Establishing a business requires taking many risks and mitigating a couple of variables. The way you deal with your brand risk management provides your potential investor with a clear insight into your capabilities and leadership qualities says William D King.
Varying from the risk of products, markets, finance, and execution, these combine to impact your credibility.
Altogether, avoiding risks can negatively impact your growth as you will always be stuck in the same loop.
Here are 5 ways by William D King to manage risk in a business:
1.Set Priorities
Create brand risk management by prioritizing all the potential threats and risks. Categorize them into 4 groups
a. Highly likely to occur
b. Good chance of occurring
c. Slight chance of occurring
d. Highly unlikely to occur
Make plans for prevention and mitigation in case of occurrence concerning the priorities.
Note: If the risk is in group D but presents more significant financial damage, it should be prioritized.
2. Monitor High Risk Customers
New businesses need to make it a rule that customers with a bad credit history should pay on the spot. This will help in avoiding complications that may take place later on. Have a system that identifies credit risks in advance to stay ahead of the game and stay secure.
3. Manage Financial Risks
It would be best to have investors and lenders as your backup plan for a newly launched business, in case everything goes south. A concrete business plan that includes all the forecasts and financial plans for at least the next three to five years is necessary to gain the trust of potential investors says William D King.
4. Make Sure That You Have Insurance
Conduct a survey of liabilities and legal rules and regulations to opt for the most suitable insurance for your business. Some of the regular insurance that businesses purchase are:
- Disability Insurance
- Professional Insurance
- Life Insurance
- Medical Insurance
Purchasing insurance gives you the chance to transfer a more significant risk to insurance companies at a smaller price. Make sure that you have insurance.
5. Craft a Risk Management Team
If you are unwilling to spend a massive amount on hiring an organization for risk management, you can get your current employees to form a team to deal with risk management. Make sure that the leader is someone with previous experience and skills in this domain so they can overlook the entire team efficiently.
If not, pay for an organization to handle your brand risk management- trust us, it is a crucial investment.
Wrapping Up
William D King have highlighted the 5 ways to manage risk. Learn from them and apply them in your business. This will cater to many problems and keep you safe from them.
