Do you know which risks threaten your small business the most? To protect your business, you must first understand which risks threaten your business, employees and customers. It is better to put plans in place before a disaster than after. To assess risks, ask yourself:
- What business am I in? Remember, risk can exist in any area of the business; sales, marketing, legal, funding, transportation etc.
- How much risk can my business take?
- What impact could any risk have on my business?
- What can I do to prevent or minimize disruption to my business?
- How will I deal with the impact of these risks?
All these questions must be in mind as it will help to form your recovery plan. You should set stages of recovery, i.e. low, medium or high to prevent losses in the event of a threat or the actual risk. These preset stages should determine how much risk you should endure at each stage and money you will dedicate to offset these risks. i.e.
- How big is the threat of a risk occurring (low, medium or high) and how much of the business operation will be affected?
- How long will the threat last?
- What will be the effect of this threat on the business?
- How will you manage the threat?
It is always best to minimize disruptions via insurance or put plans in place where possible. Connect now to learn ways to reduce risks and follow on Twitter.
