Take Charge Of Managing Business Risk

Back to Protecting your Business

Take charge of managing business risk

In a world that seems to be constantly changing, growing your business can seem challenging at times. It is important to have a clear view of the potential risks you may face and how you can protect your business without restricting business growth.

Change and uncertainty

The right path today may not necessarily be right tomorrow. Although balancing short-term focus with a long-term approach is difficult, benchmarking and adopting a rigorous analytical approach to processes, markets and products or services may help identify trouble spots before they hit the bottom line. A flexible and proactive approach to market shifts is essential but this can also help sustain longer-term growth.


Growth attracts competition. Reaching new markets and driving more revenue from existing customers is vital. Identifying competitors and customers through regular market analysis also enables informed business decisions to be taken regarding finance, processes and policies.


At its most basic, technology is used for the control of financial records, customer and business interactions and compliance, for example. As a business grows, even these functions become more difficult and eventually unmanageable. Ignoring IT developments could stifle growth. Try to view technology as an enabler. The creation of standardised, automated processes across a business can facilitate a focus on adding value and improve the enterprise-wide view of activities.

Risk Management

Business risks include strategic, compliance, financial, operational, and reputational risk. Risk levels increase during growth, especially when moving into foreign markets. Financial risk in particular covers a broad sweep of activities including managing interest rate fluctuations. Methods to mitigate risk for FX volatility, for example, include hedging using forwards and options. These can allow measured price adjustments over time if costs rise but may also benefit the business in favourable market conditions.


Poor cash and liquidity management can be a serious constraint on growth. The key is to control working capital management so that cash flow is optimised. This means balancing operational, tactical and strategic cash. Managing aspects such as inventory, suppliers, the cash conversion cycle, investment, and debt require coordinated planning across all operations and functions. Diverse solutions such as supply chain finance and cash pooling can keep the cash flowing as a business invests in growth.

Regulation and compliance

The regulatory impact on business includes national and international sector or industry-specific regulations, general regulations (such as environmental controls), and financial regulation. Businesses must understand each regulation that applies, its impact and how to deal with it. Demonstrating clear compliance shows effective management procedures are in place which, in terms of growth, may be an essential criterion for financial providers and investors and, in some cases, new customers.

Useful links

Find out more

Is your business as resilient and ready as it can be to face and recover from unexpected events such as fire, flood and civil unrest?

Stress can have a significant personal impact and present a risk to the business. What are the causes and how can you manage it?

In a world that’s more connected than ever, there’s an even greater need for security.

One method of protecting accounts receivables against unexpected loss is to use trade credit insurance.

As the UK moves into a new era of overseas trading relationships we reveal the risks and rewards and how you can protect your business when trading internationally.

A business should protect its name and its ideas just as readily as it would secure its physical assets.

China's lure as a lucrative market for British firms comes with a warning: look after your brand.

Criminals sought to exploit digital weaknesses of small companies in order to steal sensitive information and disable their websites.

Historically, cyber resilience was seen as the job of the information security team alone, but times – and expectations – are changing.

Need help?

Get in touch to learn more about our banking solutions