There are many factors that can cause a business at risk and it is impossible for a company to completely shelter itself from risk. When a company experiences a high degree of business risk, it may impair its ability to provide investors and stakeholders with adequate returns.

So, what are the risks that a business will likely to face?

1.  Hazard risks

Anything in the workplace with the potential to harm people, includes such items as hazardous materials or fallout from machinery.

2.  Physical and environmental risks

Fires or explosions, storm damage, floods, hurricanes or tornados, earthquakes, etc. Some of these can be considered climate-related.

3.  Human risks:

Personnel-related issues that can affect your company’s operation, such as alcohol and drug abuse, embezzlement or business fraud

4.  Technology and operational risks:

Anything that compromises your company’s operations, such as a power outage, cyber fraud, system failures, etc.

5.  Strategic risks:

Failure to respond to changes in the business environment, often the result of poor or wrong business plans and losing the competitive edge in your sector.

6.  Financial risks:

Risks taken with financial assets, including risks in pricing, currency exchange or liquidation of an asset and payment defaults.

A business can’t avoid risks but how can we mitigate risks?

Advance planning and expert consultation can mitigate the downside of some of these risks. One of the best risk management strategy that can be adopt by a company is to divert all potential risks to the insurance company. Many risks are in fact insurable: e.g. fire, fire-consequential loss/ business interruption loss, inventory, burglary, money in transit, project insurance, employer liability, public liability, product liability, trade credit, professional indemnity etc.….

Contact us, Dindings Corporate Insurance Agency (DCIA), for further explore on Business Insurance.