1. Don't put all of your eggs in one basket
Regardless of the size of your company, it’s always a good idea to spread your risks. Being dependent on a single supplier is a huge risk: if your supplier lets you down, there’s no plan B to fall back on. Multiple suppliers, on the other hand, also means multiple options in case of emergency.
2. Check and double-check
Plan frequent audit moments to evaluate the functioning of your company. Where are the weak spots? Where does an employee have more influence on the production process than necessary? In which areas is the company susceptible to outside influences? Mapping out these vulnerable factors quickly reveals where risks can be avoided.
3. Read the papers
By definition, foreign branches, customers or suppliers are a bigger risk, not only because they are harder to control but also because the consequences of any problems take longer to reach you. An international network or international partner can help in this regard: they will inform you of international changes before it is too late.
4. Buy a watch
What is even riskier than innovating and modernising? Not innovating and modernising. It is crucial to commit to progress at the right time. Take Elon Musk, who has silenced the critics by making $21 billion a year selling Teslas. Or Amazon’s Jeff Bezos who, contrary to many of his contemporaries, did believe in the digital future and fully committed to it.
5. Take a close look at your customers and suppliers
“How financially stable are your customers?” should be a routine question but in reality we rarely ask ourselves this. Every supplier has a direct impact on the quality of your products or services. Setting high standards in terms of business contacts is therefore not an unnecessary luxury but a prerequisite to a successful collaboration. Test the financial health of 3 prospects/clients for free.
6. Once bitten, twice shy
Mistakes are part of the process, the main thing is to learn from them. Examine your risk analysis and risk policy closely after every incident. Could the incident have been avoided? How will this affect the way in which your company will do business in the future? Clearly identifying where things went wrong severely reduces the odds of a repeat in the future.
7. Look for a partner
Avoiding risks is not something you do alone. Go in search of an insurance partner who can protect your company by limiting the biggest risks. With Euler Hermes trade credit insurance you can kill two birds with one stone: we make sure your company doesn’t come under threat by unnecessary risks while you focus on that in which you excel: doing business. With Euler Hermes trade credit insurance you can look to the future with confidence. Just like Elon Musk and Jeff Bezos.