Bank’s Interest in your Risk Management
The rule of thumb these days is no risk management strategy, no loan.
Before contacting a banker, have on hand final data that determines the state of the business no later than a month previous to your application.
Can you demonstrate to a banker that you are fully aware of all risks that could possibly impinge on your business? Awareness is vital. There needs to be a management strategy for potential risks. Thismay involve insurance, disaster recovery plans, policies and procedures.
Compile a catalogue of risks as a written checklist for ready reference.
- Keep a sharp eye on anything to do with safety
- Consider risks to the business associated with staff
- There are potential risks to a business because of communication or power failures, foreseen or unforeseen downtime of equipment, loss of an important supplier or departure of key management to perceived greener pastures, by death or through disablement.
