What happens to your business the day something goes wrong
Picture this. Two directors build a business together for years. It grows fast, wins clients, starts turning a proper profit. Then one of them passes away suddenly. Within months, the company has folded, not because the idea stopped working, but because nobody had planned for the risk. It’s a true story, and it’s exactly the kind of scenario that makes business risk management feel less like an abstract concept and more like something every owner in Mole Valley should be thinking about today.
That story was shared by Derek Mckechnie of Monro Financial Management at our July networking breakfast, held al fresco at The Watermill in Dorking on a glorious summer morning, with the Surrey Hills and Box Hill providing a rather stunning backdrop. It was one of those mornings that reminded everyone why Surrey business networking works so well in person. Good coffee, good company, and a talk that clearly struck a nerve with the room.
What’s happening
Derek’s talk centred on a simple but often overlooked truth: every stage of a business’s life brings its own risks, and most owners only start thinking about business risk management once something has already gone wrong. Starting up, growing, and eventually planning an exit all carry different exposures, from the death or serious illness of a founder to shareholder disputes, staff retention, and basic business continuity.
He posed the question that underpins good planning: what are we actually protecting? Is it the business itself, the founders and their families, cash flow and profit, or the customers who rely on the business being there tomorrow? For most owners, the honest answer is all of the above, which is exactly why business risk management needs to be approached holistically rather than as a single insurance policy ticked off a list.
Why it matters to local businesses
The story of the two directors is a stark illustration of what can go wrong without proper planning. When one director died during the pandemic, the shareholder agreement wasn’t clear and there was no shareholder protection in place. The shares passed to family members who ended up in dispute over money, and a fast growing, genuinely successful business went under as a result. Not because of the market, not because of competition, but because of a gap in planning that could have been closed years earlier.
For Mole Valley’s mix of hospitality, professional services, retail, and corporate members, the lesson applies just as much to a five person consultancy as it does to a larger employer. If you or a co-director were to become seriously ill or pass away, would the business survive? Would your family actually want to inherit your share of it? Would your team know who holds the keys to your systems and data? These are the practical, sometimes uncomfortable questions that sit at the heart of business risk management. SME failure rates linked to poor continuity planning are well documented by the Federation of Small Businesses.
Advice and opportunities
Derek outlined several tools that can help close these gaps, and they are worth every Chamber member reviewing against their own situation.
Key person insurance protects the business financially if someone critical to its success dies or falls seriously ill. The payout goes to the business, not the individual, giving the company breathing room to hire an interim or simply keep trading while it finds its feet again.
Shareholder protection insurance and clear shareholder agreements work together to prevent exactly the scenario described above. A crossover agreement allows co-owners to insure each other, so if one shareholder dies, the others can buy the shares at an agreed value. The family receives fair payment, and the remaining owners retain control, meaning the business continues rather than becoming a source of conflict.
Employee benefits, from medical insurance to lower cost cash plans covering things like physiotherapy or prescriptions, do more than support recruitment. They help with retention and demonstrate to staff that they are genuinely valued, which in turn supports business continuity when things get difficult.
Business continuity planning, including knowing who holds passwords, contracts, and key documents, is something Derek’s own FCA regulated firm is required to maintain in detail. It is advice worth borrowing even if you are not in a regulated industry. Losing a key person without a clear record of where everything is stored can be as damaging as losing the person themselves.
Share options for employees were another point raised. Giving trusted staff a stake in the business increases the likelihood that someone capable is ready to step in and keep things running if an owner is suddenly unable to.
Member examples
Derek has spent over 35 years in financial services and 20 years as a business owner himself, which gave the talk a grounded, practical edge rather than a purely theoretical one. His point throughout was straightforward. Business risk management isn’t about assuming the worst will happen. It’s about making sure that if it does, the people you care about and the business you’ve built are not left exposed.
A next step for your business
If Derek’s talk raised questions about your own arrangements, whether that’s a shareholder agreement gathering dust, a key person policy you’ve never reviewed, or simply not knowing where your business critical information is stored, it’s worth a conversation sooner rather than later. Get in touch with the Chamber at marketing@molevalleychamber.co.uk and we can point you towards Derek and other members who specialise in exactly this kind of planning. And if you missed the breakfast, keep an eye on our events page for the next networking morning. Mornings like this one at The Watermill are a reminder of what Surrey business networking does best: bringing useful advice and good company together in one place.
Not yet a member? Join the Chamber to connect with specialists like Derek across our network.
This article was produced by the Mole Valley Chamber of Commerce following our Business Breakfast event on 15 July 2026. To join the Chamber and access future events, networking opportunities, and business support, visit our website or contact us here.
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