|
Companies Rate Their Top Business Threats - Axa survey
There are many different threats that can
cause business damage and even business
failure; but surprisingly, the UK’s weather
is considered a bigger risk by small
businesses than bad management!
 Insurance
company AXA’s Business Risk Monitor survey
has revealed that UK SME directors believe
that Environmental Disasters – such as
flooding and hurricanes are a more common
reason for business failure than poor
management or competition.
When asked for what they thought was the
most common reason for business failure,
just 3% said bad or poor management; while
just 1% believed it was due to competition.
A surprising 12% however, said that a
potential environmental disaster was a
significant threat.
The top seven reasons in the survey were:
-
Unstable Economy
-
Lack of good staff
-
Lack of business continuity planning
-
Technology failure
-
Unreliable suppliers
-
Non compliance with legislation
-
Environment disasters
The lack of importance given to bad
management and competition is surprising,
Douglas Barnett of AXA states “Both of these
reasons are regularly mentioned by
organisations that handle insolvencies and
in the media, as reasons why businesses fail
in the UK.
More positive was the fact that small
businesses are beginning to realize the
importance of business continuity planning.
While 39% of SMEs (1.4 million businesses)
still do not have a continuity plan; it is
positive that more business owners than ever
recognize their importance.
A good continuity plan can help you to deal
with almost any major threat, including the
weather! It will help you to take important
action quickly, and will provide a useful
blueprint for employees to help remain as
active as possible. In fact, a good
continuity plan can help you to deal with 5
of the top 7 threats given by SME bosses.
How a continuity plan could help:
Unstable
Economy -
The plan could detail cost cutting measures,
promotional ideas, stock changes and other
measures; allowing you to quickly take
action and keep your cashflow running.
Lack of good
staff -
The plan can help detail external agencies
or companies that could help supply services
in the event of losing a member of staff or
not being able to find a good enough
candidate for a role.
Technology
failure - If your computers or
other electronics fail then the plan can
help you to fix/replace/work without the
technology as efficiently as possible;
minimising disruption and costs.
Unreliable
suppliers - If your supplier goes
bust, supplies poor quality stock, or
refuses to supply you altogether; the plan
can hold vital information to keep your
business active. You can list other
suppliers, including those who can supply at
short notice. This lets you take action
immediately without needing to go and do
research whilst your businesses is being
damaged.
Environment
disasters - The plan can help by
detailing emergency procedures such as
backing up and removing vital data and
equipment. It can also provide details of
other office space where you can go if your
present workplace is damaged; helping you
get back into operation as quickly as
possible.
The impact of a major threat can be huge,
leading to severe business damage or even
forcing you to close for good. A bit of time
spent on a good continuity plan could mean
the difference between a bit of damage and a
complete disaster; it is something you (and
your employees and customers) will be glad
you did should the unthinkable ever happen.
Visit AXA's business continuity site
information here.
|
