by
on May 23, 2023
Risk management is an essential part of owning and operating a small business. Comprehensive plans can improve the safety of business operations and reduce the risk of loss
A vital aspect of running a small business involves managing its associated risks, as no operations are immune to internal or external threats. A risk management plan involves implementing various techniques that can help mitigate or prevent loss.
There are multiple ways a company can organize its risk management plan, but steps commonly consist of identifying, assessing, and managing risks. Businesses also need to continually monitor and review their policies and procedures to ensure their courses of action remain applicable and relevant.
There are several types of risks small businesses may encounter, including the following:
While examples of risks are numerous, a comprehensive risk management plan is key to overcoming them. A plan generally includes the following steps:
Small businesses can receive several benefits from implementing effective risk management protocols. Not only do these protocols mitigate or eliminate potential risks, but they may also lower insurance premiums, as insurers may note how they reduce the business’s likelihood of filing an insurance claim. Insurers may also offer resources to help a business strengthen its risk management practices.
It is never too early to begin risk management planning. Contact us today with any questions or for more information.
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