Feb 15

Risk is a part of business. It can be both within the control or beyond the control of the entrepreneur. To eliminate or minimize such risk, the entrepreneur must have  a risk and insurance program. The common typers of non criminal business risk are:

  1. Fire. This is the first fera of any business owner. So, they eliminate their risks through fire insurance. With such insurance, owners can recover their financial losses. However, there are things which a fire insurance cannot protect, like lost customer, record and other valuable assets. A much better risk protection program is fire prevention measures.
  2. Natural calamities. These can ruin business. Floods, typhoon and earthquake are in the most cases not included in the insurance coverage. Entrepreneurs can only  minimize risks from natural calamities by proper choice of locations which are free from such disasters.
  3. Personal liabilities. These are business connected risks. For instance, a customer is injured inside th store. A customer got sick in eating the product of the entrepreneur, Such incidents may resort to law suits. Such risks can be prevented or minimize by proper facilities or quality control program.