3 Areas You Need to Prioritize in Your Business’ Risk Management Plan
Risk management is important for every business and should be a high-priority item on your strategic agenda. Smart leaders get ahead by planning ahead – ensuring they have minimized potential threats to their success and by having a concrete procedure on how to respond to potential risks when they happen. Risk management is no small task, either – all companies face risks in every department of their business.
Here are three areas of your business you should be considering in your risk management plan:
1. Information Technology and Data Management
Information technology (IT) plays a crucial role in most businesses today. The corporate landscape is becoming more reliant on the use of IT systems to manage important and confidential company data. As business owners, you have legal obligations to protect highly sensitive data such as electronic transactions and the personal information of your clients and employees. It is now more crucial than ever for businesses to reduce and manage all potential threats to their IT systems and data. These threats include malware, viruses, fraud, security breaches and, password and data theft.
2. Public and Media Relations
Your company’s brand image is what sets your business apart from the competition and can play a pivotal role in your success (or failure!). Establishing a risk management plan for public and media relations gives your stakeholders confidence and ensures a safe and responsible working environment for your employees. To protect your company’s reputation it is key to build a strategy around how to manage and mitigate threats against it. Negative feedback or reviews from customers can hugely impact reputation, and if not managed properly can lead to mistrust from current and potential target markets.
There is unfortunately a long list of potential financial risks your company could face that can become very difficult to manage or prevent without the help of a Chartered Professional Accountant (CPA) and financial experts. Types of financial risks include market risk, credit risk, liquidity risk and operational/budgetary risk. Small businesses may not have as much of a need for a full-time Chief Financial Officer, however without the support and expertise of an accredited professional, it can be challenging to assess the financial risks your company may be facing.
Risk management in any one of these departments requires a lot of time and energy to implement properly. It’s a multi-step process involving risk assessment and evaluation, treatment, and monitoring. Running a successful and optimized business means being able to delegate this crucial work to experienced professionals to save time and energy to focus on growth.
At Part Time CFO Services, we recognize the value of your time and are fully equipped with the expertise necessary to ensure that your business is managing your risks efficiently. We are a team of highly skilled and experienced CPAs, and Financial and Data Analysts. We work with you to assess, analyze, evaluate, and treat risks threatening your business. Let us help you with your risk management needs so you can direct your energy to developing and growing your business. Contact Us