The landscape is changing and so are the key business risks for 2017. External business risk is growing at an exponential rate, especially in cyber crime. We look back at some of the greatest business risks of 2016 and predict how these might shape your strategy for 2017.
The Business Life Cycle & Business Risk
As Forbes recently mentioned business risk continues to evolve.
What concerned you say 2 or 3 years ago may look very different in 2017. The risk is not just internal but increasingly also from external……….If your business is facing new risks, what are you doing to prevent and or prepare?
What Are The Key Business Risks You Should Be Thinking About In 2017?
The Allianz Risk Barometer Top Business Risks 2016 highlights the top 10 global risks to businesses.
You might think these risks are not related to your business, but the reality is they can and will impact your business either directly or indirectly.
The Number One Business Risk For 2017
Of these Allianz report that the number one risk in the UK is Cyber @ 65%, and this is an area that is escalating.
66% of small businesses have been victims of cybercrime, with a total annual cost to the UK economy of £5.26bn.
(Source: FSB Cyber Resilience Report, June 2016).
It is not just the financial costs with cyber risk but also the downtime for your business to resolve something like the dreaded ‘ransomware’ attack. The average amount of downtime for a small business that falls victim to an information security breach is 2.2 days (Source: Department for Culture, Media & Sport – ‘Cyber Security Breaches Survey 2016,)
Other Key Business Risks For 2017
Business Interruption is a common and reoccurring risk at 38% with the emphasis on natural disasters or catastrophes diminishing vs impacts of supplier chains or technology.
In the rapidly changing world we live the technological innovations, online competition, the growth of social media or ‘just-in-time’ supply are growing risks for the majority of businesses and unless you are evolving you may lose pace.
There is also correlation for each of the risks highlighted meaning that the consequences in one area may have an impact elsewhere. For example, a Cyber related issues such as data loss may incur financial penalty or perhaps loss of reputation.
So what are the questions you should be asking in 2017 to make sure you minimise your business risk?
- What is the number 1 threat or risk to your business success? Or what are the risks that keep you awake at night?
- What or how do you currently manage or monitor these risks?
- Which of these risks would have the greatest impact on your business?
- What are the consequences of the risk for your business & clients?
- Where will you be in 3 -5 years if you continue as you are without taking precautions?
- What are the necessary actions to avoid the consequences?
Of course if you have not considered risk in this way, or perhaps more commonly not revisited your risk strategy then the risks to your business may have grown dramatically.
Sometimes risks will turn into problems without you even realising there was a risk. It can, and will, greatly impact your business.
With Cyber as the number 1 threat or risk to UK businesses it’s not simply a case of preparing for ‘if we are attacked’ but preparing for WHEN…..in simple terms it’s time to act!!
What can you do?
We help businesses like yours think, protect and contingency plan against risk. We can help you balance the risks that pose a threat to your business and capitalise on the risks that offer opportunity.
If your risk strategy is out of date or as with many small businesses you haven’t got one then get in touch to find out how you can protect your business.