Risk Management a Low Priority for Small Business Owners, Travelers Survey Finds
Risk management ranks relatively low among the many priorities facing small business owners, is the finding of a new survey conducted by Travelers.
The survey, conducted at America’s Small Business Summit 2010, held May 17-19, 2010 in Washington, D.C., also found that nearly half of small businesses are operating without a Business Continuity Plan. Travelers is a corporate sponsor of the Summit, hosted by the U.S. Chamber of Commerce.
“Small business ownership, while potentially very rewarding, also carries with it great risks,” said Marc Schmittlein, President and Chief Executive Officer, Travelers Select Accounts. “Owners largely focus their efforts on growing their business and, too often, they overlook risks that could stunt that growth and/or even shut their doors for business permanently. The most successful owners are those that balance their pursuit of growth with a prudent approach to risk management.”
According to the survey, ranked in order from highest to lowest, business owners’ most pressing priorities are:
- Marketing and sales
- Managing cash flow
- Attracting financing
- Attracting and retaining employees
- Identifying and managing insurable risks
- Compliance with federal and state regulations
- Protecting against litigation and lawsuits
In addition to the relatively low priority placed on risk management, 44 percent of small businesses are operating without a Business Continuity Plan and only 36 percent have ever spoken with an insurance agent about developing one, despite data from the American Red Cross that indicates that as many as 40 percent of small businesses do not reopen after a disaster.
The survey found that business owners are confident that their businesses are protected against insurable risks that can result in significant financial losses or even cause them to go out of business altogether. In fact, only six percent of business owners are not at all confident that their business is adequately protected; 53 percent are somewhat confident and 41 percent consider themselves extremely confident. This confidence comes despite the fact that 39 percent of business owners are unable to make the time necessary to effectively identify and manage operational risks, given competing priorities.
Schmittlein continued: “While confidence is key to a small business owner’s success, so much of what can derail a business is outside of the business owner’s control. There is no reason for a business owner to bear risks that can be avoided. Developing a Business Continuity Plan is a critical success factor for business owners with a long-term view.”
As one of the largest providers of small business insurance, Travelers has the background and experience necessary to offer small business owners superior products and services. By working with independent insurance agents that represent Travelers, small business owners have access to insurance coverages and risk mitigating services designed to protect against the unique risks and exposures they face, giving them the time to tend to their business and know that it is protected.
Full results of the small business owner survey are available online – Risk Management on Main Street. For more information on developing a Business Continuity Plan, visit Travelers Risk Control Services website www.travelers.com/riskcontrol.
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If you need a basic Business Continuity Plan ASAP… and your company is a small office/service/retailer or manufacturer/distributor with up to 250 employees, this “fill-in-the-blanks” template including three sample plans is perfect for you! Best of all, you don’t need prior business continuity experience.
Quick and Easy Business Continuity Plan for Your Small Business: Step-by-Step Template and Sample Plans
By Douglas M. Henderson
Reach for this “Quick and Easy” remedy if you’re suddenly tasked with developing a plan for disaster preparedness–and feel an impending anxiety attack because you don’t know quite where to start.
NOTE: This basic template is targeted to small businesses with little or no prior business continuity expertise who may not have the time nor expertise to build a full-scale business continuity program.
You don’t need any special training or expensive consultants. You don’t need to spend weeks and weeks or empty your bank account to build a basic business continuity program.
Just go page by page to edit the Microsoft Word template; updating instructions are included as needed in the template and you can refer to the exact same page in the three completed sample plans for guidance. Doug Henderson distills his extensive experience as a business continuity consultant to give you succinct, field tested tips for what to include and why. He includes an abundance of handy forms, checklists, charts and tables for easy completion and distribution. Just completing the forms for “Who’s in Charge” and Immediate Actions will give you a satisfying sense of accomplishment and momentum.
In only a few hours you’ll create a basic, yet fully customized plan unique to your business, which is also compliant with major standards. You’ll have a plan in place to address all the fundamentals of disaster preparedness – and you can build on it later as you have the time and need.
This basic business continuity toolkit includes…
- One Microsoft Word template with color coded sections so you can customize your plan based on company size (under 100/up to 250 employees) and type (service/retail or manufacturer).
- Three sample plans for three fictitious companies – a very small service or retail business (under 100 employees); a small service or retail business (up to 250 employees); and a small manufacturing business (up to 250 employees). Sometimes companies are a mixture of service/retail/manufacturing, so you may find parts of each sample plan applicable to your situation.
- ReadMe.doc file with updating instructions to keep your plan current.
- Bonus file with assorted how-to articles, including:
- Coping With Physical Disaster
- Family Disaster Planning
- Business Survival in the 21st Century
- Facility Evacuation
…and offers you many advantages:
- Was developed by a 20-year veteran in business continuity consulting — a small business owner himself — who knows the specific needs of small businesses
- Has been extensively field tested in a variety of business environments
- Is written in Microsoft Word, designed with extensive “Fill-in-the-Blank” and “Edit-Out” text
- Requires no special training in the discipline of Business Continuity Management (BCM)
- Results in your own customized plan that addresses all the fundamentals, all within a few hours
- Is compliant with professional standards from the Disaster Recovery Institute International (DRII) and National Fire Protection Association (NFPA) 1600 Standard on Disaster/Emergency Management, as well as industry best practices
- Can be used for student practice in corporate training classes in business continuity/disaster recovery– site licensing available.
- Provides an optional upgrade path to several more sophisticated templates and tools for whenever you’re ready to build a more comprehensive business program for your growing business.
Published by Rothstein Associates Inc.
ISBN 9781931332538
2010
Only $69.99!
NOTE: This basic template is targeted to small businesses with little or no prior business continuity expertise who may not have the time nor expertise to build a full-scale business continuity program.
Tags: risk managment, SMBs, survey, Travelers
