Risk Managment Cultures in Small Business

Developing a risk managment culture in small companies is a challenge. Most small businesses are run and managed by the owners who are also the chief risk officer. The day to day work that goes into just keeping the doors open, makes risk management seem unimportant. Also there is a misconception that insurance policies they buy cover everything so they can somewhat relax when it comes to risk. This is the challenge for risk advisors to small firms. These companies have as much risk complexity and exposure , relative to their size, as do the big firms. Educating and implementing risk approaches to problems is an uphill battle for small companies and owners. Risk professionals have to take a more active role in these companies and "drip" the information to them instead of feeding it in large doses. One thing is for sure, in order for small business to thrive and survive in this challenging economy, risk management has to be part of their buisness plan. until next time be careful out there and know your risks. K

Blog by  G. Kevin Nemith  Small Business Insurance and Risk Specialists  Delaware

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