Business leaders can indentify the risks that need addressing by: methodically looking at the risks surrounding business activities; assessing the likelihood of an event occurring; understanding how to respond to these events; putting systems in place to deal with the consequences; and finally monitoring the effectiveness of risk management approaches and controls.
Assistance with understanding and implementing a risk management process can be found at www.businesslink.gov.uk where fact sheets on risk management can be found under the ‘Grow Your Business’ section or by calling the National Help Line on 0845 600 9006.
How much risk to accept will be down to management to decide and should form part of the assessment process. An effective risk management system improves decision-making, allocation of capital and resources and planning and prioritisation. It can help anticipate what may go wrong, minimising the amount of fire-fighting or, in a worst-case scenario, averting disaster.
The print sector has been in a form of recession owing to a vicious price-war fuelled by overcapacity with falling margins over a long period. However, until relatively recently, the print sector’s clients have remained strong. However, now with the general economy in recession, the sector is further at risk as clients dwindle in number and subsequently reduce spending.
Some risks are particularly relevant and specific to the printing industry, such as the recent steep increase in the price of paper. A buying strategy covering preparation of supplier information, tenders and contracts, supplier selection, operational process and general purchasing rules could reduce future risk.
Lastly, risk management is not a one-off exercise and continuous monitoring and reviewing are crucial for its success. Monitoring ensures that risks have been correctly identified and assessed and appropriate controls put in place. It is also a way to learn from experience and make improvements to the risk management approach.
Andy Berrow, regional manager – Central London, Business Link
Viewpoint Risk management
Every business faces risks and dealing with these is a crucial management task. Some risks are generic and at the moment financial risks are top of everyone's list. While the financial situation is significant, other sections of concern, such as compliance risks, including employment and health and safety legislation, also need to be addressed. Advice on this can be found at www.hse.gov.uk/printing and www.acas.org.uk.
