Risk Management Simplified
1/23/2012 11:25:00 AM
For every business owner in CA, risk management should be something that is given serious thought. Small business owners may think this term sounds technical, as if it were something only applicable to larger companies. Simplifying the principles of risk management into layman’s terms may make it clearer.
You can compare some business risks to similar household situations. For example:
• Home: what would you do if all the shops you buy from were suddenly out of stock?
• Business: a supplier of a key element for your business is unable to supply you - what would be the effect?
• Home: your partner leaves you and takes most of your furniture.
• Business: a key member of staff leaves and sets up a rival company.
• Home: you leave a pot on the stove and your house burns to the ground. Where would you live?
• Business: a fire in a neighboring property causes damage to your building and it is deemed unusable. Where would you operate from while the premises were rebuilt?
• Home: your purchase online is compromised and someone steals your credit card details.
• Business: a breach of security sees your network hacked and vital information stolen.
These simple examples, comparing business risks against similar scenarios at home may have helped make the importance of CA risk management more obvious. Just as at home, one way to safeguard your business may be to take out insurance to help cover the financial loss that may result should these kinds of risks materialize.
*
You can compare some business risks to similar household situations. For example:
• Home: what would you do if all the shops you buy from were suddenly out of stock?
• Business: a supplier of a key element for your business is unable to supply you - what would be the effect?
• Home: your partner leaves you and takes most of your furniture.
• Business: a key member of staff leaves and sets up a rival company.
• Home: you leave a pot on the stove and your house burns to the ground. Where would you live?
• Business: a fire in a neighboring property causes damage to your building and it is deemed unusable. Where would you operate from while the premises were rebuilt?
• Home: your purchase online is compromised and someone steals your credit card details.
• Business: a breach of security sees your network hacked and vital information stolen.
These simple examples, comparing business risks against similar scenarios at home may have helped make the importance of CA risk management more obvious. Just as at home, one way to safeguard your business may be to take out insurance to help cover the financial loss that may result should these kinds of risks materialize.
*
