Here are some risk management tools that you, as an entrepreneur, should consider using in your company.
Finding the Best Risk Management Tools
As is the case with most businesses, finding the best and most effective risk management tools involves finding the one that best meets the needs of the business and the type of industry. Look for a tool that:
- Supports analysis that works for your company
- Provides necessary information you need to make decisions
- Is accessible to all personnel
- Have the data readily available
- Support integration with other program management processes.?
Determining Risks to Your Company
You're probably, or hopefully, aware of the various forces out there that can create havoc in your business if your business is not adequately protected. This is the first and most important thing you must do to ensure you have not only the most effective risk management program but also the most effective and appropriate risk management tools to promote its success.
Here are some potential risks that could prove harmful to your business:
- Employee theft: One of the best ways to prevent this is by closely monitoring your employees and carefully screening them prior to hiring them.
- Customer theft: Using safeguards like identification checks can decrease your chances of getting ripped off by unsavory customers.
- Robberies and vandalism: An effective and high-quality security system deters thieves and vandals while also keeping you apprised of what’s happening when you can’t be there.
- Cyber invasions: The more technology advances, the more chances of Internet theft, hacking or phishing. Make sure your computer system has a current security system and anti-virus system installed.
- Property damage: Whether your business is damaged by vandals or a tornado, it’s still going to be damaged. Make sure you have adequate business insurance. You may want to check your policy and make sure you have the following types of insurance.
Addressing The Risks
Once you've identified the risks, you still have to come up with a way to handle them. Insurance is the best way to protect you and your company, while keeping it profitable. Here are some common types:
- General liability insurance: covers you against lawsuits for damages you cause to another person or business
- Property liability insurance: covers you or your business against lawsuits for damaged caused by your defective product
- Professional liability insurance: covers your services and protects against malpractice, negligence and similar claims
- Commercial property insurance: covers your business against loss or damage to your business property.
