Get started with a simple, easy to follow plan for managing and mitigating business risks and if needed expand from there. Take these steps to put an initial risk management plan into place at your company:
First: identify risks
Some risks are common to most or all businesses. Others are very specific to your business and only you as the owner can know them. Some initial risks to think about are:
Second: determine your company’s vulnerability for each risk
Vulnerability is a function of probability – what are the odds that a particular risk will materialize- and cost – how much does your company stand to lose as a result. The goal of this step is to quantify which risks are worth worrying about and which ones aren’t.
Third: prepare contingency plans
Contingency planning goes beyond just buying insurance. There are many ways to manage risks: