Even if you enter the safest business imaginable there’s no doubt that you will still be faced with risks. This is why it is very important for any businessman to know about risk management. Without proper knowledge on risk management you can be sure that when the unexpected comes, instead of being easily addressable issues they could turn into huge disasters.
When talking about risk management the first things you should know is that each business has its own risk so that while you might know how to manage your risks as a restaurateur you’ll find yourself having to learn new things as an online vendor of pre-packed diet food. Of course some risk factors are shared but new factors come in.
According to HP to be able to properly assess the risk to your business you should be able to determine your assets, vulnerabilities/weakensses, and the threats to those assets. If you combine the three then you’ll come up with the risk.
It is important to know the assets you want to protect since of course it is what you need for your business to run smoothly or even survive! Assets refer to both be the physical assets (the store building, computers, stock, etc.) and data assets (your computer data including inventory system and data within, your web page stats, client listing, etc.). You should also identify the level of importance of the assets because in risk management you will need to prioritise in order to know the level of protection and the urgency of protection for each asset, thus determining your time plan in risk management.Once you know this then you can move on to determining the vulneratbilites and threats to your assets but we’ll discuss that in a later post!
To be continued…
Resource: Planning for Disaster: Assessing Risks to Your Business Data
Originally posted on March 20, 2011 @ 11:00 pm