We've discussed the importance of having a risk management team as part of your company's management. However, risk management 'teams' sound resource dependent and costly and they can be. What if you're a small business, a one-person shop, or you have to make a fast decision about a strategic move? You might feel as if you are a ship adrift on the sea of uncertainty.
While you may be at a disadvantage regarding team input or information, that doesn't mean you can't make a risk management analysis of the situation and develop a game plan.
Here are some questions you can use to complete a risk assessment of almost any situation. While this won't make the decision or you, it will help you organize your information and thoughts and lead you to a more precise determination.
Understand The Problem And Its Implications For The Business
Risk management begins with an understanding of your current situation, and the problem facing the company. For example, changing to a new CRM system might seem like it only affects the marketing and sales departments. However, it can also affect your shipping department, your management staff, and even the IT department since they will probably be the lead techs for the new system.
It could even affect your insurance and liability if you design and implement a proprietary system. If it relies heavily on online interfaces and collections of people's information over the internet you have a privacy and security responsibility. These are both areas where you may want to consider purchasing cybersecurity insurance.
Consider These Areas With And Without The New Risk
Imagine what could occur if you don't take action. What will happen to your business? Are you missing out on a significant client, increase in market share, or loss of income? Sometimes, it's better to see what life will be like if you kept everything the same instead of how things will differ if you make the change.
Divide the risks into the following categories, then assess your position in each of the areas:
You don't need a team to make those decisions, because you are the expert about your company. You do have a lot of knowledge about your industry.
Remember, you can always reach out to any professionals you contract with, such as an accountant or insurance professional, and get their opinion of your situation and decision.
Culture Insurance works with our clients in helping them make the best decisions for their company. We are small business owners also, and we understand the crucial decisions that must be made by business owners. We offer an array of policies and are highly knowledgeable about risk.
If you are considering a significant change to your business operations and would like to understand the implications with your insurance, we encourage you to call us for a consultation.