[INFOGRAPHIC]: 4 techniques of risk management

If left unaddressed, risks can lead to business disruptions, some of which enterprises may not be able to recover from.

Thankfully, there are ways to identify and manage threats. Here are four key approaches you can take to help minimise or eliminate business risks:

There are four ways you can manage risk.

1. Avoidance

Assess your practices: Are any of them putting your company in jeopardy? Some operations may lead to legal or financial trouble, so you should see what you can do to correct them.

Keep in mind that there are such things as "good" risks, such as the ones found in investment opportunities. "The greater the risk, the greater the reward", as the saying goes. Avoiding ventures for the sake of staying safe isn't always the best option.

2. Reduction

Take precautions to decrease the chances of an incident occurring. For example, placing a wet floor sign near a mopped area will notify customers and other visitors of the risk, thus preventing a slip-and-fall accident.

In many cases, measures such as these are required by law. Reduction tactics are often the best line of defence and make sense, from a business perspective.

3. Transfer

You can quickly eliminate a wide range of risks by transferring them to another party. Obtaining comprehensive business insurance is one way you could do just that.

This technique is one of the most realistic of the bunch because it acknowledges that incidents, sometimes occur, no matter how many precautions companies take. Business insurance allows you to handle these challenges as they come.

4. Acceptance

There is as such a thing as taking a hit. You can gamble on the chances of certain risks not culminating into problems - you'll simply have to deal with the consequences if they should.

However, this strategy is incredibly risky because you have no way to protect yourself. Leaving vulnerabilities unchecked isn't recommended.

Which approach is right for your business? Make an objective decision, and determine which events you will need to protect yourself from.

Elders Insurance has helped businesses develop risk management plans in the past, and can design an insurance package that's right for you.

For a consultation with one of our agents, contact Elders Insurance today.