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The Most Dangerous Things for Businesses

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StrategyDriven Risk Management Article | The Most Dangerous Things for Businesses | Business RiskIf you are in control of a business, no matter how large or how small it is, you likely have problems that keep you up at night. There will always be inherent risks to any business-owner, which typically runs proportionally to rewards; everybody knows that entrepreneurs take big risks by not being employees, but they do so because they anticipate a payoff. In business, you should be looking for ways to minimize inherent risk at every opportunity. Here are some of the most dangerous things for businesses.

Non-Paying Customers

The world of commerce is relatively simple: a customer buys a product by giving you money and leaves with a product in a simple exchange. Unfortunately, this is not how most business operates. Many business transactions involve large sums of money, and as a result, customers become more likely to complete a transaction over several payments instead of one lump sum.

Not everybody pays on time, however, and this isn’t an unusual encounter in the business world. However, problems arise when non-paying customers build up or when customers try to avoid paying altogether, as Donald Trump’s power asymmetry negotiation style is famous for. This can have a major impact on cash flow, which can decimate most businesses. When activist investors take over a company, one of the first things they do is call in any remaining debts to the company with the help of a good legal team.

Fires

A wise man once said that the rich should fear two things: gambling and fire. Fire has the potential to destroy any business, even one which isn’t physical — a fire in a server room can wipe out an entire online enterprise if the servers do not have backups. A glance at a list of businesses that were destroyed during a town’s fire in Tennessee in 2016 would send shivers down a small-business owner’s spine. Fires are impossible to completely prevent, but with regular fire protection inspections and, of course, good preventative measures like working carbon monoxide detectors can mitigate the risk massively.

Legal Action

A lawsuit can be an exceptionally damaging thing for a company to deal with, especially if the business is small. In America, lawsuits have become a very common part of dealing with competition, especially when a larger company is fending off a smaller competitor. In these business skirmishes, whoever is willing to spend the most money can often bankrupt their competitor, causing many small companies to pay special warning to cease and desists from larger businesses.

Legal action can also be completely justified if you have, through negligence, committed a fault that can put an employee or customer in harm’s way. This is especially dangerous for companies that do not have a good vetting process for their managerial employees, as a bad mistake from a managerial representative of a small business could cause a lawsuit that could bankrupt the business completely.

Preventative measures hence become incredibly important. They ensure that all employees and business operations adhere strictly to legal guidelines; also, health and safety procedures can be the difference between a healthy, long-lasting business and a business with good prospects that made a mistake and went bust.

5 Key Fire Safety Measures for Small Businesses

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StrategyDriven Risk Management Article | 5 Key Fire Safety Measures for Small BusinessesIf you’re a fledgling business owner or are in the early stages of setting up premises for a new venture, one aspect you are likely not thinking about a lot is fire safety. Starting a new business requires a hefty amount of thought and planning, but most of that will be focused on acquiring customers, financial planning, marketing strategies, overheads, and so on.

Once you’re up and running, ensuring that the bricks and mortar of your small business are physically and financially protected from fire is essential. Below are five safety measures to implement as a small business.

Identify Fire Hazards

The importance of a fire risk assessment cannot be underestimated. According to the National Fire Protection Association (NFPA), there are roughly 37,000 fires on manufacturing and industrial properties every year in the US, resulting in nearly $1 billion in damages. The first place to start when conducting a risk assessment is to evaluate any fire hazards around the facility, such as electrical hazards or combustible and flammable materials. It is also a good idea to review all areas of the office and consider how fires may start because of surrounding materials.

Identify People at Risk

Once you’ve identified potentially hazardous areas or materials, you will also need to evaluate any people who are more at risk during a fire. For example, do you employ anyone who may be visually or physically impaired? Or do you have people whose roles put them at additional risk to fire than others? Identifying these people means you’re able to put secure plans in place should a fire strike.

Invest in Fire Protection Services and Products

It goes without saying that installing the necessary fire protection products around the office is a necessity. Items such as fire extinguishers, fire sprinklers, alarms, emergency lighting, and the like will all need to be evaluated and installed. If you are unsure about how to go about this, try consulting experts at a fire protection services company like APFE.

