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Are your business risk assessments up to standard?

With such a wide range of potential threats and disruptions in the modern business landscape, risk assessment can be key to any organisation's plans to stay afloat and expand.

Research has suggested that many firms are falling short when it comes to monitoring and managing risk, so what could you be doing to ensure your enterprise is properly protected?

Failure to control risk 'costing businesses billions'

Businesses across the UK are suffering major financial repercussions because of their failure to adequately control various risks, a recent survey revealed.

KPMG Enterprise conducted a study involving around 220 businesses with turnovers in the range of £10 million to £500 million.

Respondents were asked about how they deal with potential threats relating to their workforce, customer base, supply chain, data security, regulation and tax compliance.

The survey found that mid-market companies lost approximately £48 billion last year because of inadequate management of risks that were within their control.

Approximately £16 billion of these losses occurred in London alone, City AM reported.

Ben McDonald, a KPMG Enterprise partner in the capital, said: "Whether related to customers, suppliers, data security or regulation, never has the adage 'fail to prepare, prepare to fail' rung more true - and the financial impact that this lack of preparation is having on business is startling."

Half of the respondents said the possibility of losing major client accounts was their most pressing day-to-day concern, with around three in ten (29 per cent) admitting they relied on their top five customers for more than half of their turnover.

With customer retention so high on the list of business priorities, it's essential for firms to ensure they are in the strongest possible position to serve their clients by getting the basics right.

Evaluating workplace security risks is a fundamental step, given the importance of having a stable and productive workforce to deliver for your clients.

Conducting workplace security risk assessments

When assessing security standards within your business, one of the first tasks should be to conduct a safety audit of your premises.

This should examine issues such as how easily an intruder could gain access to the site, levels of visibility around your buildings when it's dark and whether people working in certain areas of your workplace are more vulnerable than others.

Another important element of workplace security risk assessments is vetting all individuals who are permitted entry to your premises, from full-time employees to contractors or suppliers who have occasional access.

An informed, engaged workforce can be a powerful tool when it comes to protecting your organisation against security threats.

Conduct regular staff consultations and training to ensure that your employees know their responsibilities when it comes to maintaining security and know how to respond in a potentially dangerous situation.

It's also worth giving some thought to your current security arrangements and whether they are suitable for your needs.

Consulting with a professional security provider can be extremely useful for improving your understanding of any potential risks facing your business.

 

Posted by Julie Tucker

Image courtesy of iStock/Kenishirotie

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