Risk is a constant in the business world. On the entrepreneurial spectrum, it is at the opposite end of the reward. The only good thing about it is that it motivates you to do things you have never done before — to defy the status quo.
Certain risks, however, are a threat to your business. Knowing this, you need to identify all the factors that may take a toll on your business. Keep in mind that these risks come in different types. If you know what they are, it will be much easier for you to put necessary measures in place.
Below are the most common types of business risks:
Risks under this category refer to unexpected events that have a direct impact on your business. Examples are fires, earthquakes, and hurricanes. Events caused by people, such as civil wars, riots, and looting should also be taken into account. The most practical thing you can do is to get the right insurance policies.
Risks on Finances
Debts, heavy cash outflows, and bills not paid by clients can cause problems. The best way to deal with these risks is to streamline the cash flow by removing unnecessary bureaucratic procedures. You may also implement a strict policy regarding payments. Consider getting a case management system like VersiTrax to make things easier.
Risks on People
You may have good employees, but do not feel so assured yet. Some of them may have hidden and corrupt agenda that may put your business in jeopardy. Prevent this problem from the very start. Implement strict recruitment policies. If you need to conduct a background check, do so.
These are only some of the most common types of risk that may adversely affect your business. You may choose to work with third party providers specialising in compliance and risk management to make the work much easier.