Your business is constantly facing threats from internal and external sources. Without keeping a check on both types of risks, the business could crumble under the pressure from these two major sources of risk. GLAC Consulting will assist your business in effective risk management to increase the profitability of your business. Call us today to learn more.
Internal Threats and Risk Management
During everyday business operations, companies are constantly facing risk from various internal sources. These internal sources of risk are present in every company. It’s the steps that a business takes to manage, maintain, and control its internal risk sources. The question here is what an internal risk is and what can you as a business owner do to protect your company from such risks.
So, we can say that internal risk that any business including cyber security company faces originates within the organization during regular operational times of the business. The good thing is that such a risk is easy to forecast allowing the company to eliminate any internal threats through effective forecasting methods.
Three Types of Internal Risks Include:
Physical Risks: Any risk of internal damage to the company’s assets is called a physical risk. Risk analysis indicates that physical risks are the toughest to tackle if the company assets are severely damaged.
Technological Risks: After conducting a thorough risk analysis, a technological risk is an internal threat related to the change in technology employed by the company. For example, if a cyber security company changes the way they distribute their products is a technological risk.
Human Factor Risks: The human factor is an internal risk caused by the employees of the organization. Issues like union strikes, showing dishonesty, ineffective leadership, and producers are some of the many human internal risks
External Risk Analysis
When it comes to the various sources that cause an external risk to your business, a systematic external analysis will help determine a useful risk management policy. External risks are caused by three main factors that include:
Economic Risk: These risks are directly associated with the constantly fluctuating market conditions. If the economy is doing well your business is at a lower risk. However, if the economic uncertainty is high, businesses will not seem confident to invest more money leading to a sudden yet unexpected loss of revenue.
Political Risks: An external risk analysis determines that political risk is another major cause of threat to your business. The fluctuating interest rates, alterations made to the import and export list, customs laws, tariffs, and other regulations from the local or federal bodies are subjected to political risk.
The Natural Risks: Risk management and thorough analysis of a cyber security company along with other companies have shown that no company is safe from natural disasters like earthquake and storms. Natural risks are the most difficult to control and manage because they are unpredictable.
GLAC Consulting ensures its corporate customers to conduct a significant analysis of internal and external sources of risks when it comes to risk management for your business. If you are interested in conducting a risk analysis for your business, feel free to contact us!