Question

To what exent is risk present in business?

Answer 1

global events, such as pandemics and interruptions to air traffictechnology, such as computer network failures and problems associated with using outdated equipmentregulatory and government policy changes, such as water restrictions, quarantine restrictions, carbon emission restrictions and taxenvironmental, such as climate change, chemical spills and pollutionwork health and safety, such as accidents caused by materials, equipment, or location of your workproperty and equipment, such as damage from natural disasters, burst water pipes, robbery and vandalismsecurity, such as theft, fraud, loss of intellectual property, terrorism, extortion and online security and fraudeconomic and financial, such as global financial events, interest rate increases, cash flow shortages, customers not paying, rapid growth and rising costsstaffing, such as industrial relationsissues, human error, conflict managementand difficulty filling vacanciessuppliers, such as issues within their business or industry resulting in failure or interruptions to the supply chain of products or raw materialsmarket, such as changes in consumer preference and increased competitionutilities and services, such as failures or interruptions to the delivery of your power, water, transport and telecommunications.

You should use this list as a starting point for thinking broadly about the types of risks that could impact your business. You may discover that you need to consider other important areas of risk that are not listed here.

Indirect risks to your business

People often make the mistake of overlooking things that don't directly impact their business and are therefore unprepared to deal with change. For example, while your business might not be directly affected by a natural disaster, you may still suffer if it affects your suppliers, customers or general location.

Consider how these scenarios could affect your business:

If your suppliers are affected, you may run out of the products you sell, or the materials you need to make products.If your customers are personally affected, their priorities may change and you could experience a reduced demand for your products or services.If your general location is affected, you and your customers may not be able to access your premises, or your utilities could be affected. For example, you could lose power, which could mean you:will not be able to operate your businessmay need to throw out any perishable goods and replace them, which can be costly.

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