Risk Reduction Consultant Business Idea
The decision to become a risk reduction consultant can lead to an exciting and lucrative small business opportunity. Risk reduction consultants assist businesses in identifying and reducing risks within various business operations. Assessing risk and developing strategies is essential as companies invest, promote new products, manage company growth, deal with compliance regulations, and handle product quality and recall issues. Business involves risk. It is the job of the risk reduction consultant to foresee potential pitfalls, minimize or avoid them, and advise clients on ways to deal with risk when the unfortunate happens.
How to Become a Risk Reduction Consultant
Your decision to become a risk reduction consultant is likely based on your background as a business professional. Consider the following questions:
- Will you specialize in precise areas of risk management?
- Will you target certain industries?
- What areas of expertise do you currently bring to the table?
- Are there gaps in your skills or experience that require additional education and training?
A risk reduction expert’s primary responsibilities include:
- Meeting with clients to assess and develop risk management strategies
- Conducting client industry research and analyzing data
- Assessing the internal business practices of each client
- Developing, recommending, and introducing guidelines to reduce threats
A risk management consultant must also:
- Network with business professionals to increase exposure to prospective clients
- Advertise their risk management consulting services
- Research current events and business news, particularly information that impacts the local or national business climate
- Stay on top of new regulations and policies that may be relevant to clients
- Take care of administrative tasks, such as billing, invoicing and receipts, and internal reports
Getting Started as a Risk Reduction Consultant
It’s true that accomplished risk reduction experts command high fees. The most qualified risk reduction consultants have an extensive skill set and years of experience behind them. Many have advanced business degrees and experience as corporate executives. If necessary, brush up on your business and analytical skills by taking classes. Many local schools and various online programs are available to adult learners. The most successful risk reduction consultants know the business world inside and out.
Any corporation, unless it has a risk manager on staff, is a potential client. Joining and participating in local business organizations, such as the Chamber of Commerce, introduces you and your services to local executives and business owners. Targeting specific industries by placing effective print ads in trade and industry journals is another way to gain visibility and find customers.
Your Consulting Keys to Success
When you become a risk reduction consultant, business acumen is crucial. There are additional factors that are required in order to become successful, however. These include:
- Excellent communication skills: As you assess each client’s risk profile, you interview and work with everyone from company president to the worker who unloads the delivery trucks. The ability to communicate with all types of people is essential as you analyze company procedures.
- Guarantee confidentiality: Corporate executives are understandably cautious when hiring consultants. As a consultant, you gain access to inside knowledge about company products, procedures, and internal workings. Falling into the hands of a competitor, this inside knowledge could spell disaster for your client. Guaranteeing confidentiality helps inspire confidence.
- Stay in touch with past clients: Look at each satisfied client as a returning customer. Industry standards, laws, consumer markets, and competition all change, sometimes at a frenetic pace. Contact former clients periodically to keep your name on their minds.
- Excel: You were hired as a risk management consultant because you are an expert. Company executives expect risk protection when they hire you. Your reputation depends on your expert performance. Excel at every level.
- Engage in ongoing education: Stay on top of industry news, learn new techniques, and refine your own procedures to improve and enhance your skills. The more efficient and on target your services are, the more “expert” you become in the eyes of your clients.
Expanding Your Risk Management Consulting Services
To become a risk reduction consultant means providing expert, professional services to protect the financial welfare of client companies and physical safety for employees. After building a portfolio of successful assessments and satisfied clients, bring in additional revenue by expanding your services. Expansion ideas include:
- Conduct risk management training courses that target small business owners who might not hire you otherwise
- Branch out into other industry groups
- Publish a risk management newsletter or start an informational blog