Having a risk management strategy is important to your business’ success. Businesses should constantly be asking themselves how they’re protecting themselves, their data, their employees, and their customers.
While it would be impossible to plan ahead for every curve ball thrown at your business, don’t think of managing your risks as a chore where you have to analyze risks and threats every second. Think of this as an opportunity to protect your business now and in the long run.
Here are ideas on how you can manage your Business Risk effectively:
- Create a plan – Creating and implementing general strategies and action plans for possible risks will put you on track to managing your business risk effectively.
Risk: Employee Violates NonDisclosure Agreement
Step 1: Assess impact of employee action
Step 2: Consult legal team or advisor
Step 3: Assess impact of potential business actions externally and internally
Step 4: Take action against employee – Write Up, Terminate, Lawsuit Damages, Criminal Charges, etc.
- Establish different levels of Risk – You can create different levels of risks and have a plan for each. For example, level 1 risks might be analyzing potential vendor relationships, and level 4 risks might be a full blown data breach and business fraud. General strategies will keep your business ready for most scenarios.
- Improve your Data/Internet Security – The number of businesses affected by cyber crimes is shocking, and we encourage all small businesses to install and implement tools to protect their data. Check out these great tools and educational courses from the SBA to improve your data security.
- Monitor your Business Credit – Business fraud can happen any time and we encourage you to monitor your Business Credit for any potential risks and threats. Stay informed for free to changes in your business credit profile with CreditSignal®* or check out our CreditMonitor product that will give you in-depth information on your D&B credit profile.
- Evaluate your Supplier Relationships – Like many relationships, you need to evaluate the risks to see if you can trust the supplier in the long run. A good way to do this is by determining a company’s SER number, which will help you see the potential risks of partnering with certain suppliers.
- Keep your Information Up-to-Date – Don’t miss out on potential relationships because of inaccuracies and incomplete information in your Business Credit Report. Evaluation is a two way street and you don’t want to risk losing good opportunities because of out-of-date information. You can update your information and submit corrections for free with our product Company Update.
Small businesses should constantly be planning for the future and thinking about how to manage business risk effectively.
It would be a risky business not to.
What ideas have you have implemented for managing your business risk?
Want to Learn More?
Here are some additional articles you might find helpful:
- I left My Heart in San Francisco, Along With My Credit Card Information
- The Dos and Don’ts of Using Social Media for Your Business
- Safer Internet Day: A Reminder that the Internet is Good for Small Businesses
- Business Fraud: Get Informed Before Your Business Gets Hit
- Should You Be Worried About Your Business’s Online Security
Photo credit: renaissancechambara, Flickr
*CreditSignal only indicates that your D&B scores and ratings have changed and alerts you when your business credit file has been purchased. To view actual scores and ratings and learn about what industries are purchasing your D&B file, we recommend that you upgrade to one of our business credit monitoring or credit building solutions. Please note, due to the proprietary nature of these inquiries and inquiry requests, only the industries in which the purchasing customers reside will be revealed.