Do You Have a Risk Management Plan?

Every domain, every sphere, every kind of business comes with its own share of vulnerabilities. As a business owner it is extremely important to not only identify any and all possible risks but also plan for them.

That is where a risk management plan comes handy. It allows for business managers to foresee areas of potential problems and be prepared for them. Having a risk management plan also lets business owners and managers have a pre-decided plan in place in case of emergencies.

Internal and external risks

In the course of running a business, both internal and external risk factors can crop up unannounced at any given time. External risk factors include natural disasters, governmental changes in compliance requirements, economic slowdown, trade wars. Internal risks include human error, technical issues, unforeseen labor shortage, personnel management. As you can already see, these issues can further cause a very wide range of issues, affecting the very existence of a business.

As you can gauge, having a risk management plan is essential for the success of every business. It is a misnomer that only the very large corporations require having a solid risk management plan. Every kind of business, irrespective of its scale, will only benefit from having a sturdy plan in place that details steps to be taken when faced with different challenges.

The very ability to conduct a business is safeguarded by a strong risk management plan. An IT consultant can be very handy in helping you figure out everything from potential risks to contingency plans in case of data breach.

Backup and data restoration

The contents of a risk management plan will vary from business to business. But there is one key point that all businesses irrespective of their type and scale need to be planning for : loss of data.

We live in an out and out tech world where data is our most prized entity. Data breaches are becoming increasingly common and pose a humongous risk. Some data breaches could even put you out of a business if you do not have a data restoration plan in place. That is why every business out there needs to have a solid plan in place for data backup and data restoration.

In fact repeated studies have shown that almost half the businesses who lose their data will eventually go out of business.

Frequently and timely backups must be the norm for any and every business. A number of IT solutions can be used to ensure there is no data loss in case of a breach and that data restoration is a smooth process.

Things to keep in mind while making a risk management plan

Following are the main steps to undertake before creating a plan:

  1. Identify the risks

Identify all external and internal risks your business faces or may face in the future. This is a very important step as your plan will take all these risks into consideration.

  1. Assess the risks

In this step you need to look at the likelihood and the eventual potential impact of a risk. For example if you are in a wildfire prone area, you will need to look at how likely it is that a wildfire can cause destruction at your site of business.

  1. Mitigate the risks

Now you look at ways to minimize harm to your business.

  1. Monitor, monitor, monitor

Constant monitoring of trends and data is an absolute necessity.

RCN Networks has business continuity services that you could subscribe to. You can also complete the Free Security Network Risk Assessment form on the website to know about the potential vulnerabilities in your system and have experts help you overcome them.