All businesses face risks, and having solid risk management in place can help you protect your business in any event. Small businesses may find it harder to mitigate risk as they feel having good risk management costs money in the form of an employee or high-level consultant. Before jumping into hiring a risk manager here are the top 5 risks small businesses, like yours, may face.
Monetary risks are a large issue for almost all businesses. Considering cash flow, especially before starting a business, can help you truly understand where money will be coming from and how it will be divided to keep your business running. Operating on a lean budget may help your business survive any economic fluctuation.
Injury by employees or customers, damage to property, or any contract discrepancy may result in a lawsuit you are not ready to handle. Finding a trusted insurance agent who knows your industry will give you an upper hand when writing a robust insurance policy to cover such incidences.
Technology Security Risk
Sensitive data is a big risk in today's tech-forward world. Constant software updates, multi-factor authentication, data encryption, and data backup help protect against a breach. For extra protection consider cyber insurance which can cover a variety of expenses related to a breach.
One overlooked risk is reputation risk. Social media has shown the power of reputation. Have a clear policy on how to respond to negative feedback, especially online.
Regulatory Compliance Risk
Laws and regulations are always changing and staying up-to-date as a business owner is important. Non-compliance can mean big fines and penalties to your business.
As a trusted insurance provider and advocate for all things 'risk averse', we at Paris Kirwan take it upon ourselves to provide risk management consulting as part of being an insured client. We also value providing our customers with resources, like our blog, to allow for continuous learning.