When it comes to risk and risk management, most entrepreneurs and small business owners don’t seem to have the grasp on it that they should. Many small businesses today are operating without a business plan. Your business plan is the life blood of your venture. It is, also, a solid staring point for identifying your risk and a way to begin laying out a plan to mitigate it.

It isn’t just about insurance coverage as many small business owners think. Sure, proper insurance coverage is vital to your overall risk management strategy but there is so much more to consider. There are immediate, everyday, operational situations that present risk challenges. It’s not just about that natural disaster or building fire.

• Perhaps the most important factor in your risk management plan is your people. For a small business to truly survive, and thrive, it is critical that you have the right people in place. Do they have the proper entrepreneurial mindset? Will they fit in with the culture you are creating? One of the most important things you can do for your small business is to cross-train all of your employees. This will allow everyone to really get a feel for the overall mission of the company and it gives you the flexibility, and peace of mind, to know that your operations are not dependent upon just one person in one role. In addition, if an employee decides to leave your company, you will not be scrambling to fill the position.
• Lawsuits are a major risk management factor and must be mitigated as much as possible. Not only do you have to concentrate on the public, your customers, but suppliers and other support alliances, too. In addition, you must guard against the potential future risk of an employee lawsuit be it wrongful termination or sexual harassment. A solid risk management strategy will keep these factors in mind.
• Theft is, always, a risk that must be mitigated at all costs. This can include everything from stealing paperclips to stealing company secrets and passwords into the company’s computer servers.

In the end, it is, always best for the small business owner to consult with a risk management advisor. These are professionals who only job is to ensure that you, and your business, are covered and protected from risk. Having that professional advisor in your corner will provide you with the peace of mind you need to just concentrate on what you need to do to take your business to the next level.