The world is full of risks and they can all apply to almost everybody. So we all need to manage them.

The size of a claim or loss does not always relate to the size of the contract or activity concerned, nor to the size of the business carrying it out. I remember a claim where a plumber went into a school to install a toilet and ended up burning most of the school down by using a hot cutting torch too close to inflammable material.  I also know of a claim which resulted from an office block being destroyed by an explosion caused by a spark from the ignition to a boiler when it ignited fumes from a substance being used to lay a new floor in one small office in the building near the boiler. Again that was a small job being done by a small contractor, but the losses were far greater than the original cost of the job. One of the most bizarre cases I know of concerned a “country fayre” in Scotland where a falconry display was disrupted by high winds which blew a large vulture off course and into the airspace around Glasgow Airport, leading to the temporary closure of the Airport.  I have no idea how much the resulting delays to flights would have cost, but it was probably much more than the cost of putting on the falconry display.

In many ways, small businesses need to take more interest in Risk Management, because they are more vulnerable.  Big businesses can withstand more losses.  How long for example would your business survive if you could not have access to your office or workshop? What if your computer systems failed?

Small businesses need to know what their risks are and have arrangements in place to reduce the chances of things going wrong and also have plans to enable them to cope if such things do happen.

Don’t leave it to chance: take control.