Staying aware of business risks is crucial if you own a business. Risk assessments can reveal these risks so you can prepare and avoid threats that might disrupt your business. The Brent Young Agency, LLC team in Manchester, CT, offers these risk assessment tips.
Steps for Conducting a Risk Assessment
Step 1: Identify Potential Threats
Identify potential threats, such as failing technology, weather, and employee misconduct. Consider possible infrastructure damage, which could impact your ability to continue normal operations.
Step 2: Assess the Probability of Those Threats
Rank risks unlikely to occur as zero, somewhat likely threats as 2-4, and very likely threats as five. Record these numbers for each potential threat.
Step 3: Establish the Severity of Any Threats
Consider the potential damage of the listed risks. For instance, in a storm or other significant incident, would it damage only one floor of the building or the entire structure? Assign a severity rank from 0 (low) to 5 (high).
Step 4: Calculate Your Overall Threat Risk Value
After scoring the severity and probability of each threat, multiply these two values to determine your overall threat risk value. If the score is between 17 and 25, prepare to address these issues as soon as possible.
Step 5: Consult an Insurance Agent
Speak with one of our experienced agents at Brent Young Agency, LLC in Manchester, CT. They can provide you with a risk review, look at your current policies, ask questions, and suggest any additional policies to ensure you have the right insurance coverage. Contact us today to learn more.
