Any business comes with management risks and this is true for retail trade stores as well. There are many risks that need to be identified and managed. Today, we want to take a look at the top 5 risks that can cause problems for your business. It is important to be able to identify these problems and also successfully deal with them before they become a problem. Risk management solutions are important and you should consider hiring a company to help you if you’re not sure how to approach it.
These are the top 5 risks that you can expect and will need to deal with:
Loss of property, stock, or money. Theft and loss of stock is the most common risk. Employees or customers can steal from the store. Employees can give things away for free without telling anyone. Stock can get lost. Your property may be damaged due to fire or water damage. All of these things cause loss in some way. To deal with it, you need to ensure that you have strict security policies in place and that you can easily catch and deal with thieves. You should also make sure to get business interruption insurance or something similar to prepare for when your store may need to close for repairs.
Injury of employees and customers. We often hear of lawsuits against companies by employers who got injured on the job. The same with customer injuries. Lawsuits can cost a lot of money and cause your reputation to take a dip. You can prevent injury by ensuring that there are no hazards in your store. Things like loose wires, loose tiles, stairs without railings, slippery floors, sharp or protruding objects, etc. should be taken care of. You or your employees should do regular sweeps of the store during the day to ensure that customers are safe. You also need to ensure that your staff will not be put in a situation where they can get injured.
Security breaches. We live in a digital world in which it is becoming increasingly easy to hack and steal data. There are many ways in which this breach can take place including physical documents or information being copied or taken, system hacks, credit card system problems, and more. You may even experience people hacking your website or emails to try and get information on your finances or business processes. It may sound far-fetched, but unfortunately it is a very real threat.
Competition. Competition in the market is healthy and needed. However, if you are a small business or store and a big corporate or commercial chain store opens up near you, chances are you will experience some reduction in customers. To add insult to injury, you now need to also keep an eye on online competition because business is no longer restricted to brick and mortar. Be prepared for the competition and instead of panicking, adjust to the new environment and make sure that you still offer the best products and services.
Risk is part of running a business and you should face it head on. Preparation and having plans in place for every eventuality is the best way to help keep your business out of trouble. For tips on loss prevention, go here.