Running and managing a successful business requires all of your energy all of the time. Business owners and managers are constantly juggling the changing demands of their business from overseeing customer service to working on business development. Sometimes there just isn’t enough time to do everything. Unfortunately Risk Management is one area of the business that often gets overlooked. Business owners simply neglect Risk Management until it is too late or there is an incident that threatens the very foundations of the business itself.
So if your business doesn’t have the time or the resources to manage risk, its worth considering outsourcing these essential risk management services to a risk management partner you can trust. An agency who can offer your business the services it needs to fend off any nasty surprises. Here we look at how a good risk management partner will not only help with risk management but will help grow your business too, killing two birds with the one stone. Apologies to all the bird lovers but there’s no better analogy.
1. Know your customers
Every business needs more customers if it wants to grow but that doesn’t mean every customer is right for your business. Most businesses will be familiar with Anti-Money Laundering (AML) checks and will also appreciate the value of assessing new customers but perhaps your business simply doesn’t have the time or resources to properly evaluate new customers. A good risk management firm can offer you a full and detailed due diligence report on new customers at the onboarding stage to allow you make an informed decision regarding their engagement as a new customer and their future retention. Take on too many bad customers and you will stifle your business’s growth.
2. Know your debtors
What happens when your customer becomes your debtor? It’s time to check how well you knew your customer. Long-standing customers can go way back but when they stop paying or default on contracts you need to find out what’s changed since you started doing business with them; Where do they do business now? Who’s in charge? Has their company structure changed? Have they incurred other Judgment debts? Have they moved assets? Where will your debt rank? You need the full picture of your debtor fast to get a handle on your debt. A good risk management partner will be able to provide you with the up-to-date and accurate picture of your debtor by drawing on its expertise, experience and investigative tools. They should also be able to facilitate any action that is required to manage the debt in conjunction with your legal advisors such as credit checks, financial reviews, asset checks, tracing enquiries and investigations right up to security enforcement.
3. Know your business partners
The people you do business with can make or break your reputation and reputation is key to business growth. New partnerships and mergers are important milestones for any business and essential due diligence checks should be carried out to ensure everything is as it should be, there is no conflict of interest and the new arrangement is a good fit. A good risk management partner will offer a discrete enquiry service where business track record, reputation and background enquiries give the greatest comfort that you are making the right decision for your business.
4. Know your employees
A business is only as good as its employees make it. With every new hire there is opportunity for growth but there is also risk. Having a robust employee screening policy is essential for ensuring the protection of your business. A good risk management partner can handle the screening process on your behalf. They are best placed to carry out the time-consuming checks into identity and address verification, educational background, credit history, company directorships, regulatory sanctions and previous employment record. Your business will reap the benefits of outsourcing this function by saving time and resources and avoiding poor hires that cost money down the line and you will retain control by having the final say.
5. Satisfy Compliance obligations
Whether your business is subject to stringent regulatory controls or you choose to adopt a good corporate governance policy, a good risk management partner can help. Outsourcing essential compliance checks to a reliable risk management agency will provide your business with peace of mind that experienced personnel are handling this risk for you. In turn you are free to focus your business on what it actually does, and the freed up resources will lead to growth and expansion for your business.
6. Reap the Rewards
There is no point talking about growth without mentioning savings. What is the point of paying for a service if it ends up costing you more than its worth. A good risk management partner will save you money, time and resources. In the short-term you will save on time, money and resources by outsourcing risk management services and in the long-term you should avoid risky and costly mistakes.
7. Be Proactive
Don’t wait for the worst to happen. A good business should be on top of its risk by facing up to the potential pitfalls that might come its way. By taking action and having proper processes in place you have a better chance of warding off disaster and you will attract more business. There are numerous ways a business can do this by introducing a robust employee screening process, regularly monitoring and reviewing all processes and having a strategy in place for tackling bad debts. A good risk management partner can support your business with these essential services so you can focus on growth.
8. Respect Data Protection
It is imperative that your risk management partner understands and operates in full compliance with data protection legislation and in particular the General Data Protection Regulation (GDPR). You should check that your risk management partner has robust data protection polices in place to ensure that a person’s privacy rights are safeguarded in the course of any processing of their personal data. To achieve this there are certain legal obligations which both the data controller and data processor must obey and a good risk manager will be one that you can rely on to comply fully with the Data Protection legislation and the GDPR protecting your business and allowing it to grow.
In order to grow your company, you want customers who pay to outnumber those who don’t. You want staff that you can rely on and trust and not those who threaten your very existence. You want business partners who will add value and you want to avoid any conflicts of interest in any potential partnerships or mergers.
We work in partnership with business owners and companies to help facilitate their growth by providing premium risk management services and strategic support including debt recovery assistance and employee screening which helps take risk out of the equation. This is what you should look for in your Risk Management partner. For further information feel free to contact us.
Please note that this article is for information purposes only and does not constitute legal advice.