3 Major Risks that Can Affect your Business

Businesses in the UK fail for a whole range of reasons. Sometimes, it’s managerial incompetence that drags things down; sometimes, macroeconomic factors are to blame. It’s the responsibility of every good business leader to be aware of the potential risks to the future survival of the businesses they oversee.

There are a few categories of risk common to just about every business, large and small. Let’s take a look at three of the most serious, and think about what can be done to mitigate them.

Financial Risks

Particularly topical at the moment are financial risks. These come in many forms, some of which are difficult for even an educated layperson to understand. Recently, the Bank of England moved to stabilise financial markets by effectively lending funds to the government. This comes during a time when interest rates are rising, and the pound is weak against the dollar.

The UK economy is headed for a recession if it isn’t already in one. This means slower growth and higher prices for just about everything. It’s a good time for businesses to take stock of their options since the financial landscape might well become more treacherous still before it smooths out.

Reputational Risks

Your company needs to enjoy a good reputation if it’s going to grow. This is where the power of the internet can be a positive force – but it can also be a negative force. If one of your customers has a poor experience with your business, then they can quickly share their feelings on their social network of choice.

The best way to guard against this problem is to maintain a presence on social media and to keep up with what is being said about you. Negative reviews are always going to arrive, but it’s only when those reviews point to a broader, systemic problem that your business might begin to suffer.

It’s much easier to retain existing customers than it is to attract new ones. As such, most of your marketing overtures should be directed toward those customers who’ve demonstrated that they might become loyal. The right email campaign can be extremely powerful when it comes to keeping your name visible and your customers loyal.

Security Risks

Security threats come in many forms. Protecting your premises physically is important. This can be done with the aid of access control, security cameras, and security staff. Just as important is cybersecurity, especially if your business is handling sensitive data. If the data you’re keeping is leaked, then you might face legal penalties – a risk of another kind.

Guarding against these problems might mean bringing in an outside consultant to look at risk management, or it might mean taking out specialised insurance.