Animals comprehend their vulnerability. Vertebrates have a dorsal and ventral side. Our dorsal sides are our backs — from the Latin dorsum. Our ventral sides are our bellies. Unshielded, our bellies are one of the weakest points on a vertebrate animal.
Dogs showing submission roll onto their backs, displaying their belly to the dominant dog. Armadillos must roll into a ball to protect their vulnerable underside. Every animal species understands its vulnerable side and how to protect it.
What is your vulnerability?
Every business entity has a vulnerable side too. Learning how to protect your business by assessing risks and managing vulnerabilities is a wise investment.
If you do not assess risks and discover your vulnerabilities, you stand the potential to be ripped apart by unforeseen consequences.
How do you assess risk?
Assessing risk requires a systems approach and perhaps outside experts. There are professionals (such as our firm) who will help assess your risks. Experts from every area: financial, HR, IT, physical plant and electrical are all good to help assess your risk and propose safety measures to prevent loss. CPAs can assess your financial systems and identify weaknesses in your management of assets, both property assets and money. Human Relations consultants can help you by conducting background checks of potential employees. You can call on the fire department to assess your warehouse or office or storefront to protect you from fire threat. IT consultants can examine your ability to back up and secure vital information.
You may be a business with sales of $50 million a year or one with sales of $50,000 a year, but each is vulnerable. Physical / premises weaknesses, human / employee weaknesses, financial / information vulnerabilities, and reputation / public relations vulnerabilities are present in every business. Finding yours, making a plan and mitigating risk is crucial in order to be a mature business. Of course, there are many businesses who never undertake risk assessment. And they never have a threat or loss. And there are just as many caught unawares whose companies disappear overnight when the unthinkable happens. Do not hide from the opportunity to plan.
In the Carolinas, we live with the seasonal threat of hurricanes. Have you assessed your ability to weather a category five or lesser storm? Have you made sure you have all your IT systems backed up in the cloud? Are all your paper files stored above the one hundred year flood height? Do you have an emergency alert and notification system in place to inform your employees not to report to work in the advent of a storm? How will you notify them to return to work you are able to resume operations? Do you have business interruption insurance? We could go on and list multiple areas to examine.
Accept that every component of your business is vulnerable to loss, interruption of business, damage, or absolute breakdown. Now the question becomes, “What does it take for me to get back up and running?”
Involve every employee and manager in making an outline of what is essential and critical in order for them to work. Depending on your product or services, you may be able to all work remotely. If you are a manufacturer or hard-goods producer, you will need to outline how to get back into operation. This requires that you have agreements with vendors from outside our geographical area lined up to provide materials, support and services to help you get back up and running.
While you may object to going to these lengths now to assess risks and plan for interruption and recovery, planning now will save you money, time and ultimately your business.