Overlooked Business Risks You Need to Protect Against

How many risks are facing your business right now? Every business faces a risk on a daily basis, just as every person does as soon as they open their eyes of a morning. Risk isn’t unique, nor is it reserved for poorly run businesses. It’s a commonality that is ever present in every operational company.

If you are not aware of the risks you face and are not able to pinpoint them and protect against them, then it could be a recipe for disaster. Having a business that is resilient to threats is vital to help you remain viable and profitable. While some threats are indeed more obvious than others, i.e., poor cash flow and cyber threats, others seem to fly under the radar and are more likely to catch you unawares.

Let’s take a look at some of the more overlooked and dismissed threats you might face as a businesses.

Property Protection

You might have your contents insured and other areas of your business, but what happens if the building you operate from is no longer able to accommodate you for any reason? 

Whether it is a warehouse storing your inventory, an office, or a retail unit, you need to have your building protected and a risk management plan in place for any circumstances that render it unusable.

Whether you have a backup plan for employees to work from home, storage you can move some inventory to, equipment for employees to work from, or can operate digitally, you need a plan that safeguards your building and has contingencies for any scenario; however unlikely, meaning you cannot access your building.

Business Interruption

Business interruption is any incident that stops you from working as you normally would. It might be a fire ravaging your building, meaning you don’t have any stock or equipment to do any work. You might find a flood washes away your ability to work or other scenarios lead to the shutdown of your business, i.e., terrorist activity.

This risk, however unlikely, is still a risk and can often be ignored because the odds of occurrence are remarkably low compared to other situations. But the risks are never zero, and on the off chance something of nature transpires, you need to be ready.

Being Outcompeted

Not staying on top of what your competition is doing or how the industry is changing is a considerable risk to take, and it can be the start of the end for your business. The reality is the world of business, regardless of what sector you are in or who your audience is, is highly competitive. There will, for the most part, always be someone else doing the same or similar as you, meaning you need to be aware of their activities so you can remain as competitive as possible. Because, if they’re pulling the rug out from under you and taking away your customers, it’s a slippery slope toward failure, and no one wants that.

Outdated Tech

Outdated tech can be huge for many companies. The hassle of changing or upgrading to new systems or integrating new technologies to overhaul how you work can be expensive and overwhelming, and there can often be a reason to fix it if it’s not a broken mentality. 

However, herein lies the issue. Outdated tech can impact you in many ways. Firstly, it won’t be fit for use, making things difficult to complete and making life harder for everyone. It can also increase risks to your business from aspects such as cyber threads. Outdated tech and software that is no longer supported by the developer or manufacturer can leave you with vulnerabilities that pose massive threats to how functional your business is and how safe it is.

So, whether you need to talk to someone about upgrading from Windows 10 and finding out when does windows 10 support end so you can be prepared and have plans in place prior to the deadline, make it business to know. Or, if you need to purchase more modern equipment to keep up with operational demands, look into it. The risk of using old tech and software can sneak up on you when you least expect it.

Theft of Intellectual Property

Have you ever thought about what could happen if you didn’t protect your intellectual property or even in the event you did and someone was using it to impersonate you and trick customers?

This can be a massive risk to your reputation and even lead to serious consequences down the line. If you are creating anything related to your business, i.e., name, tagline, logo branding, etc., you need to protect all your intellectual property (unique creations of the mind, such as inventions, literary and artistic works, designs, symbols, names, and images used in commerce) and be proactive in ensuring no one is using it without your permission in an attempt to steal your customers or even use as their own unknowingly meaning people get confused as to if another business is anyway related to your company. From loss of reputation to loss of sales, the risk can quickly add up if your intellectual property is misused, and it’s a threat you shouldn’t really overlook.

Using Some Else Intellectual Property

This is simply flipping the above point around, and your business is the perpetrator of the misuse of intellectual property towards someone else, intentionally or unintentionally.  From being sued by the owner of the intellectual property you are using and finding yourself facing fines and legal costs to damage to your reputation and more, choosing to use someone else’s intellectual property knowingly is a huge no-no, even if you unaware you’re doing it, and thorough checks must be made prior to going public to avoid any confusion or legal comebacks on you. This could include using a competitor’s logo or slogan without permission or using a copyrighted image in your marketing materials without the owner’s consent.

While it is essential to protect against the more obvious visible threats, it’s important to pay attention to all aspects of your business to ensure complete and comprehensive coverage, and that risk management plans are in place and effective.