Risk Management - Eliminate Your Biggest Business Risk With Process

Many risks affect your business. Every business owner is aware there's risks just like single source suppliers, key customers, even Nature which can at any time bring your business to its knees. However there is one risk that's so critical, so important to understand that it often goes undocumented and untreated. Should this kind of risk ever come to fruition it might bring your entire business down in a single day. This risk often hides in plain sight, some business even have this risk in their name. This risk is you!

Mitigating your biggest Risk.

You might believe you're a fit and healthy person, you might also have plans of working in your business for years to come, however as you're aware there are no "certainties" in life. The very essence of risk management is identification, documentation and treatment for every known business risk, precisely how can you create a treatment plan for something as critical and as important as "you"?

What would happen if?

What would happen to your business if a key employee left? Easy there would be a period of pain and you would rehire. What would happen if your sole supplier suddenly went out of business? You'd reference your risk plan and seek another supplier. What would happen if a flood took out your data server? Simple you might revert to a back up, purchase new kit and get over it.

However, could you take a holiday from your business? what would happen if you suddenly got sick? Who will replace you? Who will know what to do? Would your business continue?

Identifying what you do.

Identifying what you do in your business is a difficult task. First, there is the argument that only you can do what you do. Second, there is the time it would take to understand and document each task. Third, there is a mystic that some people simply don't want others to know what goes on in the inner core of their business. There is however, a great reward for going through this exercise.

Worth the effort.

While intellectual property and ideas should remain a company secret, the daily tasks, or the "business as usual" activities should be identified to assist in risk mitigation. It takes time and effort to look at what you do in detail and document it. This exercise, this discovery and identification process could be the most important thing you ever do, it could in fact save your business. How?

Process can set you free.

By identifying and documenting what you do, you are creating a process. With effort this process could be refined, optimised and most importantly made repeatable. But that's not the best bit! When you have a repeatable process you have an incredible new option open to you. Someone other than you can learn, and eventually do what you do. This of course means you don't have to.

Why repeatable process is key.

There are two critically important things about business process freedom and control.

Freedom.

Business processes give you the personal freedom to consider holidays without dread, focus on other projects, and perhaps start other business. Those that understand this even work out how to franchise their business, why have one business making money when you can actually have 2, or 3.

Control.

Process gives a business something incredibly powerful, control. A collection of activities when organised into a process can be measured and improved. The discipline of "process improvement" is the reason big companies got that way.

Process creates a strategy to scale, a way to improve and a way to optimise. I believe every business needs robust processes, or it's at significant and serious risk.


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You don't need consultants from top tier enterprise firms to get started with process management. As a former KPMG manager, Hewlett Packard consultant and advisor the Australian Department of Defence I can show you how to identify a single point dependency and create effective business process. Click HERE to find out how more.