🔊 Everyone has a plan until they get punched in the face🔊
This is a great quote by Mike Tyson that I share a lot! Because it’s SO ON POINT when it comes to business risk.
I always talk about building GREAT PLANS. And that is a crucial activity after developing your Moonshot vision.
👊🏻But a big part of the planning phase is about understanding the projected business risks.
Is not just about building the activities that you believe will get you there. It’s about preparing for all the things that can go wrong!
⛔️Those punches in the face
So a part of looking forward is preparing for business risk. It’s a key element of building strong foundations for success. I always say don’t leave anything to chance, that is crucial when it comes to business risk!
I’ve often been met with resistance to this exercise, People saying – ‘Shay we can’t predict the future’. While there are elements you can’t predict
✅There is a lot you can do and with that a lot you can prepare for
So what does business risk mean❓
There are multiple levels to consider
The Internal Risks
The External Risks
🎯Your Supply Chain
🎯The Economic Mood
When you have brainstormed all the potential risks (remember no idea is a silly idea here, the more the better). There are 3 questions you need to assess against
What’s the likelihood of it happening❓
Can it be detected easily or early❓
What will be the impact if it does happen❓
Then make calculated assessments and define the metrics that you are going to measure. For the ones you believe are more likely to be an actual business risk. And then the multiple model analysis that should be done.
The models define the activities that you will strive for and more importantly prepare for!
E.g. you are planning for a Profit-Making scenario and build activities in your plan to achieve this. That’s all well and good, now you have to add all the activities in there. That you believe could potentially happen, to protect all the internal and external threats or business risks.
🛡 This is how you protect your business and this is how you build the foundations for success.
If you have any questions, please get in touch, I’d love to help!
#futurestateacademy #systemsthinking #business