Businesses, both large and small, face a number of risks. Those risks can change on a daily basis depending on your industry. Identifying those risks and having a risk management plan to deal with them can help minimize the impact.
Canadian companies need to understand the most pressing risks to their business. Here are a few key risks your company may face:
Cyber risk
There are usually two types of companies: those that have suffered a cyberattack and those that will be attacked. Cyber risks shouldn't be ignored so you should take the steps necessary to protect your network. If data belonging to you or your customers are successfully stolen, it can hurt your company's reputation and lead to a decline in business. Cyberattacks are expected to grow as criminals become more sophisticated.
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Supply chain disruption
Businesses across the country are looking to reduce costs by finding suppliers around the world. However, global suppliers may be subject to issues Canadian suppliers might not face. Also, the more suppliers you have, the more likely it is different factors will disrupt your supply chain. For companies that use just-in-time manufacturing, a disruption can have serious consequences.
Foreign exchange risk
Many small businesses are selling their goods and services outside of Canada or they're finding global suppliers. However, exchange rates can fluctuate wildly over the course of a day, a week, a month, or a year. The amount your company pays or receives may vary widely, which can have an impact on the bottom line.
Variable commodity prices
Commodity prices are rarely ever the same every day. They're difficult to control because prices are typically driven by national or international economic factors. Commodity price volatility will mean different things to different businesses. A decline in prices can have negative effects on commodity producers, but rising prices may impact almost all businesses that purchase commodities.
Digital disruption
Many Canadian companies believe they won't be affected by digital disruption. Unfortunately, most of them are wrong. Sticking to the status quo for too long can be detrimental your organization's future. Managing risks related to digital disruption can be difficult because it may affect certain businesses in more ways than others.
To learn more about these risks and how you can manage them effectively, read our 7 Key Business Risks report.
For more information on how a risk assessment can help reduce your business risks, contact us.
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