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Can managing risks help your business to grow?

Risks can occur in every area of business and falling foul of them can stop your business from growing, good news is most of them are preventable. Read our top tips for managing some of the most common risks in your business.

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Risks can occur in every area of business and falling foul of them can stop your business from growing, good news is most of them are preventable. According to recent research, 27% of UK businesses have experienced substantial negative impact on growth from preventable risks due to failure to plan. Read our top tips for managing some of the most common risks in your business. Whilst most companies start planning for risks after something has gone wrong, there's no reason why you can't learn from the mistakes of others before your business is put at risk. Here are some key areas where businesses need to manage risks: Litigation The impact of failing to comply with health and safety and employment law can be costly, not just in terms of tribunals and investigations but it can also take you and your staff away from the business. Make sure you stay up to date with legislation and that you're complying. Find out how the Forum can help you by calling us on 0845 130 1722. Credit risks One of the biggest risks for businesses is late or non-payment of invoices and customer insolvency. What would you do if one of your biggest clients went bust? How would you cope? You can check customers out with credit reporting and keep an eye on their performance with business monitoring. Credit insurance can also be used to protect your business. Data security While the internet offers plenty of opportunities for small businesses to grow, it also comes with some risks. Make sure your business IT is protected against viruses and tighten up your internal IT procedures so that data is backed up regularly. Lack of customer satisfaction Customers becoming dissatisfied and doing business with a competitor instead is a very real risk for small businesses. You should monitor levels of customer satisfaction with a regular customer survey and can encourage loyalty through various initiatives. Natural disasters and accidental damage Every business, regardless of size, should have a continuity and disaster recovery plan which sets out how your business will continue if the worst happens. How can planning help my business grow? The research from Allianz Insurance also indicates that businesses are undermining their own opportunities for growth by not planning for risks. By doing this you will be better equipped to keep calm and carry on in the face of adversity. It can also provide a good basis for sustainable growth through innovation of new products and taking up opportunities in new markets.

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