{"id":1550,"date":"2020-04-30T13:18:06","date_gmt":"2020-04-30T13:18:06","guid":{"rendered":"https:\/\/www.insurancebee.com\/blog\/?p=1550"},"modified":"2023-02-08T09:59:44","modified_gmt":"2023-02-08T09:59:44","slug":"manage-financial-risk-guide","status":"publish","type":"post","link":"https:\/\/www.insurancebee.com\/blog\/manage-financial-risk-guide","title":{"rendered":"How to manage financial risk in business. A handy guide."},"content":{"rendered":"
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\"How<\/figure>\n<\/div>\n\n\n

The biggest risk to small businesses is financial. But if the thought of financial risk management gives you tunnel vision, you\u2019re not alone.  <\/p>\n\n\n\n

93% of small business owners<\/a> say financial risk was their biggest worry at start-up. And it still nags at nearly half of them long after they\u2019re up and running. Even so, when it comes to financial risk management, many SMB owners have a \u2018head in the sand\u2019 approach.<\/p>\n\n\n\n

We get it. Running a business doesn\u2019t automatically make you an expert in finance or accounting. But it pays to be prepared.<\/p>\n\n\n\n

What is financial risk?<\/strong><\/h2>\n\n\n\n

It’s all about the money coming in and out of your business and the potential for loss.<\/p>\n\n\n\n

Say most of your firm\u2019s revenue comes from one particular customer. What happens if they suddenly stop paying? Or, what if interest rates soar overnight. Where will you find the extra money to meet your loan repayments?<\/p>\n\n\n\n

Managing your financial risk means having a back-up plan. Safeguarding your finances so you don\u2019t end up out of pocket. Because if you\u2019ve got outside investors, it\u2019s not just your own money you\u2019re risking. It\u2019s theirs too.  <\/p>\n\n\n\n

Financial risk management guide<\/strong><\/h2>\n\n\n\n

To help you, we\u2019ve created a cheat sheet. Taken from our Big Guide to Small Business Risk<\/a>, it\u2019s the third in our series. (You can download the first cheat sheet, on the different types of business risk here<\/a>. The second one, on legal risk, is downloadable from here<\/a>.)<\/p>\n\n\n\n

This one\u2019s all about money.<\/p>\n\n\n\n

As well as pointers on how to manage credit risk, you\u2019ll find top tips on things like:<\/p>\n\n\n\n