Are you managing risks in your small business? Have you done a thorough assessment of the potential risks your small business has? Do you have a risk management process in place to help you mitigate your risks? Small business owners typically do not understand or protect their business from the potential risks they have, and subsequently, suffer the consequences.
The first step in risk management is to identify the risks that you have. In small businesses some risks are common, while at the same time there are unique risks for a specific business. Assessing risks, such as business interruption, operations, personnel and liability losses will help a small business owner understand their risks.
Evaluating the probability that a specific risk will materialize will help you prioritize your time and focus to put together a mitigation plan for all of your top risks. Having contingency plans in place in case a risk emerges will help you to better manage the situation.
Having insurance to mitigate certain risks, like theft, fires, or accidents, is always a prudent step to managing risks. Adopting an enterprise-wide risk management program will also help ensure that you have plans in place for the top risks in your small business.
Continuously monitoring risks and the impact they may have to your small business will help you better manage risks in your small business.