SMEs advised to invest in risk management

News Article - Monday, May 12, 2008

filed under: Business

Small businesses in Britain are being urged to invest in risk management advice and training.

According to the Institute of Risk Management (IRM), many smaller firms are not sure about how to deal with risk management.

Ian Fraser, IRM marketing manager, advises bosses of small and medium-sized enterprises (SMEs) to seek advice on risk management from "people such as their insurance broker, bank manager, Business Link and chamber of commerce".

"A simple guide to managing risk, the Risk Management Standard, is available to download from the IRM website (www.theirm.org)," he stated.

Businesses are advised to prepare for risks such as the loss of key suppliers or customers by appointing a dedicated risk manager and putting formal procedures in place.

Recent research by Experian Business Strategies and Harris Interactive indicated that just 26 per cent of British businesses have a formal procedure in place to deal with a potential reputation or media crisis, compared with 35 per cent of firms worldwide.

Effective accounting software can help small businesses to manage risk more effectively and keep accurate financial records.

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