An unfortunate part of doing business is the number of risks that you will face. This can be particularly apparent for SMEs who may not feel they have the resources to prepare against all of the possible risks to their business continuity. Coupled with this, new risks are constantly emerging which can throw up new uncertainties.
One survey by Allianz which questioned 500 SME leaders suggests that only half of respondents fully understood the risks which were facing their business.
This is not particularly surprising given the emerging risks that businesses face and which include:
What can businesses do to protect against emerging risks?
With new risks emerging all the time, as a business it can be hard to stay on top of these.
Carrying out regular risk assessments is a good place to start as this can give you a good handle on the types of risk your business may face.
Having the correct insurance in place is another area that businesses must pay close attention to. The study by Allianz revealed that one of the top 5 concerns to SMEs is significant interruption to the running of their business. Yet, often overlooked is the need for business interruption insurance.
Business interruption insurance provides cover for loss of income that a business may suffer if they have to cease trading for a period of time as a result of suffering a disaster event. This type of cover usually won’t be provided by a contents or buildings insurance policy for example, which typically provide cover for physical assets.
Whilst emerging risks need to considered by your business it is equally important to think about the risks which can threaten your business’s ability to trade – flood, fire, vandalism for example. Risks which business interruption insurance can protect your businesses financial position against.
It is also worth discussing your insurance needs with a broker who may be well placed to advise you on the types of insurance cover you need to protect your business. As well as being able to discuss your risk profile and the suitability of specific insurance covers. Specific insurance covers can protect your business against some of the emerging risks businesses face such as cyber insurance or terrorism protection.