Five ways to mitigate risk in your business today

Owning or managing a business can be incredibly rewarding, however if you work with products, services, customers, clients, suppliers, staff, shareholders or volunteers - then you’re in the business of risk! 

Risk management through a comprehensive crisis or issues plan is a highly valuable tool that guides businesses, small and large, in those times when clear thinking is paramount, but not always realistic. Every business should consider their potential risks and have a plan of attack in place if it ever comes to that. Think of it like insurance; you never want to have to use it, but you’re glad it’s there if you do!

Whether your issue or crisis pops up when you least expect it, or whether you’re aware of something brewing and wish you could brush it under the carpet, how you manage an emerging situation can often be talked about more than the situation itself!

While every Issues Plan we develop at Elevate is unique to each business and brand, there are elements that can apply to all industries and business types.

 Here’s what you need to start thinking about now, to help manage and mitigate potential damage in your business.

Scenarios

The old adage of “fail to plan, plan to fail” comes to mind when preparing for issues and crisis management. Try and plan out every possible scenario that could adversely affect your business so you start thinking now about how you would like to handle the situation.

You might be in the position to experience a staff strike, product tampering, food poisoning, supply shortages, customer injury, brand tarnishing or defamation on social media, legal battles made public or any number of other scenarios that relate to your industry specifically. Once you have identified these, you are in a position to start planning the best approach to managing these situations, rather than panicking on the spot and making poor decisions.

Spokespeople

Who will be your dedicated spokesperson when an issue breaks? The media may call your business for comment and if you don’t already have a plan in place, your administration staff could inadvertently damage your brand. By stating up front to staff what the media process is, you ensure only authorised people comment on your company’s behalf. It doesn’t always have to be your CEO or MD either. Whoever you use, you want to make sure your spokesperson comes across as presentable, warm and trustworthy, and they need to be well spoken and confident. 

Key messages

For every situation, you can develop some statements to stick to when under pressure. Your business may already have key messages in place for your brand, such as “longest running restaurant in Australia” or “providing quality tuition at affordable prices”, but you need to draft circumstance specific key messages in an Issues Plan. For potential customer injuries or tragically, deaths, your key messaging will of course focus on the thoughts towards the victim and their family and friends, with commercial acumen off the table in the meantime. If you’re in a situation where suppliers cannot provide you with ingredients or stock, then your messaging may be around your ongoing working relationship with them and the ability to find a fast solution. Stick to no more than three key messages so your messaging is clear and concise.

Communication chain of command

Whatever the situation, you should have a chain of command and list of responsibilities in place. Perhaps all personnel and customer issues are reported to HR who then escalates to the MD; or stock or ingredient issues are reported to the Supply Chain Manager who may be authorised to speak on the matter to media and other stakeholders. Knowing your channels and responsibilities means no one is left wondering when it counts.  

Top tier media

In the event you need to send a media statement out, having a list of top tier media already on hand will help you act in a timely manner. This should be segmented by industry or news type, such as business, hospitality, health etc so you can target your statement to the right journalists, and include the journalist’s name, outlet, email address and phone number. Top tier doesn’t always mean the largest publication either. As a local café owner or hairdresser facing an issue, it might be your local newspaper and television station as your top media. If you’re an aged care provider, you might focus first and foremost on industry and trade publications as well as health writers for online news. Think about this list carefully and review it regularly as journalists tend to move positions and outlets often. The last thing you need is a pile of bounce backs when you’re facing a crisis.

Issues and crisis plans are timely documents, so it essential to start preparing one soon if you don’t already have one in place. Elevate specialises in preparing comprehensive, tailored Issues and Crisis Plans, and can be your communication partner when you need it most. Make this a priority in the new financial year as an issue could be brewing right now. Remember, if you’ve failed to plan, you have planned to fail.