Risk Management—the Five Ws

You can’t prepare for a possible disaster if you don’t know how much impact on your business the different situations could have. So, before planning for recovery we need to know what we would be recovering from – the risks that are out there.

In order to manage these risks we must first decide:

  1. What are those things that can happen?
  2. What external issues can impinge on your business?
  3. What is the likelihood of these risks happening?
  4. What is the cost to your business when it happens?
  5. What are the costs involved in preventing them happening?

After determining what can happen — items 1 and 2, then items 3, 4 and 5 are used to compile a table (Table 1) to guide you in managing the outcome of items 1 and 2 occurring.

What are those things that can happen?
Communications outage; fire; flood; hard drive crash, power outage—to name but a few.
However, the risks to which a large finance organisation may be exposed differ widely from those relating to a small business.

What external issues can impinge on your business?
These could include government legislation; legal problems, or strike action.

What is the likelihood of these risks happening?
Here you need to assess a probability for each risk; best expressed as a percentage per year.
As an example, the possibility of a power failure is more likely in a bushfire or storm than at other times. So the probability of a power outage can also depend on your physical location as well as the average weather pattern.

What is the cost to your business when it happens?
Several calculations are involved here, including the probable duration of the crisis as well as the problem itself.
If you rely on external communications to conduct your business the cost to you if this event took place would be high. Not only in lost revenue but also the possibility of losing clients.

What are the costs involved in preventing them happening?
Prevention, as a business cost, is not necessarily better than curing it when it happens. Again, other factors such as the probability of happening also need to be taken into account.

Risk Analysis
To focus on each risk, and supply an overall picture, the use of the following table is suggested:

Terence Kierans CAVB (Certified Australian Virtual Business)
Principal, Cyberspace Virtual Services
PO Box 93 Quinns Rocks, Western Australia 6030
http://www.virtualservices.com.auExperience the Difference
http://vacertified.com/client-info/First in the World  to be VA Certified (and you can benefit)
http://www.avbn.com.auAustralian Virtual Business Network—You Deserve the Best
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Analyze Your Business

80% of businesses affected by a major incident close within 18 months.

90% of businesses that lose data from a disaster are forced to shut within two years.

Formal analysis of your business is the essential foundation for Business Continuity Management (BCM). This analysis will provide you with an understanding of your business and what is critical for its continued operation.

Ask yourself these basic questions:

  • What are the principle business objectives of your business?
  • What are the deliverables (products / services) of these objectives?
  • When are the objectives to be accomplished?
  • Who is necessary to the achievement of these objectives?
  • How will these objectives be achieved?

You may, or may not, have a Business Plan and / or Mission Statement. If you have, then they should provide the answers to these questions. If you haven’t then now is the time to produce one.

There are critical activities and their dependencies that enable the achievement of your business purpose. These are the focal point of your Business Continuity Plan (BCP).

The components of these critical activities include:

  • People
  • Facilities
  • Persons  with a financial interest in your business
  • Your  suppliers
  • Your  clients / customers
  • Functions
  • Processes
  • Materials
  • Telecommunications
  • Technology
  • Data

Bear in mind that there are external organizations too that can have an effect on your critical activities. They can include:

  • Government bodies (regulatory and non-regulatory).
  • Your competition (not necessarily in the same line of business as you).
  • Trade Unions.
  • Professional organizations.

There are two distinct and complementary processes to a further understanding of your business and the identification of its critical activities and dependencies. They are the Business Impact Analysis (BIA) and the Risk Assessment. These will be examined in future blogs.

The author acknowledges the Business Continuity Institute as a source for much of this information.

Terence Kierans CAVB (Certified Australian Virtual  Business)
Principal, Cyberspace Virtual Services, Western Australia
www.virtualservices.com.auExperience the Difference
http://vacertified.com/client-info/First in the World to be VA Certified (and you can  benefit)
www.avbn.com.auAustralian  Virtual Business Network—You Deserve the Best
2007 Thomas  Leonard International VA of Distinction Award Nominee
Contented Member of ‘A  Clayton’s Secretary’

Use our skills to help you  succeed
Tel: 61 8 9304 6983 Fax: 618 6230 5156 Mobile: 61 414 25  1091 UK Residents: 07092391723

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Facing Fears in Business

The 5 Archetypes of Facing Fears in Business

Are you procrastinating in business? Do you keep coming up against “brick walls” that stop you growing your business? Maybe you are flat out, with your wheels spinning and not making the money you should be. I think we all find ourselves in these situations at times. Very often, the reason this happens is because there is a fear we are holding onto that we are not even aware of. As entrepreneurs, if we don’t deal with this fear and move on, our businesses will never reach the stage they should.

