How to manage risks and build resilience into your business

How to Manage Risks and Build Resilience into Your Business

July 1, 2025

BACKGROUND

In today’s unpredictable world, risk and resilience aren’t just buzzword — they are KEY to a business! From economic downturns and supply chain disruptions to cyber threats and global pandemics, businesses face a growing array of challenges. The ability to mitigate or remove those threats – or even thrive amid adversity – is what separates longstanding companies from those that falter.

HOW TO – BUILD RESILIENCE IN YOUR BUSINESS

Here’s how you can manage your own risks AND build resilience into your business

1. Develop a Risk Management plan

Start by identifying those potential risks to your business —both internal and external.

These could include:

  • Market volatility
  • Operational disruptions
  • Regulatory changes
  • Cybersecurity threats
  • Natural disasters

Once identified, assess the likelihood and impact of each risk. Create contingency plans and assign responsibilities so your team knows how to respond quickly and effectively

2. Diversify Revenue Streams

Relying on ONE single product, service, or client can be risky.

Diversification helps cushion the blow if one area of your business takes a hit, so the potential steps to take include the following:

  • Expanding into new markets
  • Offering complementary products or services
  • Exploring digital or subscription-based models

3. Invest in Software and Automation

Software more particularly (but also potentially AI now) can enhance efficiency, reduce human error, and provide real-time data for better decision-making.

Key areas to consider:

  • Ensure that you are on the Cloud i.e. for scalability and remote access
  • Automation tools (and/or AI software/tools) for repetitive tasks
  • Implement cybersecurity solutions to protect your cloud systems and and digital assets

4. Build a Strong Company Culture

Resilient businesses are powered by resilient people.

Create a culture of flexibility, transparency, a ‘can do’ attitude AND continuous learning.

Encourage open communication and empower employees to take initiative during times of change.

5. Look After your Cash (Carefully)

Cash flow is the lifeblood of business – and without it you will be lacking any resilience ?

Maintain a healthy Cashflow by:

  • A real focus on early invoicing, credit control and payment date for customers
  • Looking ahead at all times i.e. we suggest 13 weeks at all times
  • Understand your Costs of Sales
  • Build a separate tax cash fund AND an emergency fund
  • Plan ahead to secure access to credit facilities well before you need it

6. Review Continuously (each month or quarter)

Resilience isn’t a one-time project—it’s an ongoing process.

Use your regular finance or management accounts meetings to include a section for reviewing business risks and over business resilience.

FINAL THOUGHTS

Building an element of risk management AND resilience into your business doesn’t mean avoiding risk—it means preparing for it.

Storms will always come and go, but by taking the RIGHT steps at the RIGHT time, YOUR business will be able to better weather tomorrow’s storms –and come out the other side even stronger.

Do you feel that you could use some advice or guidance on proactively managing risks in your business or building some resilience?