As we all know, the whole risk management field is a huge industry.
However, today’s post is going to take a look at a slightly different area of risk. Because they aren’t backed by a huge amount of resources, small businesses are one group who tend to be at risk each and every day they are in operation.
Through today’s article we will now take a look at some of these risks in-detail to show just how you can mitigate them somewhat.
The cyber risks
It wasn’t too many years ago that cyber security wasn’t even a thing. Now, it’s huge, and the fact that some companies, like the investment firm C5 Capital, started by Andre Pienaar, specifically invest in cyber security businesses says everything you need to know about the scale of it.
In a flash, a business can be infiltrated and have its data exposed to the general public. It has happened time and time again and unless you take adequate precautions, it can happen to you.
So, what constitutes adequate precaution? Simply educating your employees on the perils of phishing and viruses can be an easy win, using data rooms, but other suggestions involve banning the Bring Your Own Device initiatives and ensuring that all company devices are patched regularly. By doing this, you can at least be sure that any potential cyber criminals will have to bypass the latest security to breach your defences.
The dreaded cash flow conundrum
It’s no secret; cash flow is one of the biggest enemies of a small business.
As it turns out, getting others to pay their bills is more difficult than it might seem. While you may have felt that you have won the main battle by gaining customers in the first place, it’s only when they are paying on time when your business can be classed as a success.
If they don’t, all sorts of cash flow issues can occur. Over time, these can build up, and in some cases completely wipe a business out. Make sure that you have strict payment policies to prevent this happening.
The reputational risks
It would be fair to say that a company’s reputation can be affected in umpteen ways nowadays. It can just take one disgruntled customer for a company’s reputation to end in tatters, with the internet generally fuelling this.
As a result, it’s crucial to manage your reputation from both an online and offline perspective. Ensure that any negative press is dealt with efficiently; and always remember that through the internet, potential customers will now be able to see all types of feedback before they spend their money with you.
The employee risks
In truth, no employee should be bigger than a business, but in organizations of the small variety it would be fair to say that some people have a huge influence on how things are run. They may have been there for years, and this means that if they do need replacing at some stage, this can be a difficult period of transition.
So, how do you mitigate this? Well, looking after your employees is one option, and perhaps offering them all of the benefits that are now almost expected in the workplace.
Another solution is to try and build processes. While there will always be transitional periods if a member of staff leaves, if processes exist it at least means that new employees will find it easier to slot in.