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Module 8: Risk Management

Key Takeaways

  • Risks associated with a small business can be characterized as internal and external. You have control over internal risks, but your control over external ones is very limited or non-existent.
  • Begin assessing risks by listing events or resources that could impact continued operations and cash flow.
  • The costs to insure or minimize a particular risk should be weighed against the potential impact of the risk on your business.
  • A business continuity plan that is updated regularly should be part of your overall business.
  • Strategies to avoid risks can include communication, setting expectations, support systems, staff training, insurance, risk assessment and contingency planning.
  • Be honest in reviewing your business for risk and know the warning signs. Don’t ignore a risk just because you don’t want to deal with it at the moment.
  • Seeks assistance from others who may see things you can’t because you are too close to the business.
  • Include an exit strategy in your initial business plan and revisit that strategy from time to time.