Calculating Risks that May Happen to Your Business

House Flood

Owning your own business comes with a lot of responsibility, including making sure that your business is protected in any unexpected situation. While there is no way to prevent any peril at your company, there are some steps that you can take to ensure that you are prepared.

Unexpected situations at your business can create a crisis, which will threaten the viability of your business as a whole. Using the formula threat x vulnerability x impact = risk, you can figure out just how much damage an unexpected event could do to your business. In order to make sure that you know what each part of the equation is to ensure that you are ready for it, make sure to remember the following:

  • Threat – what is the likelihood that an event, either manmade or natural will occur?
  • Vulnerability – what are the gaps or risk factors that will increase the likelihood and the impact of the event on your business?
  • Impact – what is the cost or impact that an unexpected event will have on your business, and how will it negatively affect your employees and interrupt the business process?
  • Risk – knowing the vulnerabilities, threats, and potential impacts will help you have a broader understanding of the risks of your business.

Having a disaster preparedness plan can help to make sure that you are ready in case of any unexpected situation. It is also important to make sure that every employee at your company knows what to do in case of a disaster to keep them safe.

For all of your commercial insurance needs and to ensure that you have the right amount of protection in any situation, contact DG&M Agency in Rochester, New York. As an independent insurance agency, we will work with you to ensure that you have the perfect amount of coverage for any unexpected situation.