Protection from common business risk

Protect your business against common risks

Every business owners and workers in South Africa have their own risk and business risks we all need to avoid. In business, there are different types of risks either internal or external.

business risk

This risk can affect your business operations one way or the other. The risk we are discussing about cannot just ruin business operation but damages health. It can also be based on natural disaster. Some other risks might be due to ignorance. Risk can be defined as the probability of something to occur which will have a negative impact on plans. A lot of business risks disrupt entities in South then they have to undergo liquidation due to many risks we will discussing here.

There some risks we need to protect our businesses. These risks are categorized into two, there direct and indirect risks.

Direct business risk

business risk

These are common risks that can interrupt your business, there is no way you can protect these disruptions, but to get an insurance to cover your business with business insurance. If not, your business might just be at loss without any gain. These risks are categorized into different ways. The risk is that your competition will gain advantages over you that will prevent you from reaching your end goals.

The first one is natural disaster

Some risks are caused through natural disaster such as flood, storm, heart quake, and so on. Natural fires breakout.

Another risk is called the Pandemic such as flu, human influenza, Ebola, cholera and so on.

Government policy

Government policy is another type of direct risk such as cultural belief, restrictions, laws, tax and any other policy laid down by Government which can negatively affect your business.

Other risks are economical and financial such as increase in tax rates, low customers, shortage of cash flow and so on.

Technology business risks

business risk

Technology is also among the types of risks such network issue, outdated equipment and so on.

Environmental

Environmental impact such as climatic condition, oil spillage and pollution is also categorized as risks to business.

Health problem such disease cause by the environment of work place, accident by equipment, and others.

Business risk to company Property

such a damage of equipment, burst of pipes, vandalism and so on are also part of the risks. Office equipment insurance quotes are available from reputable insurers in South Africa

Insecurity is part of risk you need to protect from your business such as terrorist attack, frauds, hijack stealing of cars, strikes attacks, riots unrest and theft of intellectual property.

Indirect business risk

business risk

This category of risk is not taken serious but kills businesses. This is why they have called it indirect risks. If care is not taken seriously, risk like this will have ruined your business before you realize it.

That is why we must be very careful in looking at a business before investing cash into it. For instance if your business is located far from the consumers you might be spending most finance on transportation of goods. Having fire insurance policy in place can help in a event of fire breakouts or explosions

Indirect Business risks

Bad roads

if your road is bad it might affect the supply of product, transportation, proximity to consumer and so on.

Customer relation

if there are no good relationship with your customers you will be experiencing low demand.

Staff welfare

you must also take good care of your staff (employees) in order to motivate them. If this is done it can lead to growth of your business.

However there are insurance policies available for all these risks, even though there are other risk we did not discuss. You need to consult the experts in order to put you through.