Elephant in the room and it's a critical business risk!!

7 minutes Mark Halstead

I think it's fair to say that where risk is concerned there will be some that are more risk averse than others. Nothing wrong with whatever your level of risk aversion, however when we asses these risks we normally make a calculated decision. And with this elephant, it should be no different.

The starting point for any risk is the threat, essentially it’s the potential cause of incident that could lead to harm, this is followed by a vulnerability, a weakness that could be exploited by one or more threats, this then leads to the risk which is the combination of both of these which can cause harm

For example, if I still played football there could be the threat of an injury (just by the very nature of the sport), I've already broken my ankle and leg once so they are the weaknesses (or vulnerabilities), the risk is permanent damage to ankle impacting on what I can do in the future.

I have to make a calculated decision and if the risk was not walking again, then it might be a different decision all together!

To help me make that decision I have to have full facts available and weigh up the pros, cons and also decide how much risk I am comfortable with, do I: 

a)   Avoid the risk - don't play football

b)   Accept the risk - this is me understanding and accepting the possible consequences, not ignoring it Reduce the risk - wear ankle protectors and don't go in for any challenge I'm not going to win.

You get the picture. 

In business there are situations that occur on a regular basis that require a calculated decision after having a holistic understanding of the situation, the facts and risks. If we feel we need more information we typically go to get it. For example if there's a tax or financial implication with might ask our accountant, if there is the potential for any legalities we would probably engage a solicitor.

There is however one big elephant in the room that many don't understand, think will go away or won't affect them. We all know what happens when there's an elephant in the room, it only gets bigger and more painful to deal with unless it's acknowledged and dealt with. This particular elephant is critical to your business, unfortunately if we don't deal with the elephant it could well bring your business down one way or another. Don't let it happen, call 08432 906 729

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richard west Mark Halstead Partner

Mark's experience is big data analytics, financial services and building businesses provides Red Flag Alert with strategic direction.