Quiz: Are You Managing Business Risk Effectively?

Quiz: Are You Managing Business Risk Effectively?

Every business faces risks. Some are obvious, like a key supplier going bust or a fire damaging your premises. Others creep up slowly: a gradual skills drain, outdated technology, or data that has not been backed up properly in months.

This short quiz helps you take stock of how well your organisation handles common business risks. Work through each question and note your answers. At the end, you can calculate a score that gives you a rough sense of where you stand and where there may be gaps worth addressing.

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The Questions

1. Do you have a risk register?

• A. I am not sure what that is
• B. Yes, but it has not been updated recently
• C. Yes, and it is kept up to date
• D. Yes, it is current, reviewed regularly, and we have taken action to reduce or manage the risks listed

2. How is your business critical data backed up?

• A. It is not backed up
• B. Backups are stored on the same site as the original data
• C. Backups are sent to a different location
• D. We have a clear backup plan with copies held in multiple offsite locations, and we have tested that we can actually restore the data if needed

3. How do you manage key skills in your organisation?

• A. Someone else deals with training and skills, so I am not closely involved
• B. We try to make sure at least two people can cover each critical skill, in case one leaves
• C. Key skills have been identified and documented, and we factor them into training and succession planning
• D. We have a formal skills matrix, regular training reviews, and clear succession plans for all key roles

4. What would happen if your main supplier could no longer deliver?

• A. We would be in serious trouble and would need to find alternatives quickly
• B. We have a rough idea of other suppliers we could try
• C. We have identified backup suppliers and have made initial contact
• D. We have formal agreements or relationships with alternative suppliers, tested periodically

5. How do you handle insurance and liability cover?

• A. I am not sure what cover we have or whether it is adequate
• B. We have some insurance but have not reviewed it recently
• C. We review our cover annually to check it still meets our needs
• D. We work with a broker or adviser to review cover regularly, and we understand exactly what is and is not included

6. Do you have a plan for business continuity if something goes seriously wrong?

• A. No written plan exists
• B. We have a rough idea of what we would do but nothing formal
• C. We have a written plan, though it has not been tested
• D. We have a documented business continuity plan that is reviewed and tested at least once a year

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

How to Score Your Answers

For each question, give yourself points as follows:

• A: 0 points
• B: 1 point
• C: 2 points
• D: 3 points

Add up your total. The maximum score is 18.

0 to 6 points: There may be significant gaps in how your business identifies and manages risk. It would be worth reviewing the basics, starting with a simple risk register and backup procedures.

7 to 12 points: You have some risk management in place, but there are likely areas that need attention. Consider which questions scored lowest and focus on those first.

13 to 18 points: Based on these six questions, your organisation seems to have reasonable risk management foundations. But this quiz only covers a handful of areas. Technological risks, regulatory requirements, and supply chain pressures all shift over time, so what works today may need revisiting in six months.

What to Do Next

A quiz like this cannot cover every risk your business might face. It is a starting point, not a full audit. The specific risks that matter most will depend on your sector, size, and circumstances.

If you scored lower than you expected, there is no need to panic. Many smaller businesses operate without formal risk management for years. However, putting even basic measures in place can reduce the chance of a minor problem turning into a serious one.

A risk register does not need to be complicated. A simple spreadsheet listing potential risks, their likelihood, their possible impact, and what you are doing about them is often enough. For businesses wanting a more structured approach, ISO 31000 provides an international framework for risk management that many UK organisations follow. Review your register every few months and update it when things change.

For data backups, the key is not just having copies but knowing you can restore them. Untested backups have a habit of failing when you need them most. The National Cyber Security Centre offers practical guidance on backup strategies, with a particular focus on protecting against ransomware and other cyber threats. Given that cyber attacks on UK businesses continue to rise, this guidance is worth reading even if your backups seem adequate. You should also consider how the UK Data Protection Act 2018 affects your backup and data handling practices.

Skills and succession planning can feel awkward to discuss, especially in small teams. But if only one person knows how to do something critical, that is a risk worth acknowledging. Cross training and documentation can help.

Business continuity planning guidance is available from GOV.UK, which provides templates and advice suited to UK businesses. The Health and Safety Executive also offers resources on workplace risk management and compliance. Trade bodies and professional associations in your sector may have additional materials tailored to the risks you are most likely to encounter.

Risk management is not about eliminating every possible threat. That is rarely practical. It is about knowing what could go wrong, deciding which risks matter most, and having a reasonable plan for dealing with them if they do.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Difficult Conversation Planner lets you plan a tricky conversation with someone in your team, from underperformance to conduct or a sensitive issue, so you go in clear, fair and prepared. Try it now →