Making clear plans for the business will minimise the risk of unexpected incidents, and incidents that occur due to unexpected consequences or by allowing ourselves to drift into situations that result in unacceptable outcomes. Good planning also gives us a means of measuring process and ensuring that we remain on track.

For example, when we undertake a process of change in a business, it could be easy to drift into working with unacceptable risks, without a clear plan of what the risks are, how we want the change to occur and how it will be managed. A project plan for the change process allows us to ensure that we do not create additional risks by missing important stages or starting to lose direction.

Planning is important for projects; it is also important for avoiding both business and financial risks. Business plans provide a clear view of how a business will operate over a period of three to five years. This should take into consideration potential changes to the business environment, expected income and expenditure, as well as the need for changes to be made for the future.

Businesses that do not have a business plan risk declining profits and redundancies. When the environment changes, they may react rather than respond and do so too late to make an effective response. For example, a pharmacy that does not take into consideration plans to build a new supermarket pharmacy close by might continue to work in the same way they have always done.

They are likely to see their dispensing items and OTC sales decline over time and their profits will fall. When they then do choose to do something about the situation, and review their defence strategy, it will probably take them some time to return to their previous level of profit. Planning regular reviews is also important.

Undertaking planned health and safety inspections, regular reviews of SOPs and regular business reviews will help you identify and pre-empt potential risks in the future.