Most businesses are unprepared to deal with a situation of a client walking out of business. As a business, have you ever considered what might happen to your products if your biggest supplier stopped his business or if one of your most important clients decides to stop your services? The truth is most businesses do not deal with these situations until it is too late.

Having a risk management solution in place helps a business, irrespective of size, to navigate through any forthcoming situations by being well prepared. Having a foresight helps a business to effectively recover from any probable loss and cover up costs by diversification or channeling resources effectively.

Businesses could use the following steps for guidance to set up proactive risk management solution in place:

• The basic strategy for setting up a risk management protocol would be to have a professional management officer who can foresee all operations. The management officer would be able to implement protocols when there is a wind of things spiraling down and reroute resources to handle the situation proactively.
• Periodic assessment of businesses is essential to know the potential risk factors as well as to build a comprehensive strategy for the future. By taking stock of the situation periodically, a business can monitor the key processes required for the business’s operation and those that are expendable.