Plan and Practice a Fire Exit Strategy

Every business or office should have a sound fire exit strategy and this should be practiced regularly. All employees need to be aware of the main exit points and what is expected in the event of an alarm. The Occupational Safety and Health Administration (OSHA) require all companies to have evacuation maps and visual communication so that staff can quickly refer to guidance if needed. Facilities are also required to have two exit points and paths that are clearly identified.

Train Staff in Fire Awareness and Safety

Creating a fire safety plan for your business is not enough. You will need to train your employees so that they clearly understand the risks of a fire, how they can prevent fires, and what they need to do during an emergency. As fire safety training is a legal requirement, there are various fire safety eLearning modules that your staff can complete online at any time.

The risk of fires is a very real and serious matter to consider when setting up and running a business. To ensure that you and your staff are safe, refer to the above tips and take the necessary precautions. Otherwise, the danger to life and financial consequences for your business could be huge.

Is Your Business A Target For Criminals?

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To answer the question of the title simply, it should be stated that: yes, businesses are more at risk of being targeted by criminals than private citizens and public sector entities. This is simply because it’s assumed there is more of value to take from a business. As such, we’re going to look at the major criminal risks facing your business and how to make sure that you’re protected.

Theft

If you have any physical assets of worth, be they retail goods, business equipment, or digital hardware, then there is a real risk of theft. Investing in the physical protection that you need is crucial. Smart CCTV systems linked up to digital alarm systems can help you spot and act on signs of theft as early as possible. Ensure that you’re protecting against internal loss caused by theft from employees, as well. Use an inventory management system to ensure you track every asset and know where it is located at all times and who has access to it. For higher value assets, consider using GPS trackers so that, even if stolen, you can track them down and get them returned in more cases.

Fraud

For businesses that conduct any kind of high-value transactions, there is always the risk of fraud. Thankfully, there are a lot of ways to protect yourself from it, as well. Ensure you safeguard access to any financial accounts, by making sure that they require multiple layers of authentication to access and by doing employee background checks to make sure you’re not being targeted by career criminals. Investigation software can help you make better use of the reams of data that modern businesses tend to have to deal with, making it easier to find the facts behind a case of fraud. Lastly, make sure that you invest in fraud protection insurance so that any costs you do accrue can at least be recouped.

Cybercrime

More and more businesses are relying on increasing levels of digital technology, meaning that we tend to store more valuable data on digital systems and also need them to carry out core business functions. As such, preventing hacking attempts is crucial. Make sure you work with a digital security expert to find and close vulnerabilities in all your hardware, software, and networks. Teach your employees the importance of good cybersecurity practices such as password security and never leaving their terminals open and accessible to anyone who might find it. One of the latest threats, ransomware, also shows the importance of investing in enterprise-strength anti-malware software. There is a digital threat race ongoing, and you need to be continually improving your defenses to make sure you don’t get left behind.

Assume that your business is at risk of being targeted by criminals, then figure out what those risks are and make sure that you’re doing what you can to protect against them. Whether it’s theft, cybercrime, fraud, or otherwise, you can’t let your business stay vulnerable. Complete your risk assessment and find what kind of protections you must invest in.

How To File A Lawsuit In A Business Disagreement

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StrategyDriven Risk Management Article | How To File A Lawsuit In A Business DisagreementAre you having a business disagreement with another business or individual? Have you tried everything you can to resolve the issue, but without any success? If so, the next option may be to file a civil lawsuit.

This may seem like an extreme option, but in reality, civil lawsuits are fairly common. In fact, over 40 million civil lawsuits are filed every year in the USA, and there are over a million lawyers to help deal with the lawsuit process.

So if you need to file a lawsuit, you’re not alone – but it is important to make sure you know what you’re doing before you get started.

Here’s everything you need to know about filing a lawsuit in a business disagreement.

Who Is The Defendant?

Is the defendant a business, an individual, or both? It is important to know who you are filing a civil lawsuit against before you do it, as it can help to determine the amount you could win. It can also help you to decide if it is worth it; generally, it is much easier to file a lawsuit against an individual, but if you have a strong case and a good attorney, you can certainly win against a business.

What Do You Expect To Get From The Proceedings?

Filing a civil lawsuit comes with legal fees and court costs. If these costs are more expensive than the amount you hope to win, it may not be worth pursuing the case – but if you could stand to win big, you may wish to continue. So take some time to think about how much the individual/business cost you, and then compare this cost to the court fees.

