Managing Unexpected Risk

Published on May 29, 2020, 1:28 p.m.

Most business owners are known to be very optimistic. All businesses involve a lot of risks that in one way or another disrupt day to day operations of the business. One of the surest ways that most companies rely on to mitigate the risks with is having a good insurance policy in place.
It is important for any business to compile a list of risks that it could potentially face. Every business is different and so are the risks that are involved. Once you have identified your risks, it is important to put in place strategies to mitigate the risks. The best time to draw up your risk management strategy would be at the inception of your business plan. As your business grows, make sure you revisit your risk management strategy.
Apart form getting an insurance policy in place, there are a few other cost-effective methods of mitigating risk. For organisations that handle a lot of data, backing up data should be their top priority. This can be done internally via cloud back up or can be outsourced to a trusted company that offers great solutions at an affordable price.
Many businesses have understood the importance of insurance cover. A good number are taking up the business interruption insurance. There two common types of business interruption, fire and floods. According to Wikipedia, Business interruption insurance (also known as business income insurance) is a type of insurance that covers the loss of income that a business suffers after a disaster. The income loss covered may be due to disaster-related closing of the business facility or due to the rebuilding process after a disaster.
According to the Business Survival Guide, taking a business interruption insurance is important as it helps cover any loss of revenue due to an unforeseen event. Do you think your business is at risk of any disaster? Is business interruption insurance an option you would consider for your company?