What are the common risks?
Every business potentially faces challenges, or risks. The types of risk can vary from business to business but there are some most businesses have in common and generally can be split into two factors- internal and external.
The list below outlines the most common threats or risks to your business.
Internal risk factors
Organisational and operational
These are part of your operational and administrative procedures. These include disorganised or inaccurate record keeping, outdated or faulty IT systems or interruptions to your supply chain. If you don’t stay on top of these your customers could come to see you as unreliable, or you could potentially lose all your data.
External risk factors
Compliance risks are part of the laws and regulations you must meet, such as taxation, employment, health and safety, and fair trading. For specific information on taxation visit the ATO website or use our Checklist: Starting a business.
Environmental or natural risks
Each location and its business practices will influence the likelihood of each risk, but some to consider are natural disasters such as bushfire, hail, flooding and wind storm, property damage such as water pipes bursting or power failure.
To keep your business current, and relevant to the needs of your customers there are instances where it may be important to keep up with technological developments. It’s important to monitor what is happening with technology outside your business, chat with other business owners, stay tuned in to current trends by reading online, or find out more about how to develop an online presence that succeeds.