Punitive vs. Preventive

Each business comes with a lot of your risk and this is true for any business including yours. The best way to mitigate risks is by identifying them and putting policies and procedures that will help you manage your risks.

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image source: ceriusexecutives.com

Here are some steps you can take to manage some of the risks that your business may face.

Financial Risks

Each business has financial risks. That is why, as much as your can, you should minimize your expenses and set aside funds for the rainy days for your business. The funds can be in a form of stocks and bonds that you can liquidate for your business when needed. These stocks and bonds can also be additional profit earning investments for your business.

For your team, you should have procedures in place to minimize expenses. You should put together an approval procedure for capital expenses and a budget for each department to cover operating expenses.

Business Development Risks

The key to business development is to have a clear picture to what you want to achieve and what are the different steps you will take to achieve them. Remember, too, that you should not put all your eggs in one basket. You should have several means to develop additional business for your team.

Information Risks

One of the risks to your business is for your information to be leaked to your competitors. You should put together a policy on information sharing within your company. You should also have procedures on how to keep your information confidential. This includes using a secure connection at all times. Web-based email can also pose risks for your business, so invest on an email host as soon as you can, which will add layers of security to your communication tool and storage of information.

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