Are you the kind of leader who relies on gut instinct and has a confidence that risk equals reward? This is a strategy that sometimes pays off but there are precautions you can take to ensure all your hard work isn’t undone. Here, Euler Hermes experts give their advice for minimising your risks…
When you’re an SME owner, the challenge is always to balance risk against reward. There are those who may be over-diligent and fail to take that leap of faith, while there are many entrepreneurs who chase opportunities without considering the potential pitfalls.
Going for growth is a positive way to run a business, but experienced leaders will always tell you that it pays to keep an eye on the aspects of your organisation that could go wrong.
Paul Anderson, assistant head of risk underwriting at Euler Hermes, the world’s leading provider of trade credit insurance and a company of Allianz, argues that failing to plan for a shock is common among businesses that have seen success in the past: “It’s a mistake to assume ongoing success,” he explains. “Just because you have done okay in the past doesn’t guarantee it will continue to be so in future. For example, the bigger you get, the more you will appear on competitors’ radar, which is a risk in itself.”