All businesses, whether start-up enterprises or large companies, need to incur numerous risks at some point of time in their business operations. It is normal for every company to face hurdles and risks. Yet, they need to make decisions that allow them to smartly overcome these obstacles to attain their business goals. Otherwise, they may end up putting immense pressure on their business finances and time, hampering the growth of the organization. This is the reason why they need to devise and execute a suitable risk management strategy to counter these risks to bring the business back on track quickly.
Michael Saltzstein – 3 risks that most businesses tend to overlook
Michael Saltzstein is a visionary business leader whose area of expertise lies in implementing risk management strategies like crisis management, corporate insurance, strategic business alignment, evaluation coverage, and loss control for esteemed companies in the USA. Many of his long-term corporate clients credit him for successfully implementing effective cost reduction policies in their daily business operations. In the process, these companies have been able to increase their operating revenues while minimizing costs in the long run.
He explains risk management refers to the process by which owners apprehend, scrutinize, and assess potential risks to their businesses. Only then can they come up with a strategy to overcome these threats. Otherwise, it is difficult for them to stop the consequent losses. Generally, business owners tend to overlook these three risks that have the potential to slow down the growth of a company-
1 The spread of malicious rumors by business rivals
Business owners may discover their rivals are resorting to unethical practices to capture the market. These opponents may be spreading baseless, malicious rumors online regarding quality product owners are selling. Such deceptive information has the potential of ruining the owners’ reputation and undermining their customers’ confidence. Business owners should closely monitor their company profile on the Internet and social media platforms to check their online reputation in the market to ensure their peers are not spreading false rumors or reports in their name
2 Lawsuits
Businesses may face lawsuits from aggrieved employees, customers, or trading partners. These plaintiffs may accuse the owners of sexual harassment, unlawfully terminating them or for a breach of contract. In these situations, the businesses should take out a corporate liability insurance policy. Only then can they cover the subsequent legal expenses and damages without overburdening their finances. Moreover, they should also consult a qualified attorney with adequate experience in these lawsuits to manage the cases.
3 Security breaches
In the course of conducting their commercial operations, businesses tend to collect their client’s confidential information regularly. These could include their names, addresses, credit card details, and social security numbers. Businesses take every precaution to ensure this information is safe from unauthorized access. Unfortunately, unscrupulous hackers with malicious intent might penetrate into the data system despite the businesses’ best efforts. To avoid these unpleasant situations, owners should consult a cybersecurity expert for customized security protection.
As per Michael Saltzstein businesses of all sizes are vulnerable to potential risks big or small at some point in time. Business owners should be cautious as if these risks are not arrested in time, they can control the business and slow down its potential for growth to a large extent!