Create a risk profile on any small business having less than 500 employees
Consider this questions
Are the risks to the business mostly external, internal or both
Does the business operate in naturally hazardous or heavily regulated industry
Does the location of the business make it vulnerable
Do aspects of the businesses operate make it susceptible to people risks
Does the business operate in a way that leaves open to technology risks
The risk profile should identify five risks in priority order
Add bullet points beneath each risk that describes the category of the risk and whether it is internal or external, controllable or not
Aad last bullet to describe a realistic way of managing the risk
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.