Optimism is the fuel that drives the entrepreneurial spirit, so it isn’t surprising that most small business owners consider themselves optimists.
Too much optimism, however, can get a small business owner into trouble. A business plan built solely on the “best case scenario” is like a house of cards, one gust of wind—or fire or wrongful termination lawsuit—and the entire business can come crashing down. That’s why smart business owners temper their innate optimism with a healthy dose of reality. In other words, they learn to manage risk.
The first step in implementing a comprehensive risk management plan is identifying potential risks. To help you get started, we have provided a list of the top 10 threats facing small business owners. As you read through the list, consider the unique risks facing your business and ask yourself whether those risks are being managed effectively:
- Protecting your Property
- Business Interruption
- Liability Losses
- Key Person Losses
- Injuries to Employees
- Managing Electronic Data and Computer Resources
- Environmental Exposures
- Employment Practices
- Contracts
- Manage your Supply Chain