Risk Management Fundamentals For Small Business Owners

The principals of a small business need to be extremely conscientious about their risk exposure. Countermeasures to offset exposure can spare them from potentially significant loss or liability. Effectively managing risk is integral to a company’s ability to grow and develop. Here are some key tenets of operations management geared towards proactively addressing risk.

Take Steps to Secure Your Business’ Premises

Physical security measures can reduce risk by preventing unauthorized access and theft. Access control and video surveillance systems are key safeguards, and some insurance carriers require businesses to have these types of systems in order to be eligible for coverage. It is usually advisable for businesses to work with security companies that are experienced serving commercial clients in their area. Businesses that need assistance with CCTV security systems in Huntsville should contact a company that offers both installation and ongoing service help as needed.

Create Safety Policies About Day-to-Day Activities

Companies of all sizes should have policies about key safety matters. Even if a workforce consists of just a few personnel, everyone needs to be on the same page about expectations pertaining to workplace safety. Policies should detail proper procedures for carrying out any potentially unsafe activities involved in day-to-day operations. All staff should have regular training, the correct PPE should be available and worn to ensure safety in the workplace, and any relevant spill kits for chemicals should be on site and close to hand to reduce potential dangers.

Ensure Compliance With Applicable Regulations

Businesses must exercise full compliance with any laws or ordinances governing their activities. Federal, state, and municipal law may control numerous aspects of their operations. Following safety rules imposed by OSHA and mandatory participation in a state’s workers’ compensation program exemplify key safety compliance issues that principals must be aware of. Likewise, they must adhere to any regulatory mandates involving their organizational operations. Financial recordkeeping and employment activities, for example, may fall under the scope of multiple bodies of law.

Businesses across every industry must be strategic about managing risk. Their policies must adapt as their operations and risk exposure change over time.

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