Preventing Unnecessary Risks – 3 Ways to Protect Your Company from Loss

//Preventing Unnecessary Risks – 3 Ways to Protect Your Company from Loss

Preventing Unnecessary Risks – 3 Ways to Protect Your Company from Loss

Running or managing a business has a multitude of risks associated with it. Whether you’re the founder or an employee, every business decision we make must be taken seriously to avoid unnecessary loss. In business, it’s impossible to completely do away with risk, but there are ways to protect yourself, your business, and your employees.

Protect Yourself

This is more important for those who own their own business. While it may feel at times as though you and your business are one entity, legally and financially speaking, you are not. It is imperative that you have separate lines of credit for you as an individual and for your business; that way if your business hits hard times, your personal finances won’t be affected, and vice versa. You also need to ensure your business separately, even if you use part of your living space as an office. You should also diversify your income as much as possible, whether that means working a more stable side-job, investing, or having an adequate amount of savings before starting.

Protect the Business

It’s fairly common knowledge that you need to physically protect your business. Employees need to know that they will be safe and secure when they come into work. While it’s impossible to be completely secure, having an alarm system or hiring a security team will go a long way in deterring any would-be intruders. This is especially important when your employees are dealing with cash, such as in a retail space. You need to have clearly set rules for who can carry cash, how much they can carry, and who makes any necessary deposits.

In today’s world, physical security is not the only concern. As more personal data is being stored online, cybersecurity becomes an increasingly important aspect of doing business. Cybersecurity is one area where it’s best to defer to the experts in the field, so looking to a threat and vulnerability management company may be your best option. If you deal with online ordering, medical information, or store any customer data, cybersecurity needs to be a top priority.

Protect Your Employees

As mentioned before, an overall feeling of security is obviously important to employees. However, there is more to protecting your employees than just making sure their physical workspace is secure. Having clear-cut standards and rules in place lets your employees know what is expected of them, and gives them a framework for dealing with conflicts or issues that will inevitably arise.

Depending on the number of employees or departments you have, you may want to cross-train some or all of your employees to be able to perform different job functions. Say one of your key employees quits unexpectedly. Instead of rushing to hire the first person to walk through the door or suffering because their work is not getting done, imagine if a few of your employees could pick up the slack. This takes some of the pressure off of the hiring team, gives your employees new experience outside of their field, and reduces the feeling of being understaffed.

We know that there are risks involved in any business; without risk, there would be no reward. However, reducing risks and preventing loss is something that should be on everyone’s radar. By protecting yourself, your business, and your employees, you’ll be able to prepare for and avoid some of the issues that will come your way.

By |2018-09-13T14:45:38+00:00September 12th, 2018|Insurance|0 Comments

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Evan is the owner of My Journey to Millions which was started to track his journey from a broke debt ridden law school graduate to building a positive balance. Need more Evan? Follow him on Twitter, Contact him or get new posts directly to your email

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