By its very nature, running a roofing business comes with risk. Especially with the spread of COVID-19, there’s no shortage of potential hazards that may impact your business. No matter how large or small your roofing business is, you’re facing multiple types of risk at all times, including financial, operational, strategic, organizational, workforce, safety, and reputational risk.
Identifying Internal and External Risks
The process of performing a roofing business risk assessment includes identifying internal and external risks that may be detrimental to your business operations and implementing a risk management strategy that seeks to mitigate these risks as much as possible. To help you better understand the types of risks that a roofing business consultant will help you account for in your risk management strategy, we’d like to cover the two overarching types of risk: internal and external risks.
Internal Risks
Internal risks are any risk factors within your roofing business that arise during normal business operations. You have a better chance of identifying and mitigating risks of this type because they can be more easily predicted. Some examples of internal risks include the following:
Ineffective management
Outdated operating systems
Inadequate organizational structure
Decreased production
External Risks
On the other hand, external risks are any risk factors that threaten your roofing business from the outside. These risks cannot be predicted with a high level of reliability or controlled by your business. Some examples of external risks include the following:
Economic downturn
Increased interest rates
Natural disasters
Industry disruption
Hire a Roofing Business Consultant
When it comes to accounting for risk in your business management strategy, your best bet is going to be hiring a business consultant for roofers who can closely track potential risks, ensure strategic resources are in place to mitigate these risks and help you make an informed decision if and when these risks come to fruition. It’s also worth noting that risk assessment and management only scratches the surface of services provided by Cotney Consulting Group. We can also assess the health of your roofing business, optimize your organization, analyze corporate transactions for areas of improvement, perform a revenue analysis, and so much more. To learn more, connect with us today.