Developing a Risk Management Plan for a Small Business

1. Developing a Risk
Management Plan for a
Small Business

2. Developing a
Risk
Management
Plan for a
Small Business
 Financial professional Jeff Drobny serves as a CIO at the Cargill
subsidiary Black River Asset Management. Having served Cargill
for more than two decades, Jeff Drobny played a significant role in
the launching of Black River and is highly experienced in a variety
of financial services, including risk management.

3. Developing a
Risk
Management
Plan for a
Small Business
 Although completely eliminating risk from a business is often
impossible, proper planning can minimize it. Effective risk
management plans guide businesses clear of potential risks that
may cost money and time.The following are just a few ways of
developing an effective risk management plan for a small
business.

4. Developing a
Risk
Management
Plan for a
Small Business
 - List the potential risks your business may face, even if they seem
miniscule.This is often more difficult than it may sound due to the
many areas that you may overlook when thinking about risks.A
good way of ensuring you think of everything is to cover social,
technological, political, and economical factors.

5. Developing a
Risk
Management
Plan for a
Small Business
 - Once risks are identified, completing a risk assessment reveals
how likely it is that each risk will occur. A part of this process
includes determining who will complete the assessment and what
it will cover. Determining the likelihood of potential risks allows for
the prioritization of each risk, thus allowing you to focus on
avoiding the most likely problems.

6. Developing a
Risk
Management
Plan for a
Small Business
 - Planning an appropriate response to each risk, whether its
mitigating the risk, exploiting it, or avoiding it altogether, ensures
you and your business are prepared.While some risks are easily
handled, others are better left alone.Thinking about every
possible outcome helps during this process because it allows you
to get an idea of what each plan may mean for your company.

7. Developing a
Risk
Management
Plan for a
Small Business
 - Finally, determine how often your risk assessment will be
reviewed. Regularly checking risk assessments catches any
possible risks that are new to your field and allows you to re-
prioritize them should things change in your business.