Wednesday, 27 July 2016 09:34

Business risk management: how does your company score?

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If you know your company is heading for trouble, you need a turnaround strategy. We’ve created a free checklist you can use for your business risk management.

This list will assess if your company needs to employ a turnaround strategy, and what areas you should be focusing on.

Place a tick beside any sentence that applies to you: 

Management structure

  • - Are there governance and management standards in place?
  • - Is the management structure appropriate for the size, type and complexity of the business?
  • - Do the members of the management team understand their roles?
  • - Is there a balance in participation, and balance of power?

Expertise

  • - Is the management team aware of the forces affecting their industry/market?
  • - Are your staff fulfilling the critical functions, sufficiently skilled?
  • - Do they recognise the challenges facing the business?
  • - Are the staff capable of a turnaround?

Decision making

  • - Are the managers on the same page, and do they meet regularly?
  • - Do the managers have a clear strategy/vision and is it appropriate?
  • - Do the managers have high integrity and honesty?
  • - Are decisions made in a way that is appropriate for the business?

Systems

  • - Is the business plan appropriate for the size/type of business?
  • - Is management financial information readily available?
  • - Are the management information and key performance indicators adequate for the business?
  • - Is accurate, meaningful management information produced on time?
  • - Do you meet services levels expected?

Style

  • - Are your staff open and cooperative in discussing and addressing the issues facing them?
  • - Are your staff customer focused?

Succession planning

  • - Is succession planning an issue for the business?
  • - Can existing managers be relied on?
  • - Have adequate plans been made for the future?

Commitment to the company

  • - Is the management team committed to the company?
  • - Do the managers have a stake in the business?
  • - Are the managers good at leading and motivating their workforce?

Trading

  • - Can you trade profitably?
  • - Do you have support from secured creditors?
  • - Are your secured creditors supporting your trade on strategy?
  • - Will staff see the process through?
  • - Would creditors defer or compound their debts?

Any boxes left unticked could be a problem for you. Add up the number of boxes you haven’t ticked and find your result below.

Less than 5: A healthy business

Congratulations, your business is low risk, and not in need of a turnaround strategy. While there are always areas you can improve, it looks as though things are running smoothly and you’re in no risk of insolvency.

Between 6-12: Time to get proactive

While you’re still trading and things don’t seem that bad, you’re not as risk-free as you’d like to believe. Don’t ignore these important signs – you need to get proactive about business risk management and work through these issues before they become bigger problems later on. Call McDonald Vague to talk about a treatment plan to get your business back on its feet. 

More than 12: Heading for trouble

Your business could be in danger and you need to act immediately. You need to talk to a qualified professional who will help you figure out your company's turnaround strategy. Call the friendly team at McDonald Vague today.

Read 1350 times Last modified on Friday, 10 March 2017 12:42

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