What kind of a person are you? Are you naturally cautious, sensing threats around every corner and constantly preparing yourself for the worst, or are you essentially carefree, living life as an impulsive go-getter and making decisions instinctively and on the spur of the moment?

In business, it is important to both guard yourself against potential misfortune and know instinctively when to take a risk, if the rewards are great enough. Here, Gener8 takes a look at the key factors that make up business risk assessment, and how you should approach them.

Insurance – Essentially, insurance is little more than a glorified form of gambling. Insurers work out the odds of an eventuality occurring, and based on their calculations, work out a policy that is unique to your circumstances. Don’t be tempted to take that gamble however; insurance is there for a reason, and you would be prudent to ensure that your business has the most comprehensive coverage possible. By failing to provide adequate insurance, you could not only find yourself in financial difficulty, but in considerable legal trouble too…

Recruiting – Bringing in new staff is an area where your intrinsic ability to read people and calculate risks will come to the fore. Some employers only like to hire staff with a great deal of experience – while these people are more often reliable than not, they come at a premium. Hiring relatively inexperienced but eager and skilful younger staff members is more of a risk, but one that can really pay off in the long run. Think of Manchester United manager Sir Alex Ferguson’s policy of recruiting players in their teens or early 20s and you can see how effective this model can be…

Safety – Safety is an area where conservatism should be actively encouraged. Some people, particularly those who traditionally have things all their own way, can fall into the trap of believing that they’re untouchable. With your business premises, your industrial processes, delivery procedures and working practices, you should take every care to be as safety-conscious as possible. Prepare yourself and your business for every eventuality and you should never have to deal with safety risks at all.

Expansion – Traditionally a high-risk time for businesses, growth can reap dizzying rewards but also means sticking your head above the parapet and opening up your business to failure. Attracting more clients means the potential for more profits, but you could find your business overstretched if your clients aren’t punctual with their payments or your invoices are subject to longer payment terms. Not to worry though, as our invoice factoring service provide you with the funds you need to pay your wages until your clients cough up, and if you haven’t got the time to chase them up, our credit management services can do that for you, too. Keep your chin up – we’ve got you covered!