When did you last review your Business RISKS?
I was motivated this week to repost this earlier article I created several years ago after several separate conversations around business and the need on many occasions for tough conversations. As business owners many of us live and work making tough decisions in isolation.
If you are fortunate enough you may have a business partner, spouse, and team member who is prepared on occasion to offer critical but needed feedback. One exercise that I use at some point in the mentoring process is delivering a risk assessment on a business.
Normally the core question is;
What is the Greatest RISK in your business? And how can you circumvent or limit the damage that that risk could make?
Normally after five or six mentoring sessions, I casually ask clients to perform a ‘Risk Assessment’ of their business model. At this point I always warn customers in advance that this can be both an uncomfortable and challenging business mentoring session.
But in the long-run reveals invaluable insights and solutions on how to establish greater certainty for their business.
Currently many businesses are being impacted directly or indirectly with geopolitical, economic & social challenges, some of the topics relate to:
- Interest Rates: Commercial Mortgages, Credit & Banking etc.
- Supply chain issues: JIT, International Shipping, lead times with international manufacturing & production.
- Inflation
- Pro’s, Con’s, Opportunities: Currency Exchange Rates
- Fluctuating Costs: Energy, Fuel, Food & other Commodities.
- A.I and emerging technologies
- HR legislation: i.e. N.I & demand for higher wages
- New Tax Rates: inconsistent Government decisions on Taxation, Rate of Tax etc.
- Change in Social Behaviour: Home food delivery vs Eating out, Stay vacations vs Long-haul, Online buying vs High Street Retail etc.
Some issues may not seem to affect you immediately but will eventually trickle down with consequences on your business directly or indirectly.
‘I always remind clients that with every problem or risk there is always a counter solution or opportunity.’
Uncertainty to Certainty & Threat to Opportunity
When presenting this session my aim is to help business owner’s move from a position of ‘Uncertainty to Certainty & Threat to Opportunity.’
This can be achieved by building a strategy of reducing your business liabilities & improving your assets. Revealing areas in your business where you may be exposed financially or operationally, encouraging you to make improvements where your are more protected & secure. To studying new innovations and technology that would advance productivity or eliminate weaknesses in their business model. In some cases re-engineering there business model with the use of traditional design skills and thinking.
Why not do a simple S.W.O.T ANALYSIS on the six key functions of your business and consider where you may be potentially exposed to risk? And implement actions to provide added protection to your business model.
1. Finance
2. Sales (+ Marketing)
3. Management
4. Human Resources
5. Operations
6. Products/ Services
Here are just a few questions that I ask business owner’s. Over the years this has triggered some unusual responses, resulting in some impactful conversations and strategical decision making.
- Do you have a single customer that accounts for more than 40% of your turnover? What would happen if they no longer existed?
- What is your customer ratio, does this present any risks: Private vs Public Sector? Domestic vs International? Sole trader vs Corporation?
- Do you have any single supplier that if they ceased to exist would have an instant impact on your business operations, manufacturing, service delivery?
- Do you have any employees- that without them your business would implode into chaos or would be dramatically impacted in some way?
- What is your greatest threat with relationship to: Automation, A.I., Cyber Security, Software dependency?
- What would be the tipping point if there was an increase in: Energy costs, Fuel Costs, Raw materials, Currency exchange rate, Interest rates, Commercial Rent, Commodity prices?
- Is there any new legislation that may impact negatively on your business model? Health & safety standards, minimum wage, N.I costs, Laws etc. Anything coming in 2026?
If any of the above questions trigger a reaction, please feel free to read on with some of my solutions in the following article
How to design a high-performance…
And discover how to turn ‘Uncertainty to Certainty & Threat to Opportunity.’ Alternatively why not learn more about our Business Design Mentor sessions and book an appointment now.
Looking for a Business Mentor? Feel free to drop me an email to arrange an informal chat info@businessdesignmentor.com
Or if you would like to continue this conversation feel free to drop me an e-mail for a coffee and a chat!
© 2026 Denise McKeever/ Business Design Mentor. All Rights Reserved
Denise McKeever
D.F.McKeever(Denise) is a Business Mentor & Author. As an experienced designer and ex-business owner & founder for over 25 years she offers a unique perspective to entrepreneurship, business and economics. Unlike other business mentors Denise offers a unique perspective in the use of creativity and design in building sustainable enterprises.
