of your risk management plans.
The earlier you tackle risk, the more your business can focus on sustainable growth. When you have the right risk management strategies in place, you set your growing business up for success. You also build trust with your clients and keep operations running smoothly if something does go wrong.
Protecting your growing business should start with affordable remote underwriting talent. Bring experienced remote Underwriters on board early to evaluate your risk profile from day one. Underwriters can help you identify, assess, and prioritize risks so you can stop them from happening in the first place. This lets you focus on growing while leaving the risk to experts who do this stuff every day.
It’s like getting insurance for your growing business.
Growing Business? Here Are the Biggest Risks You Should Be Concerned With
Growing businesses should be concerned with…well, everything.
But the risk landscape has changed within the past few years. It’s not just about company cash flow and competitor threats.
Cyber attacks, talent shortages, inflation, and climate change are real risks businesses face today. There are always going to be risks that fall into industries specifically, but these are the large-scale risks we’re seeing across all industries.
Forrester research shows that 41% of organisations experienced “three or more critical risk events” in the last year. Four out of 10 businesses experienced a major risk event.
Cyber attacks, economic instability, and talented labor shortages are also some of the biggest concerns small business owners have today. 26% of small business owners are worried about talent more than any other thing. That’s up from just 9% who were concerned about talent retention this time last year.
That’s why we put together a list of the biggest threats your growing business should be aware of.
Take note of these risks:
- Cyber Threats: Cyber attacks are happening more frequently and are becoming more sophisticated each year. Growing businesses are at risk because they typically have access to valuable information but don’t have the security measures that larger companies do.
- Talent shortages: We live in a candidates market. It’s more difficult than ever to find and retain top talent. If you don’t have the right people in your corner, everything starts to fall apart.
- Economic uncertainty: Inflation comes with higher costs for businesses trying to grow. And we all know how erratic this economy has been.
- Third-party risk: Growing businesses take more risks with third-party vendors and suppliers. If that third party falls through, it can put your entire operation at risk.
- Regulatory compliance: As laws change and regulations get updated, some businesses struggle to keep up. Falling out of compliance can result in hefty fines.
Any of these risks can bring a growing business to its knees. Make sure you have strategies for managing each of them.
5 Risk Management Strategies Growing Businesses Can’t Ignore
Implementing a risk management strategy can help your business prevent threats before they happen. Here are five risk management strategies every growing business needs to know.
Build your Risk Assessment Framework
Every risk management plan starts with a risk assessment. That means knowing every possible risk your business could face and ranking them by how likely they are to happen.
Build a risk register to document each risk, who’s responsible for it, and what action needs to take place. Review your risk register weekly, monthly, and quarterly. Your business will grow and change so will your risks.
Establishing a risk assessment framework is step one to managing your risk.
Invest In Cybersecurity Measures
I mentioned cyber threats above, but cybersecurity needs its own bullet point.
Cyber attacks aren’t going away anytime soon. And growing businesses are often targeted because hackers know you probably don’t have the IT department of a larger corporation.
Make sure you have these cybersecurity measures in place:
- Enforce strong password protocols and use multi-factor authentication (MFA) wherever possible.
- Keep all software up to date. Patches need to be installed when your IT team sees them.
- Train employees on how to spot phishing and other social engineering attacks.
- Have an incident response plan that’s been tested.
The cost of preventing a cyber attack is nothing compared to the loss your business will endure if one happens. Don’t wait until it’s too late to take cybersecurity seriously.
Strengthen your Hiring Practices
Talent is always going to be a risk for growing businesses. If you can’t find or keep the right people, your growth will suffer.
One of the best ways to improve your hiring strategy is to go remote-first. Opening your search to remote talent allows you to find skilled professionals that may not be available in your local area. Not to mention skilled remote candidates who aren’t looking to relocate.
Roles like underwriting and risk assessment require specialized knowledge. But by hiring remote risk underwriters, you can get that skillset without overspending on your budget.
Pay competitive rates and offer flexibility. Boom. You’ve hired quality remote talent that would’ve otherwise been hired by your competitors.
Have a Business Continuity Plan
The very nature of risk management is planning for worst-case scenarios. That’s why every growing business needs a solid business continuity plan.
A business continuity plan outlines what happens when something goes wrong. Here are a few things to include in your plan:
- How will you communicate with your team? And who needs to be informed?
- Are all of your critical systems and data backed up?
- Who covers for each team member if they become unavailable?
- How long will it take for your business to recover?
If something happens and you don’t have a plan, you’re putting your business at risk. Don’t become a statistic. Plan for the worst.
Monitor and Review
This whole list isn’t just a one-time thing. Risk management should be ingrained in your business’s culture.
Monitor your risk register. Keep an eye out for new risks that could affect your business. Talk to team members at every level about the risks they see.
Congratulations! You just implemented a culture of prevention.
Key Takeaways: Risk Management for Growing Businesses
It’s rare that any business owner gets excited about risk management. But that doesn’t mean it isn’t vital to your business’s success.
If you don’t have risk management strategies in place to protect your growing business, then you’re asking for trouble. Remember:
- Build a risk assessment framework and update it regularly
- Invest in cybersecurity measures now
- Strengthen your business by hiring quality remote talent
- Plan for worst-case scenarios with a business continuity plan
- Monitor new risks and adapt regularly
Growing businesses that take risks seriously are the ones that win in the long run.
Don’t wait for something to go wrong before you start protecting your business.
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