Is The Defendant Harming Your Business?

If they are harming your business, you will need solid proof, such as an expert witness or video footage of the harm they cause. Without this proof, it will be difficult to win in court, so take some time to gather up evidence and witnesses before filing a claim.

What You Need To Do: Hire An Attorney

The first thing you should do is speak to an attorney about your case. They will be able to review your case and decide if you should proceed, and they can also represent you in court. We suggest finding an attorney who has experience in the specific area you are dealing with (such as employment law or contract law).

Contact The Correct Jurisdiction

Once you have weighed up your options and gathered evidence, you can contact the right jurisdiction. This often depends on where the event took place, and it can also depend on the type of case. For instance, you may need to speak to a small claims jurisdiction or exclusive jurisdiction. You can find out more about these options by contacting your local court for more information.

Write A Demand Letter

Once you have contacted jurisdiction, you can write a demand letter. This letter will explain your case and how you want to be reimbursed, and this will be reviewed by both the defendant and the court. Once the letter is written, you can fill in court forms and register the claim (which normally costs money).

Set A Date With Court

Next, the defendant will be served with the demand letter and a date to appear in court, and then they have some time to decide how they want to proceed. For instance, they may want to build a defense, but they may also decide to settle out of court.

Secure Transmissions: 5 Tips for HIPAA Compliant Faxing

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StrategyDriven Risk Management Article | Secure Transmissions: 5 Tips for HIPAA Compliant FaxingHealthcare workers need to keep the privacy of their patients’ information in mind at all times. That goes for not just in-person communications with patients, caregivers, and other providers but also for information sharing processes like faxing. Since most healthcare organizations still send faxes on a daily basis, all workers should ensure compliance with the Health Insurance Portability and Accountability Act (HIPAA) at all times. Read on to find five tips for how to ensure compliance.

Switch to a HIPAA-Compliant Fax Service

Using traditional fax machines made for general use is a great way to wind up in a world of legal trouble. Healthcare facilities that still use traditional fax machines should make the switch to a secure web-based hipaa fax service immediately.

Specialized online fax services designed for the healthcare industry offer a number of security features to ensure HIPAA compliance. They use secure socket layer protocols, at-rest encryption, user authentication, and advanced data center security to ensure that patients’ protected health information (PHI) cannot be accessed by external actors. A good fax service will also keep document transmission logs and record log on/log off events associated with IP addresses for an added level of security.

Never Leave Faxes Unattended

Human error is one of the most common sources of HIPAA violations. Healthcare workers should be trained never to leave faxes that contain PHI or other sensitive information unattended. They must stay at the machines until the fax goes through, then remove the document immediately.

Before sending the fax, healthcare workers should also call patients to ensure that their fax machines are in protected locations. In this case, a protected location can be considered any fax machine located out of the line of sight of the public.

Don’t Forget the Cover Sheet

HIPAA requires healthcare providers to include a cover sheet each time they transmit protected health information. There is no official standard for what must be included on the cover sheet, but at a minimum, it should include the patient’s name, the receiver’s name and fax number, the sender’s name, fax number, and organization, the date and time of sending, and the HIPAA disclaimer. Cover sheets must be used not just when sending traditional faxes but also when using online fax apps, so make sure the app has a protocol in place for attaching cover pages when switching to HIPAA-compliant fax service.

Keep an Audit Trail

Healthcare providers must keep detailed records of all the activity on their systems, whether they use online fax apps or traditional machines. Switching to a HIPAA-compliant fax service makes keeping audit trails much easier since the app should be able to log activity automatically.

HIPAA requires healthcare providers to keep records of audit trails for at least six years. Healthcare facilities that use online fax services should keep raw records for the first six months to one year before compressing them.

Be Aware of PHI Stored Locally

Most healthcare data breaches occur when malicious actors access patients’ PHI on local devices and portable media like laptops and removable drives. Healthcare facilities that are unable to prevent these data breaches may be fined. It’s better to use a cloud-based service that automatically encrypts all documents than to keep on unsecured and unencrypted local devices.

The Bottom Line

HIPAA was designed to protect patients’ sensitive information. Healthcare facilities that do not follow these regulations can be fined and will face substantial damage to their reputations. Make sure all healthcare providers are on the same page about ensuring compliance while faxing sensitive documents.