Before seeking cover for your business risks, or entering into a policy renewal, you should look to identify the risks present to your business. Running each business will come with its own risks, both in terms of the type of risk but also how severe they can be too. Across all businesses, however, are some universal risks that you need to be aware of.
Risk can fall into four main categories; namely strategic risk, compliance risk, operational risk and reputational risk. Strategic risk is about the business strategy and the decisions made when looking to grow your business, and compliance risk relates to regulations, rules and laws you have to abide by. Operational risk relates to the day-to-day running of your business, and reputation risk is potential damage to the company’s reputation as a result of a mistake.
Because of the prevalence of technology, you may find that the vast majority, or even all, of your work is being done digitally. And when you’re working with computer systems, servers and digital documentation; there are many risks that are unique to cyberspace that can be neglected by even the most experienced of users. Common cyber risks include malware, phishing, ransomware and distributed denial of service (DDoS) attacks.
