Operating any size business whether it be a small local shop to a large retailer can be costly. Your business could end up having to close its doors as a result of having to pay out the cost of an insurance claim. As a retailer it is essential to both be aware and prepare for the biggest types of insurance claims facing your industry.
Risk Management Blog - ClearRisk
Retail is a risky industry. With consumer purchasing tendencies trending towards the online marketplace, business owners must think outside-the-box on issues which could affect their bottom line and reputation. We’ve compiled ten tips that will help in changing this focus to major risks associated with the retail industry.
Here are three points to get you started: Risk Ownership, Protecting your Brand, and Safeguarding the Supply Chain. These are simple measures that can help lessen the severity in case of an incident. Say a potential customer wants to buy product from you but it is out of stock. “Not a problem!” you say and offer to order it in for them - only to find out your supplier doesn’t have any either. The last batch of product was just sold to your competitor and won’t have more available for a month. You try to explain this to the customer but it’s no use. They head to Facebook where they post a complaint. As quickly as that, a potential customer can switch to a competitor and tarnish the reputation of your business, all at the same time. Head over here for a real-life supply chain scenario between Nokia and Ericsson which discusses a similar situation.
On our recent webinar, “Risk Management Best Practices for Retail”, we sat down with Joe Hardy, a veteran of risk management in retail, to get his thoughts on where the industry is going. As always, Joe’s answers were extremely valuable and we decided to compile the interview portion of the webinar into a blog post. If you’d like to learn more about risk management in the retail industry, click here to see our Top 10 Risk Management Tips for Retailers!
Top 10 Retail Risk Management TipsIn our recently released “Top 10 Risk Management Tips for Retailers”, we looked at som the common challenges and risks facing risk managers in the retail industry, and the top 10 tipsto combat this challenges. With the volatility of today’sfinancial envir onment, increase in natural disasters, and explosion of technology, it is extremely difficult to narrow it down to just 10 tips. But as any risk manager would triage his or her organization’s risks, we triaged our list as well.
Below you will find a sample of two of the tips from our list.