Often in our planning we forget to look at what might happen in favor what we want to happen. As we consider our goals for the coming year give some thought to what might upset your best laid plans.
What internal and external threats could disrupt your mission?
Internal risks could include unplanned expenses, disruptions in revenue, inadequate reserves, or IT crashes, internal fraud or theft, inadequate insurance coverage, hacking, or reputation risk.
External issues could be how to operate if there is a natural disaster, economic downturn, or regulation changes.
Identify the risks, measure the possible impact of each, determine the probability of the occurrence of the risk, then prepare a plan to mitigate those with the highest potential to damage your organization.
These should be then incorporated as part of your overall plan tied together with your contingency plan.
Continue to review and update your assumptions during the year. As the Boy Scouts say: “Be Prepared”.
Author: David Blankenhorn, Executive Coaches of Orange County, www.ECofOC.org