VisitEngland

C: Risks and opportunities

While there are plenty of risks associated with climate change, resource depletion and supply volatility, there are also plenty of opportunities. This is not just blind optimism. It's about finding new ways of working as the economic reality evolves.

Key Takeaways for Risks

In a nutshell

  • Think about the different types of risks your business is facing.

  • Don’t get overwhelmed by the negative. Think about how it can be compensated for by finding new opportunities.

Carney Quote

The transition to net zero is creating the greatest commercial opportunity of our age.
Mark Carney, UN Special Envoy on Climate Action and Finance

Recognising risk

Before hunting for opportunities, we should start by fully understanding the risks. 

It is important to recognise potential risks to your operations, so you can prepare appropriately and transform your business in the right direction. 

Companies that are slow to change tend to be those left behind, but that doesn’t have to be you. To build resilience and long-term value, it pays to conduct both a risks and an opportunities analysis on your business.

By continuing business as normal, what are your risks? Every business is different, as will be the specific risks your business may face. Review this checklist to identify your possible risks.

  • COMMERCIAL

    • Losing customers. 
    • Losing corporate business. 
    • Future legislation. 
    • Attracting investment.
    • Inability to sell your business.
    • Energy price fluctuation/increase.

    REPUTATIONAL

    • Being seen as a bad business. 
    • Unforeseen customer backlash. 
    • Greenwashing accusations.

    STRUCTURAL

    • Direct weather implications to property and other assets. 
    • Indirect weather implications to property and other assets. 
    • Destination implications.

    ORGANISATIONAL

    • Ability to attract talent/suitable talent. 
    • Supply chain disruption.

    MORAL

    • Dealing with ethical dilemmas. 
    • Considering future generations. 
    • ‘Doing the right thing’.
    • Long-term v. short-term thinking.

Risks Pressure Points

Once you have established which risks may impact your move to regenerative tourism, it can help to establish specific pressure points. Try answering these questions on a scale of 1-10, with 10 being high.

  • Questions

    Rating

    How important is our sustainability approach to our leisure customers?⬜
    How important is our sustainability approach to our corporate customers?⬜
    How important is our sustainability approach to attracting and retaining good employees?⬜
    If we need investment, how important will our sustainability approach be to securing it?⬜
    To what extent is legislation likely to affect our business sector?⬜
    If we are looking to sell the business in the future, how important might our sustainability credentials be?⬜
    How vulnerable are we to changing weather patterns and extreme weather events?⬜
    How exposed are we to costs we cannot influence, such as energy prices?⬜
    How likely are we to face any reputational problems that could jeopardise the business?⬜

Looking for opportunities

Now for the positive.  Having reviewed the risks, it is motivating to also review potential opportunities. 

Try filling in a tick box like this to identify what you can gain from adopting a more sustainable and regenerative approach to your business.

  • Competitive advantage

    • Known as the best and most sustainable in our local area. 
    • Have something unique that no competitor has.

    Happy customers

    • A regular flow of new ‘conscious’ customers. 
    • Excellent retention levels.
    • High levels of customer referrals.

    Attracting and retaining the best employees

    • A good track record of attracting bright, dedicated talent. 
    • A motivated and loyal employee base, led by purpose. 
    • High employee satisfaction and retention.

    Great PR and marketing

    • A thoughtful and purpose-led marketing approach.
    • A clear sustainability strategy that shows your commitment to having a positive impact.
    • Engaging customer communications.

    Reduced costs (by removing inefficiencies) 

    • An intelligent approach to energy efficiency.
    • An intelligent approach to water efficiency.
    • An intelligent approach to responsible purchasing.

    Healthy supply chain

    • Reliable supply chain and partners. 
    • High-quality, like-minded, suppliers.
    • Deeper understanding of where supplies are sourced from.

    Futureproofing

    • Planned and built-in resilience systems.
    • A risk mitigation plan to limit impacts on the business. 
    • A long-term and morally sound business plan.