Like most entrepreneurs and small business owners, you have little free time and, basically, no life. But, that’s just fine with you. You are your own boss. You are living the dream. You are fearless. But, what about your risks? What manner of risk management policies do you have in place? When is the last time you had a thorough risk check-up?

Well, if you are like most entrepreneurs, the thought of risk is always on the back burner. For many, risk does not enter into their day to day lives until the unforeseen happens. It is those unforeseen occurrences, those unforeseen risks that will destroy a dream. Taking some time, however, to sit with your risk management advisor will save you some future heartbreak. Taking a quick risk pulse of your business can be a proactive way of keeping your dream healthy and thriving.

Going through the process of identifying and analyzing your risk is not the most exciting prospect for most small business owners and entrepreneurs. However, doing this risk assessment, this risk check-up, will keep your business healthy and competitive. Keep the following guidelines and checklist in mind when you schedule that risk check-up. After all, if you broke your leg would you just drag it along behind you or would you get it fixed?

• A disaster can strike at any moment. Natural disasters are things that cannot always be foreseen. Are you and your company prepared for an earthquake, a wildfire, a blizzard, a hurricane? What happens to your operation if where you are is suddenly hit by a natural disaster? Do you think every business in New Jersey was prepared for Hurricane Sandy? An emergency preparedness agenda is critical to your risk management. Know how such a natural disaster will affect you as well as your customers and your supply chain.
• Examine the one thing that will help you mitigate and lower your risk. That one thing is your insurance protection. When was the last time you sat down with your risk management advisor and went over your coverage? Do you have enough? Is the insurance cycle ripe to switch coverage at a cheaper rate?
• How’s your security? When, really, was the last time you checked to see if your smoke detectors actually worked? Are there a thousand power strips plugged into one measly outlet in the corner? Employee safety and asset protection are major considerations in your risk management strategy. Speaking of safety, how are your computer systems? What kind of firewalls do you have? Verizon recently released a 76 page study revealing that cyber security is not all that secure. Most hackers, they found, hacked their way into systems because they saw an immediate weakness. A “hack of opportunity” if you will. No solid risk management strategy is complete with considering your overall security.

These are just a few of the areas to take in to consideration when doing that regular risk check-up. Taking a meeting with your risk management advisor may not be the most thrilling part of your day, but it is, most assuredly, the most compelling and decisive part of that day.