Business disruption is something that every company around the nation has felt this year. COVID-19 shook the world when it forced commercial operations to close their doors for months. While you may just be getting back on your feet, now is a good time to take steps to reduce business interruptions that could happen in the future. Here’s how to get started on adequate business risk management.
Minimize Business Interruptions
Assess the risk
First, consider environmental risks and human risks. Know what challenges your company faces – these may be fresh in your mind after surviving lockdown. Once the risks are identified, you can begin to understand all elements involved, such as the hazard itself, the assets at risk, and the ultimate impact of the risk.
Analyze the impact of each risk your company faces. Consider lost sales, increased expenses, regulatory fines, and supplier delays.
Implement steps to mitigate each risk
Prevention is your best step to take. Understand how you can prevent such issues from arising. If you cannot prevent some risks (i.e. a global pandemic), then consider how your business can respond quickly to alleviate some pressure (i.e. having an online e-commerce site).
Prepare an emergency plan
Ensure your team knows how to handle an emergency. An emergency plan should be practiced and reviews to ensure its effectiveness. Consider how your team, vendors, and clients will be alerted, how and when you will close the building, and how data will be recovered.
Understand your insurance coverage
Insurance is there to help your business when the worst happens. Read through your policies to ensure you know what is and isn’t covered. If you see gaps in coverage, talk to your insurance agent to fill them with coverage. Your agent will also be able to advice on adequate business risk management practices to better safeguard your company.
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