1 / 12

Managing Risk

Managing Risk. Minimising Insurance Risks Legal requirements Premises Equipment Employees Theft and fraud Transport Insuring the risks Risk Management Risk Management Matrix Two Most likely Causes of Failure. Legal Requirements. Risk Assessment (Health & Safety legislation)

cpyles
Download Presentation

Managing Risk

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Managing Risk • Minimising Insurance Risks • Legal requirements • Premises • Equipment • Employees • Theft and fraud • Transport • Insuring the risks • Risk Management • Risk Management Matrix • Two Most likely Causes of Failure

  2. Legal Requirements • Risk Assessment (Health & Safety legislation) • Precautions to prevent injury (employers’ liability) • Fire regulations • Employment law • The Companies Act

  3. Premises • Main risks: fire, water damage, malicious damage, weather damage • Improve security systems and procedures • A pro-active approach to managing your premises • Improve safety practices

  4. Equipment • Identify risk areas e.g. computers • Regular checks of equipment you use to create and distribute your products

  5. Employees • If a key employee: • Has an accident • becomes ill • Dies • (also non-insurable risks such as if he/she decides to leave or is poached by a competitor)

  6. Theft and Fraud • Identify the likely favourite targets in your business • Theft by employees • Collaboration with other organisations can help prevent theft • Systems to look for symptoms of fraud • Theft of intellectual property

  7. Transport • Ensure vehicles are properly maintained • Ensure drivers know about legal driving time limits • An accident could mean legal action against you • Use secure methods to transport valuables

  8. Insuring the Risks • Comply with insurance policy conditions or lose protection • Increasing safety measures may reduce insurance premiums • Some risks are uninsurable • Think about risk management • Think about contingency plans

  9. Risk Management • Identify your business processes • Identify key elements in these processes • Identify most worrying risks • Assess likelihood AND severity • Run through common causes • Work up actions to minimise likelihood • Prepare contingency plans for when the worst happens (including insurance)

  10. Risk Management Matrix

  11. Most Likely – Poor Cash Flow • This is when money is taking too long to flow into your business • Your sales may be fine, but you are not getting paid quickly enough • This means you will need more ‘working capital’ (more cash to use in the business) • There are many techniques you can use to manage your cash flow …

  12. Most Likely – Rising Costs • Compare actual figures with forecasts • Watch your variable costs • Beware of rising overheads • Don’t hide from hard decisions: • Cut out luxuries? • Switch suppliers? • Sell more products? • Re-cost (and re-price) your products regularly

More Related