How Often Do New Business Risks Arise? Is It Important to Do a Risk Assessment?

Businesses must be aware of their risks and exposures. A company’s risk profile can be as unique as its operations and personnel, as even those in the same industry or of similar size may need to account for different threats. That’s why your organization cannot afford to cut corners when assessing and addressing risks.

Why Are Risk Assessments Important?

These processes are integral to your company’s risk management and loss control efforts. Without appropriate risk assessments, you might be grossly underestimating the potential fallout from accidents and unexpected situations. As such, you could lack the funds and resources to effectively manage the aftermath of various scenarios and potentially face financial ruin.

A suitable risk assessment typically entails comprehensive consideration of your company’s circumstances, including relevant legal requirements and industry standards, and calculated resource allocation. By properly tackling risk assessments, your business can enjoy financial security and peace of mind while focusing on its mission and growth.

How Often Should My Business Assess Risks?

Even if you’ve already conducted an in-depth risk assessment, your company’s circumstances and subsequent risks may be constantly in flux. As you grow, pivot, or adjust to changes around you (e.g., new legislation and regulations), revisiting your risks and exposures is critical. Generally, conducting a risk assessment at least once per year is advisable.

Additionally, you should reassess your risks following significant changes in your business or the world around you, such as in response to the following situations:

• Leadership changes
• Rapid growth
• Changes in your mission
• Starting to produce or sell new products
• Wars
• Pandemics
• Natural disasters

We’re Here to Help

At GEC Insurance Services in Arlington, TX, we can help your company understand and address risks through ideal coverage solutions. Contact us today to learn more or to compare personalized quotes for optimal policies.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.