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Risk management in a recession

Recessions inevitably put extra strains on businesses and in a series of articles we have put together some hints and tips to help show how risks may be changing and what businesses can do to reduce them. This paper offers some general tips on how businesses can mitigate their risks.

General tips

Redundancies: Increased redundancies are an inevitable consequence of recessions.

If your business is forced to make redundancies you should: 
• Check the list of keyholders and if necessary replace all locks to ensure only those with proper authority hold keys for the premises 
• Change alarm codes 
• Inform Alarm Receiving Centre if normal operating hours change 
• Check vehicles regularly for damage. Employees in fear of redundancy may not report accidents

Crime threat heightened: Crime often increases in a recession.

Here are some ways to mitigate the risks of it affecting your business: 
• Be more vigilant with security procedures when closing down for the day 
• Minimise the amount of cash held on your premises and consider a suitable safe for money that is held at work 
• Avoid rubbish or combustible waste being left outside and close to buildings – incidents of arson increase during a recession

The team’s health and safety:

Some extra attention given to staff issues will pay dividends: 
• Make sure your people are trained sufficiently to do the tasks you ask of them 
• Try to retain someone who is competent enough to take overall responsibility for health and safety 
• Inform Alarm Receiving Centre if normal operating hours change 
• Consider enhanced training and skills development

Slips, trips and falls: People are becoming more litigious and prepared to pursue recompense for even the most trivial incidents.

Some simple steps you can take to avoid litigation are to: 
• Make sure all access areas, particularly public areas, are kept clear from obstructions 
• Keep all access areas clean and well maintained 
• Pay particular attention to surfaces in wet weather

Business impact:

You can take some simple steps to avoid risks, such as by: 
• Reviewing your continuity plan – is it still accurate? 
• Checking with suppliers and customers to ensure you are aware of any changes they are planning that might impact on your business 
• Investigating the potential to use alternative suppliers, always ensuring quality will not be compromised 
• Being aware of any increased risks to your business should your maintenance programmes be reduced

Unoccupied properties: The risks of vandalism and arson rise considerably in recessions.

Some ways to reduce the risks by: 
• Clearing out combustible material from buildings and areas near to buildings 
• Preventing unauthorised access with effective building security such as good quality locks and window screening. Alarm protection and security patrols might also be appropriate 
• Maintaining regular inspections to ensure standards of security remain high

Need help?

We have considerable experience in risk management so if you’d like more information, or would like us to review any of your policies, you can speak to one of our now.

Call 01789 761670

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