Risk falls into two categories: “in your face” and “hidden.”
Most business owners do a good job of protecting themselves against the first type, which are common, obvious and easily evaluated. These risks include the exposure that comes from employment, manufacturing, transportation and providing products and services to the public.
But it’s the “hidden risks” that can compromise or even bring down the business. More subtle in nature, these risks generally occur when:
- A key executive or specialized talent leaves the organization.
- A key supplier interrupts deliveries.
- Acquisitions change the competitive landscape.
- Employment practices come under legal scrutiny.
- Regulators investigate your operations.
- Cyber breaches compromise sensitive or confidential data.
- Corporate disability claims climb.
- Natural or man-made disasters occur.
- Brands or corporate reputations are damaged.
- Legal expenses spiral upward.
- High deductible policies are tapped.
These risks can have a potentially catastrophic effect on the business, but they are not as likely as the “in your face” risks. That’s where the danger comes in. Their inherent “low predictability” makes them “less significant.” By default, most business owners are self-insuring for these risks – often without knowing it. That means the business is completely on the hook for potentially devastating losses.
Captive Alternative’s extensive approach to risk analysis and assessment uncovers these hidden risks and finds innovative, cost-effective ways to protect against them. Working with CapAlt can help business owners end their unintended self-insurance and help assure business continuity.