10 METHODS FOR IDENTIFYING BUSINESS RISKS

It’s cliché, but risk is everywhere. If you ask a business executive to answer “what is your biggest risk,” you may get 100 different answers from 100 different people.

 

In its simplest form, a risk is a chance of a loss, an uncertainty of loss, a possibility of various outcomes, or the difference between something that is expected versus what actually happens.

In order to know what risks are around your business, you need tools to identify those risks. The following are ten methods you can use to identify risks.

• Checklists and Surveys.
• Flowcharts.
• Insurance Policy Review.
• Physical Inspections.
• Financial Statement Analysis.
• Compliance Review.
• Contract Review.
• Policy and Procedures Review.
• Loss History Review.
• Experts.