13 April 2015 by Joe Ogden
Risk management is about planning for when things go wrong. Hopefully nothing ever does go wrong, but in business you can’t afford to cross your fingers and look on the bright side: fires, break-ins and other calamitous events can and do happen. So where does temporary warehousing fit into a risk management strategy?
Developing a Contingency Plan
The main reason why risk management planning is so important is that having a contingency plan in place will minimise the effect of a disastrous event and allow normal business to resume as soon as possible. Insurance policies are there to provide financial compensation, but a business still needs to continue trading and a detailed risk management plan is essential.
Plan for the Unexpected
The whole point of a risk management plan is that you try and cover every possible thing that could go wrong and formulate a way of dealing with it. For example, if your warehouse was destroyed by an arson attack, you would need to find replacement premises as soon as possible or face losing a significant amount of business.
Temporary warehousing facilities could be part of your risk management strategy. Insurance money would pay for new stock and a temporary warehouse could be established until a more permanent facility can be constructed.
Nobody likes to think the worst might happen, but being prepared means you can lessen the impact of a disaster if the worst does happen. The better prepared your business is, the faster you will be able to get back to ‘business as usual’.