To read the entire article and find the rest of the quoteBefore you can have a mind-shift you first need to ….” Please also make sure you leave your comments below the article. I’ll read and respond to every one personally!

You can read this entire article and please leave a comment
and join the conversation over here.

Janet Beckers is the host and founder of Wonderful Web Women.

An award winning on-line community recognised for generous and honest marketing advice for women on the internet. She is also an international best selling author and multiple award winner, including Australian Marketer of The Year 2009.

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Systemising Your Business

A Business Fusion workshop I attended last week amplified my belief that many businesses, large and small, do not operate on a system.

E-Myth Revisited is a book which all business owners and managers should treat as a bible. It too lays down a methodology for systemising your business, the basics of which are just as applicable to the small business.

The mainstay of systemising your business is documentation; documenting, from beginning to end, every process your business employs. Have you documented all the actions that you accomplish in running your business on a daily basis?

From experience, the average business owner does not enjoy writing documents—unless it is part of their business; as it is mine. I have heard of business owners who have claimed that that their business really is systemised- it’s just that the systems are all in their head. Sorry guys—and you may not like this—but that doesn’t count!

Take that first step today; spend a few days paying particular attention to the activities that you perform and record everything that you do in a notebook or journal. Now that you have recorded your actions, organise and order them into groups (for example: accounting, client processes, product creation, answering e?mails, etc).

Now we come to the crunch—put it all down on paper.

Don’t want, or have the time, to turn that data into information that can, and should, be used. Then outsource it to a documentation expert.

*****

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Terence Kierans CAVB (Certified Australian Virtual Business)
Principal, Cyberspace Virtual Services, Western Australia
www.virtualservices.com.auExperience the Difference
http://vacertified.com/client-info/First in the World to be VA Certified (and you can benefit)
www.avbn.com.auAustralian Virtual Business Network—You Deserve the Best
2007 Thomas Leonard International VA of Distinction Award Nominee
Contented Member of ‘A Clayton’s Secretary’

Use our skills to help you succeed
Tel: 61 8 9304 6983 Fax: 61 8 9304 3202 Mobile: 61 414 25 1091 UK Residents: 07092391723

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The Power of Asking; 7 Ways to Boost Your Business

The Power of Asking; 7 Ways to Boost Your Business
by Jack Canfield

Boost Your BusinessThe gift called “asking” has been around for a long, long time. One of life’s fundamental truths states, “Ask and you shall receive.” Kids are masters at using this gift, but we adults seem to have lost our ability to ask. We come up with all sorts of excuses and reasons to avoid any possibility of rejection.

Yet the world responds to those who ask! If you are not moving closer to what you want, you probably aren’t doing enough asking.

Here are seven asking strategies you can implement in your business (and in life) to boost your results and your bottom line:

Asking Strategy #1: Ask for Information

To win potential new clients, you first need to know what their current challenges are, what they want to accomplish and how they plan to do it. Only then can you proceed to demonstrate the advantages of your unique product or service.

Ask questions starting with the words who, why, what, where, when and how to obtain the information you need. Only when you truly understand and appreciate a prospect’s needs can you offer a solution. Once you know what’s important to them, stay on this topic and find solutions for them.

Asking Strategy #2: Ask for Business

Here’s an amazing statistic: after giving a complete presentation about the benefits of their product or service, more than 60 percent of the time salespeople never ask for the order! That’s a bad habit, and one that could ultimately put you out of business.

Always ask a closing question to secure the business. Don’t waffle or talk around it—or worse, wait for your prospect to ask you. No doubt you have heard of many good ways to ask the question, “Would you like to give it a try?” The point is, ask.

