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It is natural that a firm will face risks in their lifespan. However, while the running of a business is a risk in itself, it is only logical that the firm should be prepared for the potential risks that it could face. Based on the size of the risk, it could have the capacity to destroy the business and to force it to wind up or go into bankruptcy. Even if the company does not deal with insolvency, it could be rather costly and time consuming to solve or repair the risk. Hence, listed below are some of the most common risks faced by businesses and how they can be avoided or prepared for.

Risks of physical nature

It is mostly the building or the premises of the business that poses a physical risk. Wear and tear of the building should be observed and maintained quite closely as employees and other workers as well as clients could be at risk and if it’s left unfixed, it could serve to be more costly and time consuming to have it repaired. Buildings are also open to the risk of fires or explosions. All employees should be trained as to what they should do under the circumstances where there is a danger. They should also be prepped with the exact location of the building so that anyone can call 911 immediately. Training should include the awareness of the exit locations as well. It is usually mandatory for all buildings to have fire extinguishers as well as sprinkler systems and fire alarms as well as smoke detectors.

Financial risks faced

Some firms take on more than they can handle. While a fast cash loan in Singapore may be the start, it may start piling up until the loans cannot be paid back which could lead to the business having to sell its assets and ending up insolvent.

Risks faced due to humans

There could be employees who are involved in drug abuse or alcoholism and it would have a negative impact on his work as well as the whole workforce. Such employees tend to be linked to embezzlement and theft within the workplace at times as well and may obtain a instant cash mortgage under the company name as well to ensure their pleasures are met. This should be taken seriously by the firm. Some businesses even provide insurance coverage for counseling and rehabilitation.

Risks with regard to location

This is usually related to natural disasters and possible man related disasters that occur outside the premises which could have a possible impact on the business. Potential hazards include hurricanes, tornadoes, floods, earthquakes, tsunamis and other natural disasters. It could also include a fire that spreads to the building. Employees should be trained on how to exit the building under such circumstances which is similar to a fire drill and this should be practiced every once in a while even if such a threat is not faced.

 

March 22nd, 2016

Posted In: Business Services