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3 things to keep in mind when creating a risk management plan

It is no easy task to be a business owner in the Chicago area. Workplace accidents, terminations, employee misclassification, and client, vendor and customer disputes are just some of the many business challenges that can make or break an organization's success. Some matters are not easy to resolve; others may seem frivolous. A good risk management plan can help you minimize the impact they have on your company’s reputation, operations and bottom line. 

Not every company that encounters litigation issues can rise above them. Here are some things to keep in mind when creating your business risk management plan. 

1. Do not cut corners 

Cutting corners and delaying on certain aspects during the formation stages can lead to lawsuits down the line. Structure your company correctly and take time to strengthen its foundation to ensure compliance with local and federal laws. Do not forget to include a contingency plan for risk management. 

2. Identify potential problems early

You cannot predict with absolute certainty the challenges, but having a plan can keep you from making poor business decisions. Anticipate potential matters that might cause disputes and problems with your workers and operations. Put together a multistep plan that outlines the different ways you and the involved parties can resolve disputes outside of the courtroom, such as arbitration or mediation. 

3. Evolve from past challenges 

Because of the type of business you are in, you may see the same issues cropping up repeatedly. Take time to assess past events and learn from your mistakes. Keep data on those events and use them to revamp your resolution the next time to gain a better outcome. 

Not all business risks are inherently bad. However, they do have a short and long-term impact on the business landscape. Your company’s longevity and success are only as good as its risk management plan.

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