Risk Profile for a Small Business with less than 500 employees
1. Economic recession leading to decrease in consumer spending
- Category: Economic
- Internal or External: External
- Controllable: Not
- Risk Management: Diversify products/services to appeal to different customer segments and establish a cushion of savings for emergencies.
2. Data breaches or cyber attacks
- Category: Technology
- Internal or External: Internal and External
- Controllable: Partially
- Risk Management: Implement strong cybersecurity measures, regularly update software, and provide employees with training on cybersecurity best practices.
3. Employee turnover leading to loss of key talent
- Category: People
- Internal or External: Internal
- Controllable: Yes
- Risk Management: Develop and implement a robust employee retention strategy, including competitive salaries, opportunities for growth, and a positive work culture.
4. Natural disasters such as floods, hurricanes, or earthquakes
- Category: Environmental
- Internal or External: External
- Controllable: Not
- Risk Management: Obtain appropriate insurance coverage, create a disaster preparedness plan, and secure physical assets in a safe location.
5. Regulatory changes impacting industry operations
- Category: Legal
- Internal or External: External
- Controllable: Partially
- Risk Management: Stay informed about regulatory changes, adapt business operations accordingly, and consult legal experts for compliance guidance.