Risky Business: Tips to Minimize Your Company's Biggest Hazard

Brooke Chaplan

February 12, 2016

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There are many risks and hazards associated with running a business. Some can result in the utter destruction an enterprise, while others merely drain company resources. All of these hazards deserve your attention because, in the early stages, it's difficult to differentiate between the two. The following tips will help every business owner think like a risk manager, and minimize their company's biggest hazards.

Location Risks and Hazards
Your location is one of the many hazards your business faces, and one you probably only infrequently think about. Your location subjects you to nearby fires, extreme weather, floods, and hazards resulting from natural disasters. To mitigate a total disaster, it is wise to draw up an evacuation plan and conduct periodic fire drills to keep employees safe and knowledgeable about procedures.

Physical Hazards
Physical hazards are those things common to any kind of building. These include fires, slips and falls, falling objects, electrical hazards, parking lot vehicle accidents, and other negative events that threaten your workers health. These events include shop floor accidents, chemical spills and repetitive use injuries. Some organizations require having occupational safety professionals on staff. Such employees bring with them specialized training and a degree in occupational safety and health that makes them essential to the safe operation of their companies.

Technology Hazards
The loss of power may be the most common technology hazard you will be exposed to. Having Auxiliary (back-up) power sources will keep your factory, store, or office running is a must. Computer network security is close to electrical power in terms of priority for most businesses, and network security becomes increasingly challenging when employees use personal mobile devices to connect to the organization's private network. The cure for this hazard is to have a robust "BYOD" (bring your own device) policy in place.

Administrative Risks and Hazards
Growth is a good thing, but very rapid growth can get in the way of operational excellence. There are specific challenges to running a fast-growing company, which could be the loss of focus, diminished customer satisfaction, brand dilution, bad hires, and loss of financial controls. Along with administrative hazards, fast-growing companies are frequently subject to human risks which can include alcoholism, drug use, fraud, embezzlement, and theft. The key to neutralizing these types of hazards is to prioritize them in accordance with a cogent risk assessment plan.

When a hazard becomes something more than a theoretical a risk, a well-prepared disaster recovery plan can mitigate its impact on your people, productivity, and the bottom line. No matter what type of business you run, having an understanding of your organization's strengths, weaknesses, and vulnerabilities represents the first steps in managing and protecting your business from risk.