Asking Strategy #3: Ask for Written Endorsements

Well-written, results-oriented testimonials from highly respected people are powerful for future sales. They solidify the quality of your product or service and leverage you as a person who has integrity, is trustworthy and gets the job done on time.

When is the best time to ask? Right after you have provided excellent service, gone the extra mile to help out, or in any other way made your customer really happy.

Simply ask if your customer would be willing to give you a testimonial about the value of your product or service, plus any other helpful comments.

Asking Strategy #4: Ask for Top-Quality Referrals

Just about everyone in business knows the importance of referrals. It’s the easiest, least expensive way of ensuring your growth and success in the marketplace.

Your core clients will gladly give you referrals because you treat them so well. So why not ask all of them for referrals? It’s a habit that will dramatically increase your income. Like any other habit, the more you do it the easier it becomes.

Asking Strategy #5: Ask for More Business

Look for other products or services you can provide your customers. Devise a system that tells you when your clients will require more of your products. The simplest way is to ask your customers when you should contact them to reorder. It’s often easier to sell your existing clients more than to go looking for new ones.

Asking Strategy #6: Ask to Renegotiate

Regular business activities include negotiation. Many businesses get stuck because they lack skills in negotiation, yet this is simply another form of asking that can save a lot of time and money. Look at your vendors and suppliers and see if there are areas where you can be saving money. Just ask.

All sorts of contracts can be renegotiated in your personal life, too, such as changing your mortgage terms and rate, reviewing your cell phone plan and requesting a policy review with your insurance agent. As long as you negotiate ethically and in the spirit of win-win, you can enjoy a lot of flexibility. Nothing is ever cast in stone.

Asking Strategy #7: Ask for Feedback

This is a powerful way to fine-tune your business that is often overlooked. How do you really know if your product or service is meeting your customers’ needs? Ask them, “How are we doing? What can we do to improve our service to you? Please share what you like or don’t like about our products.” Set up regular customer surveys that ask good questions and tough questions.

HOW TO ASK

Some people don’t enjoy the fruits of asking because they don’t ask effectively. If you use vague language you will not be clearly understood. Here are five ways to ensure that your asking gets results.

Ask Clearly
Be precise. Think clearly about your request. Take time to prepare. Use a note pad to pick words that have the greatest impact. Words are powerful, so choose them carefully.

Ask with Confidence
People who ask confidently get more than those who are hesitant and uncertain. When you’ve figured out what you want to ask for, do it with certainty, boldness and confidence.

Ask Consistently
Some people fold after making one timid request. They quit too soon. Keep asking until you find the answers. In prospecting there are usually four or five “no’s” before you get a “yes.” Top producers understand this. When you find a way to ask that works, keep on asking it.

Ask Creatively
In this age of global competition, your asking may get lost in the crowd, unheard by the decision-makers you hope to reach. There is a way around this. If you want someone’s attention, don’t ask the ordinary way. Use your creativity to dream up a high-impact presentation.

Ask Sincerely
When you really need help, people will respond. Sincerity means dropping the image facade and showing a willingness to be vulnerable. Tell it the way it is, lumps and all. Don’t worry if your presentation isn’t perfect; ask from your heart. Keep it simple and people will open up to you.

© 2008 Jack Canfield

* * *

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Jack Canfield, America’s #1 Success Coach, is the founder and co-creator of the billion-dollar book brand Chicken Soup for the Soul and a leading authority on Peak Performance and Life Success. If you’re ready to jump-start your life, make more money, and have more fun and joy in all that you do, get your FREE success tips from Jack Canfield now at: www.FreeSuccessStrategies.com

* * *

Terence Kierans CAVB (Certified Australian Virtual Business)
Principal, Cyberspace Virtual Services, Western Australia
www.virtualservices.com.auExperience the Difference
http://vacertified.com/client-info/First in the World to be VA Certified (and you can benefit)
www.avbn.com.auAustralian Virtual Business Network—You Deserve the Best
2007 Thomas Leonard International VA of Distinction Award Nominee
Contented Member of ‘A Clayton’s Secretary’

Use our skills to help you succeed
Tel: 61 8 9304 6983 Fax: 61 8 9304 3202 Mobile: 61 414 25 1091 UK Residents: 07092391723

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