What is a Risk Assessment and Why Do You Need One?

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In the United States alone, there are an estimated 7.1 million people who have a net worth of at least $1 million.

If you’re among these high net worth individuals, you likely already know that you and your business can be targeted by violent individuals.

For that reason, you need to take steps to ensure the safety of you, your business, and your family members. One of the best ways to do that is to do a risk assessment.

Keep reading to find out more about how risk analysis could save your life.

What is Risk Assessment?

Risk assessment is a formal report that documents the potential risks to your company and clearly outlines the steps you’re taking to minimize those risks.

You should have a new risk analysis performed every year. This will allow you to quickly find new issues and see how old problems have been solved. You’ll also get the chance to change how you use your resources for risk management. 

What is Evaluated?

Your industry will determine what types of risks your business may face. This will also determine the strategies used for analysis. However, here are a few areas that may be evaluated in a risk assessment:

  • Project failures
  • Financial problems
  • Legal liabilities
  • Accidents and natural disasters
  • Cybersecurity
  • Deliberate attacks

Deliberate attacks could be against your finances or reputation. However, they could also be physical against your buildings, products, or personnel.

Whatever form these attacks take, the more you know about them, the better equipped you’ll be to prevent them. A formal risk assessment is what will check every angle for you.

How Can Risk Analysis Help You?

Now let’s take a look at just two of the ways having a risk analysis done can help you.

Learn About New Risks

If you knew someone was going to break into your office on a certain night through a certain door, wouldn’t you do everything you could to prevent that? However, if you don’t know about a risk, you can’t do anything about it.

Risk assessment brings in an outsider who can quickly identify areas of weakness in your infrastructure. They’re trained to find new risks you may not have considered which will help you minimize the chance of them happening.

Create a Risk Management Plan

Once you know what risks your company is facing, you can identify the highest priority risks. This will allow you to wisely use your company’s resources in a way that will tackle the most potentially-harmful risks first.

Prevent Attacks

When put together, learning about new risks and creating a risk management plan will help you prevent attacks against you, your employees, and your company.

Need Help with Risk Analysis?

Now you know what risk assessment is, and how it can help you protect yourself, your family, or your business. As you can see, it’s essential to understand the risks you’re facing.

To get a formal risk assessment, contact us today. We’d be more than happy to help you determine what you may be facing and set you up with a plan to help you minimize those risks.