Risk management often means expecting and planning for the unexpected. In order to maintain the safety of the employees and customers and ensure the viability of your business, you need to prepare for unforeseen disasters. These risks may include criminal activity, natural disasters or terrorist acts. Any one of these threats could be serious enough to devastate your business, but if you have readiness plans in place you can work to minimize their impact.
Without prior planning, you leave your company open to financial disaster, especially if you are forced to close operations for a period of time. In addition, without a proper plan to cope with a disaster situation, your company may face lawsuits from customers, vendors or employees claiming negligence.