THOUSANDS of small companies in Lancashire are being urged to take steps to identify hidden risks which threaten to destroy their businesses.

Diane Eatough, president of the North West Society of Chartered Accountants, warned: "There are many issues beyond the purely financial which could expose a business, such as social issues which could lead to charges of sexism or racism, or trading in politically sensitive areas".

The Institute of Chartered Accountants has drawn up a series of guidelines which companies will have to comply with by December next year. Diane Eatough stressed the importance of addressing the issue now in order to meet the deadline.

She said: "The very big firms have probably done enough already, but the very many smaller companies in Lancashire are going to have to address this very quickly."

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