Risk Management, Avoidance, Retention, and Transfer
Managing Business Risk Exposure
Risk management is the process of developing and implementing a safety program, business processes, hiring and terminations, harassment and sexual harassment training in the workplace, driver training, incident tracking, and claims management.
There are 5 basic principles to effectively managing risk in small business.
1. Identify the risk
2. Analyze the risk
3. Evaluate and rank the risk
4. Reduce and transfer unacceptable risk exposures
5. Monitor and review the risk
Risks to Transfter
A small business cannot assume all risk exposures and maintain profitability. If a business owner is collecting customer information, or credit card data the business has an obligation to protect customer information. Cyber/ and data breaches are becoming increasingly prevalent. Small business can be subjected to cyber or data breach. A cyber or data breach crime costs are expected to rise up to $6 trillion dollars, by Forbes Magazine.
Every small business is unique, there are things that apply to some businesses but not all. However the risk that applies to all businesses is safety. Safety issues can occur within every businesses of all sizes.
Insurance Group of Nevada partners with companies to provide resources to improve and prevent safety issues and concerns within a business. Resources include driver training programs, vehicle maintenance and repair, proper signage, CPR, AED preparation training, legal, and safety inspections.
Insurance Group of Nevada works to provide these services at a reduced or no cost to a business.
When it comes to small business, small business owners are extremely vulnerable to vicious cyber attacks. Small business owners such as accountants, bookkeepers, property owners, property managers, building contractors, distribution and logistic companies, and many more.
Accountants and bookkeepers has client banking, payroll, and tax information. Property owners and property managers has tenant information such as banking details, and credit information. Building contractors has different bidding and contract systems that contain valuable consumer data. Distribution and logistic companies operate in a technological environment. Many of there systems are automated systems that contain consumer information such as credit card, banking, suppliers, and vendor information.
A cyber attack can occur in many forms. a common attack is malware infestation of your computer network and systems. Malware is a hostile and intrusive software that is attached to a computer system or computer network. Malware is used by criminals to hack user computer systems and gain access to user password information. Another attack is called DOS attack. The DOS attack floods a network with useless network traffic. The purpose is to slow down the network and allow an intruder access to the computer system.
It is important to speak with your agent/ broker annually to review the different insurance coverages available to protect your business. We recommend adding a cyber and data breach coverage to your business insurance policy.