Three Ways to Manage Risk
Updated: Feb 22
No matter how many precautions are in place, there is always risk in the workplace. Some forms of risk are more severe than others, while some accidents or mistakes are less or more likely to happen. These constant hypotheticals cause many business owners to subconsciously calculate the risk vs reward factor at every turn.
Risk management is important to a business as it minimizes the chances of something having a catastrophic impact on your operation. From physical to digital, there are many different assets to protect.
This guide will take you through three introductory tips on how to best manage risk.
Identify Your Business's Risk
While this might seem like a given, it's immensely important to identify what you and your team view as a risk within your organization. This generally consists of events that would negatively impact your business.
One major component to review is workplace safety. Perhaps your current training is ineffective, or employee actions and behavior are not being recorded and analyzed. Consider partnering with a risk management service provider to review workplace and employee-related risk.
Processes that help keep your organization clear of dangers are key. For example, you should consider placing responsibility on appropriate team members to monitor and manage certain risks.
Train employees on what to do if a dangerous or unsafe situation does arise. This will depend on the role of the individual, so be prepared to craft a variety of plans. Meanwhile, workplace safety guidelines should be effectively communicated to all employees via trainings and handbooks.
Identifying risk isn't a one-time practice. In order to successfully avoid and mitigate risk, you'll need to think ahead. It's important to keep track of industry and worldwide trends, and keep yourself informed about what's going on within your organization. This information will give you a better idea of what's to come and can help you to anticipate and avoid risk.
Look to your team to help you plan for the future, and encourage an open dialogue when it comes to current and future risk. Your CFO, for example, might be able to identify and avoid potential financial risk if they are keeping a watchful eye on certain trends. Meanwhile, an office manager can help identify potential workplace safety issues, and a member of your IT team might be able to plan for a potential cyber security threat.
Start Your Risk Management Strategy Today
One of the biggest risks of all is not having a risk management strategy. Protect your business however you can, and look to risk management professionals if you need support.
If you have questions about risk management, or how to best protect your employees, get in touch with us today to see how we can help. As an HR outsourcing organization, SynchronyHR can provide your business with risk management resources that will protect your employees, minimize loss, and improve your organization's overall efficiency and productivity.