Your business started as a small idea that has now grown into a successful enterprise. As your business grows, it also becomes more vulnerable. You need to protect your business from the many potential disasters that could harm it. These potential threats range from financial, technological to reputation threats. Some of these potential threats could result in a lawsuit one which your business may never recover from. You need to be prepared and stay vigilant by putting in place prevention strategies.
Protecting your Business Against Technological Threats
To survive in the emerging competitive market, businesses have invested in technology infrastructure to gain a competitive advantage over other business. While technology presents a lot of growth opportunities, it does also present with threats that could affect your business. Such threats include:
- Data breaches
Today, companies have lost millions of dollars as a result of data breaches through the use of malicious software that destroys their programs and code generators consequently forcing them to lose their position in the industry. Malicious codes comprise the largest number of cyber attacks today.
The code can be used to steal or delete critical files or information in your business. The stolen files or information can be used to extort money, and if released to the public, lawsuits could be filed against you especially by your clients.
To protect your business from data breaches, hacks or malicious code, install and use antivirus programs, firewalls, and spyware programs on all the computers in your business. The easiest way to do this is to get a complete, all-in-one protection package, like ESET Secure Enterprise. Install a firewall on your servers and computers as a security measure. Ensure that you carry out consistent updates to all computer software.
- Stolen devices
These include laptops, hard disks or mobile phones that you use for personal use and contain business data or information. A stolen or a lost laptop may require a business to contact all their customer to notify as their personal data may have been stolen in the process. Such an incident can result in legal liability and a loss of confidence in your business or even far worse a damaged reputation.
If you store your customer’s data on a portable device like a laptop or a mobile device, always make sure the data is encrypted. This ensures the data is unreadable in any case the device is stolen. This makes sure that the information within your business stays protected.
Financial threats to your business include fraud, lawsuits, and theft. Fraud and theft can happen to any business in many different ways. Fraud leaves your business’s revenue, reputation, and long-term stability at a very high risk. Other than conducting the usual inventory and statement checks take action to establish a code of conduct. It states the unethical and illegal behavior that will not be entertained by your business.
Also, set up organizational checks and balance. This ensures that no one single person controls the financial aspect of your business. Avoid allowing the same employee to manage payable and receivable accounts.
Insure your Business
Insurance coverage can be crucial to your business’ continued success. You can buy property insurance policy, liability policy, data compromise coverage and coverage relating to your employees.
Property insurance protects your tangible investments in case of fire or a hurricane. Liability coverage protects your business in the occurrence of a lawsuit. Your company could be sued as a result of injuries or accidents, product liability, and errors or negligence. A data compromise insurance coverage protects your business against associated legal and cost in the event of a data breach, or personal information is stolen or released to the public.
Protecting your Business Against Expanding Too Fast
In the business world big is often mistaken for good. Growth is important for every business, but a rapid and unpredicted growth can make it difficult for your business to fulfill its purpose. A rapid expansion may force your business to lose purpose by transitioning it to quantity over quality approach.
You can maintain the growth of your business planning on the future rather than be focussing on present trends. A deliberate and a steady maturation with a long-term focus is best for a successful and sustainable business.
It is also important to protect the reputation of your business by having a contingency plan in the development of a crisis.