Business is filled with risks that can destroy value in a heartbeat. We call them critical threats. An accounting error. A missing laptop. An unsubstantiated fraud allegation. Even small things can snowball, and the next thing you know, it’s front page news, your share price is tumbling - and your phone is ringing off the hook.
Instead of worrying about critical threats, take steps to mitigate and manage them. Start with a thorough assessment of your exposure in each area and work your way around the critical threat cycle to make sure you’re covered.
Managing critical threats requires two things. Getting prepared, and responding when things go wrong. Many of the actions you should take to prepare for threats are the very same actions that make them less likely.