Any business, small or big, is never completely safe and carries series of risks with it, such as personal safety, consumer market transitions, theft, potential legal issues and so much more. Most small businesses do not have enough budget to support the outcome of any of these risks mentioned. That’s why they constantly need to work in preventing such risks in order to continue with their success when new opportunities and obstacles present. As a business owner, you need to take steps to minimise these kinds of risks by obtaining insurance for your business and assets and implementing security measures as well as disaster planning.
Here are the five main ways to prevent security risks that your small business may face, given by Portcullis.
Disaster planning
Some businesses never reopen after a natural disaster such as flood or fire. That’s why you need to develop a risk management plan in case of a disaster. In many cases, a disaster will make you relocate your business temporarily and a standard insurance policy will not cover the loss of the income you may suffer in this time. So be prepared for any situation and expect the unexpected. Securing coverage for all the problems mentioned by adding it to your property insurance policy will solve this problem and you will be able to recover from a disaster.
Secure the company’s building
Small businesses can suffer a great loss in the case of crimes such as theft, shoplifting, and burglary. Unfortunately, these crimes are very common and very costly. As a person in charge of your business, there are decisions you can make to reduce the risk of such crimes happening. First of all, facility location and building security should be your number one concern. Make sure that your company is located in a low-crime area and that you invest in experienced and well-trained security guards as well as security surveillance system, steel gates with key automation, alarms, motion sensors and breaking glass detectors, so you are sure who is entering and leaving your premises.
Get an insurance policy
Getting a good small business insurance policy that covers all areas of your small business is always a good idea. Make sure to insure all inventory, business equipment, and vehicles as well as the company property. Insurance will not directly reduce the risk you may face but will take off the financial burden of your shoulder in case of any severe loss.
Recognise Embezzlement
Embezzlement or employee theft is a problem businesses of all sizes face. The best way to prevent it is to recognise the warning signs and implement an internal control system. Some of the signs that your employees are stealing from you are an increase in overall sales returns, unusually small sales that could mean that some of them were not recorded, bounced business checks, inventory shortage, profit declines and more. If you recognise or even just suspect employees theft, there are actions that need to be taken and first of all is implementing an internal system of controls that includes screening applications before employees are hired, regular bank account examination, overseeing payroll preparations etc.
Cyber attacks protection
Have in mind that as technology continues to advance, the risk of losing your data due to a cyber attack increases, as naturally more of your data is stored electronically. Some small businesses tend to lack in advance cyber security measures and as such, they are an easy target for hackers. Taking the necessary precautions when it comes to preserving your confidential information you store on your computers is a must in order not to be a victim of a cyber attack that can lead to tremendous losses. Make sure to obtain a cyber liability insurance that will help you finance any losses due to data breach.
There are a lot of risks small businesses can face, from natural disasters to employee theft and crime-related risks. But there are also ways to reduce such risks by implementing necessary security measures; securing your company building and staff as well as securing your assets and inventory and of course, making sure your business as a whole is safe from embezzlement. And yes, all of these security measures can be quite expensive, but it can be a lot more expensive to recover from an occurrence of any of these risks than it is to address them proactively.
More on having a contingency plan and cyber security.
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