Risk management is the most important boring topic no one wants to talk about
If you rely on a 3rd party for a mission-critical aspect of your business, you need to pay attention to risk
Some quick thoughts:
If you rely on a 3rd party for a mission-critical aspect of your business, you need to pay attention to risk
Some quick thoughts:
Business is inherently risky
Today it’s a bank (SVB)
Tomorrow it could be another mission-critical aspect of your business that goes dark
How will you prepare yourself to handle it?
Today it’s a bank (SVB)
Tomorrow it could be another mission-critical aspect of your business that goes dark
How will you prepare yourself to handle it?
Everyone thought SVB wouldn’t go under until it did
You might not think any of the parties you do business with today can go away
Until they do…
Here are some key questions to ask yourself and your team
You might not think any of the parties you do business with today can go away
Until they do…
Here are some key questions to ask yourself and your team
1/ Data storage
• Where is your data / IP stored?
• Are you relying on a third party?
What’s your backup plan if they have a breach or loose your data?
• Where is your data / IP stored?
• Are you relying on a third party?
What’s your backup plan if they have a breach or loose your data?
2/ Inventory
What would you do if you can’t access your inventory due to a natural disaster?
Do you keep all of your inventory in one warehouse?
OR
Do you use a network of warehouses?
What would you do if you can’t access your inventory due to a natural disaster?
Do you keep all of your inventory in one warehouse?
OR
Do you use a network of warehouses?
3/ Shipping
What would you if one of your key shipping carriers goes dark?
Do you have an alternative?
What would you if one of your key shipping carriers goes dark?
Do you have an alternative?
4/ Customer
What would you do if you lose your biggest customer?
Are you diversified enough to handle the loss in revenue?
What would you do if you lose your biggest customer?
Are you diversified enough to handle the loss in revenue?
5/ Employee data
What is your payroll provider’s employee data storage method?
What happens if your employee data is compromised?
What is your payroll provider’s employee data storage method?
What happens if your employee data is compromised?
6/ Customer data
Where is your customer data stored?
What happens if your customer data is compromised or lost?
Where is your customer data stored?
What happens if your customer data is compromised or lost?
7/ Key Employee
If a key employee leaves in your organization, how will you replace him/her?
Can you document the knowledge they have so that it can be transferred to a new hire?
If a key employee leaves in your organization, how will you replace him/her?
Can you document the knowledge they have so that it can be transferred to a new hire?
It’s easy to think about banks because SVB is in the news
But in business, there are risks everywhere
This doesn’t mean that you stop doing business or start diversifying like crazy
It just means that you need to make a plan in case the worst happens
But in business, there are risks everywhere
This doesn’t mean that you stop doing business or start diversifying like crazy
It just means that you need to make a plan in case the worst happens
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Follow @AliTheCFO
I tweet about:
- Finance
- Business Frameworks
- Personal Growth
Follow @AliTheCFO
I tweet about:
- Finance
- Business Frameworks
- Personal Growth
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