There are many factors that can topple your business dreams. Whether caused by a natural disaster, death, or lawsuit; these potential threats must be carefully considered by any company.

Risk management is a top-of-mind issue for all companies, regardless of size. Typically, risk management includes reviewing the operations of a company, identifying potential threats to the business, how likely those threats are to occur, and what actions to take to address and respond. At one time, insurance risk was the primary area of focus in risk management. However, in today's business climate, with the increase in regulations, lawsuits and reliance on third-party entities, companies have to look beyond insurance when considering risks.

The tricky question faced by many businesses is the amount of resources to dedicate to risk management. When opportunity knocks, what's a business to do? A company that focuses too much on the downside of risk can overlook opportunity to grow and expand. Carefully assessing the risk involved in a potential move; as well as, weighing the opportunity that move presents is a critical vision successful businesses must possess.

Cost risk and management describes weighing the eventual cost of the risk. How often might an occurrence of risk happen, and what is the impact of that event on the company. Once a risk has been identified and studied, most companies will look to classify the risk in one of four ways: avoid the move, reduce (or attempt to mitigate) the impact, transfer the risk (either by outsourcing or insurance), or retention (accepting the risk and planning for any impact).

A company's risk management plan may not be perfect. Certainly, one size does not fit all. A risk one business may shy away from will be a welcomed move for another company. Risk management, an ever-evolving process that is crafted by experience and forward planning, is a must for any company.