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Assessing your Business Risk

Man's hand pulling out a wooden block showing business risk

Every business, regardless of what industry it’s in, is going to be associated with some type of risk – that’s just the nature of the business world. Businesses that proactively consider what events are likely to occur based on their industry, geographical locations, and relative business size are better positioned to recover from potentially disastrous events than those who choose not to asses their business risk.

Assessing Business Risk

When thinking about business risk, it’s not unusual for business owners to think about natural disasters. After all, it does seem as though they are occurring more and more frequently throughout the United States. However, many business losses are actually caused by events that are not as wide-spread.

Things to consider when assessing your business risk:

Geography

Where your business is located plays a huge role in the level of business risk you have. If you live in a region that is prone to hurricanes, tornadoes, or even flooding, you have a high business risk.

History

Is there anything that has significantly impacted the community, facility, or neighborhood that your business is located in in the past? History tends to repeat itself, and it’s better to be safe than sorry.

Organization Structure

Does your employee, operational, or technological infrastructure make your business susceptible to certain events? Maybe you’re an IT business that has an increased cyber liability risk, or you’re a hospital that has a high risk associated with employment practices.

Regulation

Does your business or industry require/mandate any additional preparation for potential hazard? The more precaution your business has to take for potential hazardous events, such as nuclear waste or chemical manufacturers, the higher your business risk will be.

Understanding the threats that face your business and the potential impact they could have on business operations is the first step in developing a realistic and reliable business continuity plan. At Snellings Walters, we help you better understand your business risk through careful assessment. To get started, reach out to us here or call us at 770-637-1727.