Archive for November, 2010

Risk assessing your business plans

Given the level of complexity in the business environment today, businesses need greater flexibility in planning and implementing their business strategies.  Business planning processes should consider various detailed scenarios in the business environment such as – competitor’s moves, shifts in customer’s needs, government regulations, technology changes etc.

Best prepared companies risk assess their business plans and strategies to see how their business will cope with the likely scenarios as they emerge.

Here are a few things to consider as you risk assess your business plan for 2011 and beyond:

  1. A Risk Assessment exercise performed as part of your strategic planning exercise is most effective, rather than as a separate project.
  2. Involve your top management team to visualize various scenarios likely to play out in the economy,  within your industry and markets.
  3. Identify as best possible, the likelihood of these various scenarios occurring and their likely impact on your business plan – for e.g. how will  increased regulatory scrutiny, rising healthcare costs impact your company?
  4. Be prepared with alternative  strategies and plans based on the more likely scenarios that you and your team have identified.
  5. While maintaining higher levels of preparedness for the most likely events, identify contingency plans for less likely but high impact events.
  6. Gather intelligence from industry sources, customers, and suppliers to identify emerging developments.
  7. Identify milestones to track progress against the plan regularly making course corrections as necessary. 

November 3, 2010 at 8:30 pm 1 comment

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