This is the penultimate week of my Christmas Countdown and I want you to consider the topic of risk.
It is easy to spend time worrying about what might happen especially when we have no control over whether something happens or not. Therefore I believe it is best to take action rather than worry.
So back to yellow stickies!
1. Jot down anything that you consider to be a risk to your business. It could be a key piece of equipment breaking down, high staff turnover or even bad weather.
2. For each of these risks consider whether the impact on your business is high(red), medium(orange) or low(green) and what the probability is of the risk materialising–again high, medium or low.
3. Now pick out the ones that have one medium and one high or two highs. These represent the biggest risks to your business.
4. For each of these consider whether you have control, the ability to influence or can only react.
5. Spend most of your time on identifying what you can do to reduce the probability and impact of those risks in the control and influence categories.
6. For those that you can only react to see if you can identify anything that would reduce the impact.
You should now have a list of actions that will help you reduce the risks to your business–well done!
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