There are numerous emerging risks that many businesses face in today’s volatile economy. Ill-prepared business owners will pay a price if they are not ready to address these risks. It is critical to deploy internal controls and specific risk-reduction measures to protect all aspects of a business. Identifying each risk and taking the time to study the market will help ensure business owners are headed in the right direction to protect their investments.
To keep a business on the cutting edge of its industry, business owners must adapt to the digital age. They must also take advantage of market opportunities that propel them toward greater success. Here are five emerging risks that business owners are sure to face in the near future.
Danger lurks around every virtual corner in the digital world, regardless of the industry a business operates in. To alleviate such danger, cybersecurity measures are of the utmost importance. Taking the appropriate steps to avoid potential security risks and scams is necessary to protect both the business and its customers. All digital information owned by a business must be protected with the latest encryption methods.
Ethical issues and the widespread use of social media should be considered when creating digital policies for employees. Many companies use social media to recruit and raise brand awareness, but few provide their employees with training on social media use. As a business owner, it’s your responsibility to ensure you have outlined to your employees any laws governing social media use in relation to work-related issues. Social media can drive business success, but only if your employees know how to properly use it. One bad social media post can ruin your company’s reputation.
Resistance to Change
Change is inevitable and can serve as a major risk to your operations. By creating policies that address change adoption practices, you can protect your core business model. These practices must reflect a deep understanding of how change impacts the workplace and embrace such change as necessary for growth.
Speed of Technology Development
Business growth and expansion require organizations to keep up with developing technologies. The rapid speed of advancement in technology only increases risk and a company’s ability to manage the risk appropriately. While innovation certainly drives the economy, innovation also requires business owners to stay abreast and prepare for new and interconnected risks. Ideally, you will have one or more employees devoted to technology deployment and compliance.
Social and Health Issues
There must be risk management strategies in place to address issues relating to workplace injuries, wellness programs, obesity, harassment, and ethics. Your employees are at the heart of your company, and protecting their well-being should be a central focus. Putting risk management strategies in place to address social and health issues is crucial to mitigating lawsuits and worker’s compensation claims.
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