By Brooke Chaplan
Business owners who fail to take the proper precautions to protect themselves and their organizations during the course of a major transaction may be subject to far greater risk than they might realize. From using sophisticated analytics in order to better forecast future market trends to encrypting payment and account information during the actual transaction, there are plenty of resources and solutions that businesses may be able to utilize in order to reduce potential risks to more acceptable levels. The following four tips may all be of benefit to those who are seeking to identify and address the most costly or commonplace risks.
Next-generation Data Encryption for Online Transactions
While there are certain missteps that no business may be able to avoid, ensuring tighter security for all online transactions should not be one of them. Outdated encryption methods and payment arrangements that may be at risk of a data breach can quickly become a major concern. Next-generation data encryption can ensure that all payment, account and financial information can be kept safe and secure. Even moderate-sized transactions can be a liability for smaller businesses that have limited resources and jeopardizing a financial transfer due to poor or insufficient digital security can prove to be nothing short of a disaster.
Market Forecasts and Predictions Using Big Data Analytics
Data analysis methods have grown by leaps and bounds in recent years and the latest tools and techniques can provide businesses with a far more accurate picture of market trends and events that may be just over the horizon. Using sophisticated analysis methods in order to sift through existing data sets regarding the past and current operations of a business can help to eliminate many of the risks that may be associated with an acquisition, expansion effort or other major purchase.
Consulting With a Third-party Professional
Seeking the opinion of a professional before making a major decision can offer a range of potential benefits. Service providers, contractors and other professionals who possess greater insight into specific types of transactions or undertakings may be able to provide much-needed guidance and insight. While gut feelings and instincts will always play an important role within the world of business, speaking with a qualified professional and comparing different options with the help of the right service provider can often make a considerable difference.
Implementing a Screening or Vetting Processes
For businesses that are involved with property ownership or management efforts, vetting tenants and vendors can often be of tremendous importance. Novice business owners may mistakenly assume that a poorly selected tenant may result in little more than a few months of lost rent and the inconvenience of having to line-up a replacement occupant. Dealing with the wrong choice of vendors and tenants may result in costly property damages, legal issues that may be difficult to resolve quickly and damage to a business’ reputation or image. Vetting all vendors, tenant screening and learning more about any potential occupants ahead of time is not a concern that should be left to chance.
Finding Ways to Protect the Bottom Line
Businesses that take too many risks may soon find themselves struggling to remain profitable or even just to survive. Risk management efforts that can make a difference are always worth investigating and business owners who know how to avoid the most serious and costly potential missteps may be able to look after their bottom line to far greater effect. Rushing into a major transaction or making important business decisions based in information that may be incomplete, inaccurate or out of date could end up costing businesses a great deal more than they might be able to afford.
Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most her time hiking, biking and gardening. For more information contact Brooke via Twitter @BrookeChaplan.