Don’t let risks sneak up on you
Within the business world, the global sweep of Covid-19 caused a great revelation; small businesses are extremely vulnerable. We saw the permanent closure of hundreds of thousands of businesses in the United States alone. A global pandemic was not foreseen by most business owners and there was no avoiding the closures, it was an abrupt occurrence that deeply hurt American businesses. But unforeseen damage is not rare in business. Businesses face risks everyday; technology errors, staff shortages, supply problems, weather damage. Everyday risks can cause immense problems. But, with proper planning, business owners can be equipped to prevent and mitigate these damages.
Risk management is essential to a healthy business. Without it, your business is vulnerable to incidents and their effects grow more drastic. Risk management requires identification, evaluation, and measurement. You need to be able to identify risks and understand what they could mean for your business. Once you know this, you’ll be able to safeguard your business against them.
Some ways to safeguard your business:
Have a business continuity plan. Your business continuity plan should be a part of your operations manual and should cover steps for potential short and long term situations. For example, a continuity plan can cover how to use a generator if the power goes out, manually taking payments if online systems fail, or even potential secondary locations if yours is unusable.
Purchase insurance. Speak to an insurance agent to find out more about what risks your business faces and what assets you can protect with insurance. A good insurance plan is a great way to protect your finances from unwanted risks.
Share your worries with your employees. Sharing responsibilities with employees will allow more people to care for your business. If you’ve identified risks such as faulty equipment, theft, or building problems, share your concern with your employees. Sharing the responsibility will allow for more eyes to identify and deal with risks.
These tips can help you prevent emergencies and keep your business stable. Want to know more about risk management and how you can protect your business? On February 21st and 22nd, Universal Processing is presenting a free webinar on risk management for small businesses. Come hear industry experts lead an official FDIC/SBA course specifically designed to help small businesses succeed. Sign up for either our English session on February 21st or our Chinese session on February 22nd. Stop by and let us help you protect your business!
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