What Types of Risks Do SMBs Face?

Learn how to combat internal and external risks using a risk management framework.

Small and medium-sized businesses (SMBs) face different types of internal risks (weaknesses) and external risks (threats). When these are identified, it’s easier for businesses to pinpoint ways they can mitigate them and ensure business continuity. All it takes is one event to wipe out all your hard work, but if you proactively understand your risks, you can better protect yourself from the negative impacts they cause.

What are Internal Risks?

Human risks contribute to many of the primary internal threats SMBs face. Here are some common internal risks and how they could potentially impact your business.

These weaknesses are not a comprehensive list but should illustrate how just one internal risk incident can significantly impact an SMB.

What are External Risks?

External risks are threats that come from outside the organization and can have a direct impact on its ability to operate or achieve its goals. Here are some common external risks and how they could potentially harm your business.

Again, not a comprehensive list, but to highlight how external factors can negatively affect SMBs. Today’s SMBs face external threats that might be beyond their control, but mitigation strategies can minimize or eliminate potential damage caused by these threats.

How a Risk Management Framework Can Help

Internal risks are a little easier to control, although they aren’t always entirely controllable. External risks are more difficult to regulate since they originate outside of the organization. To combat both internal and external risks, SMBs that opt to utilize a risk management framework (RMF) often find this goes a long way towards helping to mitigate the risks they face.

Need help performing a vulnerability risk assessment or want to learn more about RMFs? Contact Trava today to find out more about how we can help you better secure your business.  

Sources

https://www.sba.gov/sites/default/files/files/PARTICIPANT_GUIDE_RISK_MANAGEMENT.pdf

https://www.thebalancesmb.com/risks-that-worry-business-owners-the-most-4163648

https://www.thehartford.com/business-insurance/strategy/swot-analysis/threats

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