The British economy is now officially in a recession. The financial downturn was predicted at the beginning of the country’s lockdown following the COVID-19 outbreak and, while there remains considerable debate as to how significant the eventual effects will be, it is certain to continue for the foreseeable future. And, with Brexit on the horizon, businesses will have to take even greater caution, working harder to ensure their survival over the next few years.
As demonstrated during the lockdown, many businesses were adaptable and able to utilise new technologies and services to allow continued operation. Employees were able to work from home and many businesses were able to market and sell their products online instead. Some businesses, such as Leon Restaurants, quickly transformed their eateries into supermarkets, a change that may remain in some stores.
Others, however, have not been able to adapt and, as we slowly begin to leave lockdown, many will continue to close. Certain industries have been significantly affected, such as the travel sector. They will not be able to adapt in the same way as many remain cautious about air travel and international tourism for fear of contracting the virus or being forced to isolate. Many airlines, including major brands, have begun seeking help to prevent job losses.
Whether a sector has been greatly affected or not, the businesses that do continue to operate will be seeking to protect themselves and their staff. Fewer loans are being offered and market uncertainty ensures that businesses will be unlikely to seek expansion if it involves risk. Instead, they will be looking to do the opposite. If a sudden change in the market or supply occurs, it may compromise a business, pushing it beyond its capacity to recover, which is why minimising risk and protect the current business is a key action to survive a post-COVID economy.
Risk management can be implemented in a number of ways and it first requires action to identify the risks themselves. Scrutinise each department, building, and task so as to evaluate the potential likelihood of issues occurring. This can be ensuring you have legally-compliant timber fire doors to assessing the security of your internal servers. Many of these should already be covered in a business’ risk assessment, however, it is important that they are reviewed to cover potential COVID precautions.Read more: ow are Personal Loans Beneficial During Medical Emergencies?
Once you have reevaluated your risk assessment, the next step is to minimise and remove as much room for error as possible. Departments that handle money, such as payroll, can be particularly vulnerable areas and minor mistakes can be costly. While transactions still need to occur, their risk can be mitigated with checks and balances, ensuring that human error is accounted for.Read more: ur New Normal: Have We Really Adapted?
Finally, once you have assessed and minimised risk, you and your team should have a response protocol that can be enacted should you encounter an issue. Ensure that, at each level of management, staff are fully aware of what action to take, as well as who to contact, to contain the damage as quickly as possible.
By taking such precautions, even if seemingly extensive, your business will be steadier and more readily equipped to handle further disruptions to the economy, allowing your business to make it through an uncertain future.