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Recently, I watched the 1980’s hit Risky Business for the first time. Except for the iconic scene with Tom Cruise sliding across the floor in his socks singing Bob Seger’s Old Time Rock ‘n Roll, I wasn’t a fan.

But the movie got me thinking about business, strategy, and risk. (Scary, huh?)

Strategy, at its core, involves making decisions in the face of uncertainty. It’s defining what you will and won’t do, testing hypotheses, prioritizing, following through, and correcting course, as needed.

Uncertainty brings risk. And opportunity and risk are two sides of the same coin.

After all – No risk. No return.

As small businesses scale and grow, one thing remains constant. Change. From infrastructure to processes, people, systems, and more. Having a clear risk picture and proactively managing change is key.

Numerous frameworks exist, and none is perfect. Pick one, norm on terminology, and follow through.

Here are 5 straightforward strategies you can start using today –

1. Establish – Often overlooked, it’s important to establish your strategic context and ensure your strategy, priorities, and goals align with your risk philosophy and risk appetite.
2. Identify – Create a Risk Universe to identify and categorize risks. Examples include: Strategic – A new competitor, shift in addressable market, a global pandemic; Operational – Talent, R&D, failed technology; Compliance/Legal – Regulatory, privacy; Financial – Access to capital, cash flow
3. Assess – Develop a Risk Register to assess the severity of each risk based on likelihood & impact. A simple High, Medium, and Low methodology works.
4. Control – Determine how you will respond to, or control, each risk. Will you mitigate, transfer, avoid, or accept?
5. Monitor & Report – Monitor progress and report regularly using a consistent dashboard, incorporating lessons learned. Then head back to Number 1.

So, what does it look like for your business?

• What are your risk philosophy and risk appetite?
• How are you identifying, assessing, and controlling risks?
• What does your risk dashboard look like?
• What is one thing you can do today to drive greater clarity?

I help small technology & professional services businesses scale & grow.

This means leaders work ON the business instead of IN the business. Whether it’s a 10-year vision, 3-year strategy, or 90-day action plan - we partner to achieve your goals.

If you want to break through to the next level in your business, drop me a message, and we’ll arrange a 15-min call to see if I can help.

To your success,

~Susan

P.S. - When you’re ready, here are 2 ways we can work together.

1. ​Follow or connect on LinkedIn​
2. Just reply and let me know how I can help you or a friend

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