What to Consider When You Conduct a Business Risk Assessment

In order to keep your business going when it’s shut down you need to conduct a proper business risk assessment. 

Risk assessment is a fundamental part for any business in developing a realistic and reliable business continuity plan. Companies that proactively think of all possible scenarios and determine which events are most likely to occur are able to focus their emergency planning efforts where they will yield the best return on investment and remain in a better position to recover from any disaster. Here are some things you need to consider before you conduct a business risk assessment.

Most Common Threats

  • Cyber attacks like viruses, worms, Trojan horses, cyber terrorism, and cyber warfare.
  • Natural disasters such as wildfires, hurricanes, tornadoes, earthquakes, lightning strikes, hail, meteor strike, and floods.
  • Human error like poor training, poor maintenance, a lapse in concentration, misconduct, substance abuse, fatigue, and counterfeit parts.
  • Malicious attacks like acts of terrorism, bomb threats, vandalism, robbery, civil unrest, protests, and armed intruders.

Assessing Risk

  • Geographical – What is your proximity to things like flood plains, mountains, airports, volcanoes, etc.?
  • Historical – Has anything happened in your community, facility, or neighborhood in the past? If so, how long ago was it?
  • Organizational – Are there any factors you need to know from your employees that put your business at risk?
  • Regulatory – Is there anything about your field of business that puts your business at a higher risk of accident? If so, what are the regulations that dictate how your business should operate in order to reduce the chances of an accident?

For all of your business insurance needs as a Texas business owner, contact VGW Walker Insurance in the entire state of Texas. As an independent insurance agency, we will work with you to ensure you have the right amount of protection for your specific needs, all at the right price to fit your budget.