Understanding the Potential Threats to Your Business

Editor's Note: Take a look at our featured best practice, PMI Risk Management Professional (PMI-RMP) Exam Preparation (211-slide PowerPoint presentation). Risk Management Professionals aim to recognize, evaluate, and document the risks associated with a company's business operations. They also oversee the efficacy of risk management processes and implement necessary adjustments. Attaining the PMI Risk Management Professional (PMI‑RMP)® [read more]

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Unfortunately, businesses of all shapes and sizes are susceptible to a variety of potential threats each day. One wrong move and you could negatively impact your reputation, finances, and longevity.

While different companies will have their own set of challenges, there are some common problems that could seriously dent your organization’s success. To ensure you are prepared for every possible issue that might arise, read about the potential threats to your business.

Cybersecurity Risks

While you might not like to believe it, cybercrime is rising at a rapid rate and can have significant repercussions for your business. Sadly, hacking can happen to any company at any point. However, despite its growth throughout the years, only 14% of small businesses rate their ability to prevent a cyber attack as highly effective.

Thankfully, there are various ways to improve your company’s cybersecurity, as you should:

• Routinely back up data to recover any sensitive files following a cyber attack
• Utilize encryption to prevent hackers from reading your data
• Use a reliable internet hosting company for all business websites
• Invest in a security platform to prevent Docker vulnerabilities
• Implement two-factor authentication across all accounts
• Provide your team with cybersecurity training to avoid data breaches or cyber attacks
• Stay up-to-date on the latest cybersecurity trends, tactics and technologies

Financial Issues

Financial problems can quickly spiral out of control when running a business. For this reason, it is essential to tackle a problem as soon as it arrives, which will help you to stay on top of your cash flow.

If your company is struggling with its finances, it is a smart decision to talk to an experienced finance manager, who can help you to create a plan of action to gain tighter control of your budget. You might also need to find ways to lower your overheads, and carefully consider securing an investor or a business loan to inject cash into your business, who could ensure its growth and survival.

Increased Competition

Most industries are filled with many brands who are more than happy to steal your customers to ensure their company’s success. Unfortunately, battling it out with bigger and/or better industry rivals can be overwhelming, as you might struggle to retain or acquire customers as a result.

Rather than allowing your competitors to win, you must make it your mission to stay one step ahead in your industry. For example, you could:

• Analyze trends to identify a gap in the market
• Review your rivals’ sales and marketing strategies to identify where they are going right or wrong – and build upon their success and weaknesses
• Perform market research and focus groups to develop a stronger USP
• Rebrand your business to attract more customers
• Invest in forward-thinking technologies to streamline processes and increase productivity

Don’t wait for a competitor to push you out of an industry and make it your mission to think up the next best thing to grab your audience’s attention, boost your annual sales and grow your brand’s reputation.

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