Business growth requires a solid foundation and a solid foundation is built on powerful risk-management. The message is simple. As a rule of thumb, when you cut your risk, you cut your losses and maximise profits.
The single most important thing an SME can do to minimise the risk of failure is to establish a risk management plan that identifies risks and nominates processes to deal with them. Failing to do so is like setting out to sea in an unseaworthy vessel – a bit of bad weather and you will be spending more time bailing than sailing, diverting sorely needed resources from the core business.
The list of business risks is extensive and can be broadly grouped under the categories of regulatory risk, market risk, credit risk and environmental risk but there are a few that are particularly prevalent among SMEs
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