There is a little doubt that the risk landscape is changing, and it is more important than ever for small businesses to be aware of the different risks they are exposed to.There is a little doubt that the risk landscape is changing, and it is more important than ever for small businesses to be aware of the different risks they are exposed to.
Today’s challenging commercial environment delivers a massive range of risks, both traditional and evolving, that a business owner needs to be aware of. Aside from identifying these risks, it is just as important to identify your vulnerability and in turn, set up contingency plans. Unsecured business loans can certainly play a key role for mitigating some of this risk.
Some initial risks to consider are:
- Business interruption losses – where you are unable to deliver the products and\or services you are engaged to provide.
- Liability losses – liability for any damages or injuries caused by the actions of your company.
- Key personal loss – if an important employee leaves your company or the small business owner is unable to work for a period of time, the impact can be huge.• Injuries – all costs associated with any employees being injured whilst working.
- Property losses.
Once you have identified the level of risk that your company may be subjected to, it is important to acknowledge how vulnerable you may be to each individual risk. For the risks that are worth being concerned about, the number 1 question is to consider how affordable it is to protect your company against that specific risk.
Now you are in a position to set forward a contingency plan. These may include the implementation of policies, changing business habits or even extra training. The end structure of a contingency plan is totally up to you; we recommend that you ensure that you have adequate business funding to ensure that you can do whatever it takes to mitigate these risks.
Risk management is something that needs to be considered regularly. Taking some time out every several months will put you in good stead, and will be a wise investment of your time and resources.
If you’re looking to mitigate risks within your business with an unsecured business loan, have a chat with our team today.