For tech startups and established businesses alike, risk reduction plays a powerful role in long-term success and scalability. By establishing proactive risk reduction strategies in the early stages of development, you can set your business up for years of sustained success.
6 Ways Your Tech Company Can Reduce Risk
There are certain risks that businesses should be exposed to in order to enjoy the possibility of a tangible reward. But then there are those threats that present significant risk without the promise of any reward. And it’s risks that your company must be diligent about avoiding. Here are some steps you can take:
- Proper Risk Assessment
Ignorance may be bliss, but it’s also incredibly dangerous. Just because you choose to remain unaware of a particular threat, doesn’t mean the threat doesn’t exist. It’s up to you to proactively identify risks and neutralize them before they become problematic. You can do this through targeted risk analysis.
There are two major types of risk assessments. The first is quantitative. Quantitative risk analysis uses mathematical probabilities, data, and facts to reach conclusions. It’s the approach actuaries use when evaluating the risk of an insured party. The second is qualitative. Qualitative risk analysis is much more subjective than the previous approach, but can lead to a deeper understanding of how your business is functioning in a living, breathing environment.
When assessing the risks your business faces, it’s helpful to use a combination of quantitative and qualitative methods. It’ll give you a much clearer view of the situation at hand.
- Automation Software
Automated software doesn’t exist for the sheer purpose of reducing costs and enhancing convenience. In many cases, these automated solutions exist as a way of reducing risk – particularly risk that stems from human error.
Now that you’ve conducted risk assessments and identified your biggest problem areas, you can search for automated solutions that are designed to mitigate, offset, or insulate your business from these pointed risks.
- Proper Signage
On a very practical level, you need to think about your office, facilities, parking lots, and any other premises that your employees and customers use regularly. You’re responsible for each of these areas and there’s significant liability associated with a lack of proper care.
In terms of reducing the risk of physical injury within your company, implementing building signage – like exit signs, OSHA signs, fire and emergency signs, glass door decals, and security mirrors – can go a long way towards making people aware of certain risk factors. It’ll also provide some protection against lawsuits, should there be any issues.
- Advanced Cyber Security Policies
As a tech company, you face a particularly high risk of experiencing a cyber attack or hack. If you sit back and wait for something to happen, it’ll be too late. You need an advanced cyber security policy in place to insulate your organization from these threats.
A robust cyber security policy will consist of regular software and system updates, thorough security audits (including social engineering), employee education and training, regular data backups, and physical security of information assets.
- Better Employment Contracts
You and your employees need to be on the same page, but don’t assume that you are. Issues occur, feelings get hurt, and employees will often do things for selfish gain. The ideal way to prevent and/or mitigate these risks is to develop strong employee contracts that address as many problem areas as possible.
- Adequate Business Insurance
No matter how hard you try, there are certain risks that you can’t completely eliminate or reduce. Whether it’s a natural disaster or sophisticated external attack, sometimes the best thing you can do is purchase insurance policies to limit damage. Common types of business insurance include professional liability insurance, property insurance, workers’ compensation insurance, product liability insurance, vehicle insurance, and business interruption insurance.
Better Safe Than Sorry
Whether it’s physical risks – such as injuries – or cyber risks – like the threat of a hack – it’s always better to be safe than sorry. It costs far more to recover from a mistake than it does to prevent it the first time around. Invest your resources wisely and develop a strong company that’s safe, secure, and above reproach.