When protecting your business, you can never be too careful. Even the most well-run and successful companies can get blindsided by a threat they didn’t see coming. That’s why it’s essential to always be on the lookout for potential dangers and take steps to mitigate any risks.
Here are some statistics that illustrate the importance of protecting your business:
- 1 in 5 companies will experience a data breach in any given year.
- 60% of small businesses on the other end of data breach exposure will go out of business within six months.
- The average cost of a data breach is $3.8 million.
These statistics make it clear that protecting your business is not only essential but can also be critical to its survival. By securing your company’s digital infrastructure, you can help minimize the risk of a data breach and keep your business running smoothly.
However, there might be some risks that are more difficult to anticipate. Here are some of the lesser-known threats that could blindside your business.
Reputational Damages
When it comes to business, reputation is everything. A strong reputation can help a company attract customers and investors, while a damaged reputation can lead to decreased sales and missed opportunities.
There are many examples of businesses that have suffered from reputational damage. Here are just a few:
- United Airlines – In April 2017, United Airlines faced a PR nightmare after a video emerged of security officers forcibly removing a passenger from an overbooked flight. The incident caused a public outcry and widespread criticism of the airline, which resulted in a decline in stock prices and lost revenue.
- Wells Fargo – In September 2016, it was revealed that Wells Fargo opened unauthorized accounts for its customers. This led to investigations by government agencies and consumer lawsuits, which caused significant financial and reputational damage to the bank.
- Volkswagen – In 2015, Volkswagen was caught rigging its diesel engines to cheat on emissions tests. This led to investigations by government regulators, a massive recall of vehicles, and considerable financial losses and damage to the company’s brand.
There are many other examples, but the underlying message is clear: reputational damages can significantly affect businesses, and taking steps to protect your company from any potential damage is essential. Here are a few steps to consider:
- Regularly monitor news and social media for potential issues that could arise.
- Establish clear protocols to respond if a reputational crisis happens.
- Take steps to prevent negative press, such as having an active PR campaign or providing accurate information about your business.
- Train employees on the importance of customer service and maintaining a good reputation.
These proactive steps can help keep your business from being blindsided by reputational damage.
Natural Disasters
In addition to reputational damage, natural disasters can cause businesses unexpected losses. Floods, earthquakes, and hurricanes can have devastating effects, from physical property destruction to operations disruption.
It would help if you had the plan to minimize the risk of unexpected losses due to natural disasters. Companies should create an emergency response plan that outlines how they will handle different scenarios, such as power outages or storms. They should also invest in the appropriate insurance coverage and explore backup solutions for critical operations.
These steps can help keep your business running smoothly even when Mother Nature throws a curveball.
Divorce
Your business might be going well, but divorce could suddenly throw a wrench. In business divorces, the owners must agree on dividing up the company’s assets and liabilities. This process can be time-consuming and costly, with both parties facing potential losses.
To minimize the risk of disruption caused by a divorce, you must create a clear exit strategy in advance. Many businesses have buy-sell agreements that outline what will happen if one of the owners decides to leave or gets forced to leave due to personal issues like death or disability. It’s also important to keep accurate records of all financial transactions and other relevant documents so you can easily access them in a dispute between partners.
A divorce attorney can help you create a legal exit strategy for your business and provide more advice on protecting it from divorce-related issues. These steps can help ensure your business is not blindsided by unexpected divorce proceedings.
Final Thoughts
By taking the time to plan, businesses can avoid potential disasters down the road. From reputational damage caused by the lousy press to natural catastrophes and divorces, many risks could cause unexpected losses or disruptions. It’s essential to take steps now to prepare so that you won’t be caught off guard in the future. With the proper preparation, you can keep your business safe and secure no matter what comes your way.
