There are many things to consider when running a business. You have to think about what products and services to sell, what consumer market to target, how to balance the books and stay in the red, how to structure departments and employees…
The list goes on and on.
Due to all of the different elements you have to juggle, it’s easy to overlook the various risks your business faces on a day-to-day basis. To make sure you know what you’re facing, watch out for the following risks to your company.
In this day and age, the most prevalent threat to businesses comes from cybercriminals. It is estimated that, by 2025 cybercrime will cost $10.5 trillion globally on an annual basis. Not only are cyberthreats increasingly widespread, but they are also becoming more and more sophisticated.
Due to this, it’s essential to have an up-to-date antivirus software package protecting your company. Yet this is only the start in keeping your business safe from cybercriminals. Perhaps the most important element is educating your employees.
Human error is the most common reason why cyberattacks are successful, and these errors are due to a lack of knowledge. When employees are aware of the threats that exist, they are less likely to be susceptible when a dodgy email lands in their inbox.
Money laundering can only affect your business if you’re directly involved in it, right? Wrong. It’s possible for customers to use your company as a proxy for their illegal activities, a place where they can clean their dirty money without the authorities realizing.
The problem is if the authorities do notice their activities. Anti-money laundering (AML) regulations are used in an effort to curtail this threat. So if your business doesn’t follow AML compliance, it could land in hot water – particularly if you operate in the financial sector with its strict rules and regulations – even if you haven’t been taking part in criminal activity yourself.
There are certain risks which you have no control over, and natural disasters fall under that category. Hurricanes, floods, tornadoes – they all have the potential to disrupt your daily operations. It could range from putting your business offline for the day to destroying your physical assets.
While you cannot stop natural disasters, there are ways to prepare for the potential damage they can cause. One of the most important is to ensure you backup your data. This way if a natural disaster destroys your physical data center, your precious data remains safe.
Reputational damage is a quick way to sink your business. Trust levels can disappear, customers might decide to go elsewhere and suppliers could decide to rescind long-standing partnerships.
The problem is there are various reputational risks you can face. These risks include product safety recalls, lawsuits against your business, and negative reviews from clients. In an effort to manage reputational risks, one step is to only provide an overall quality service – from your products to customer service. Also pay close attention to what is said about your business by both customers and employees.