How do you know the level of risk in your company?

Companies are subject to a series of risks when operating in a variety of markets. Therefore, it is very important that management is able to identify these vulnerabilities, adopting technologies, protocols and preventive measures to avoid these problems. That is why we have prepared this exclusive post on the subject.

After all, do you know how to identify the level of risk in your company? If you don't, that's okay, because that's exactly what you'll discover in this article. Here, you'll learn about the main operational risks and find out how you can mitigate the impact of these situations. Enjoy your reading!

What is the degree of risk?

A company's level of risk in the market is directly linked to its activities, products and services — which can be understood as the company's core business. For example, if your business operates financial products, such as loans, financing, credit plans and consortiums, you deal with the risk of granting credit.

On the other hand, you may run a predominantly digital business that handles sensitive user information, such as social security numbers, addresses, and the like. In this case, your vulnerability surface is mainly in the area of ​​digital security, where your company is exposed to the risk of cyberattacks.

And that is what risk analysis for companies in the market is all about. After all, risk is a metric that can be assessed from several perspectives. Just as a bank assesses the risk of a credit operation, companies need to assess the risk implicit in their operations to minimize the chances of suffering problems and losses.

In e-commerce, risk assessment is one of the most important practices for the sustainability of a business in this market. That is why there are many risk indicators aimed at this sector.

What are the main risk levels in the market?

As you can see in the previous topic, business risks are always linked to the activity carried out by the company. Therefore, to identify the risks of your company, it is important to analyze its performance in the market. Below, we have gathered the most common and critical risks of today — take a look!

Cyber ​​risk

Nowadays, investing in cybersecurity is essential for your protection in the market. This is especially important for companies that deal with sensitive data, especially after the approval of the LGPD. However, in addition to targeting your customers' data, cyberattacks can render your systems and machines useless, causing downtime and huge losses.

Reputational risk

A company's social image is one of its greatest assets. Therefore, it is important to be aware of the risks of brand exposure, which we call reputational risks. Among the main triggers for these problems, we highlight advertising blunders, data leaks, product counterfeits, fraud, unfortunate statements and relationships with controversial figures and practices in the current scenario.

Compliance risks

Compliance risks encompass other categories of business risks, such as tax and regulatory risks. Tax risks refer to an organization's legal obligations, such as taxes and official filings. Companies that submit documents late or with incorrect information are subject to fines, for example.

If invoices are not issued in accordance with the law, the company may be classified as a tax evader. And the manager responsible may be sentenced to between two and five years in prison. Therefore, it is essential that all declarations are kept in good condition, for constant improvements, both externally and internally.

As for regulatory risks, as the concept itself makes clear, they are directly associated with failures in the company's regularity. Frequent changes in the organization's rules can bring legal uncertainty, especially for those who operate with regulatory agents (such as concessions).

One of the regulatory risks is the fine, when the company hires an employee and disobeys the rules of the Consolidation of Labor Laws (CLT) during admission.

Financial risks

Financial management ensures business growth. Without proper money management, a company runs the risk of sinking into debt, delaying employee payments, losing money due to customer defaults, and other setbacks.

The larger the company, the greater the need for good financial management. The aim is to ensure that profits are higher than expenses, which requires more complex management.

Occupational risks

Here, it is also worth highlighting occupational risks, which are directly linked to the dangerousness of the work environment. Again, this is an analysis that observes the activity carried out by the company. To find out the risk level of a CNPJ, simply consult its CNAE.

What is the normal level of risk for a company?

A normal level of risk is one in which management has the capacity to invest in preventive measures and solutions. For example, if a business does not have the capital and legal know-how to protect itself from legal and financial risks, it may not be the best idea to adopt a business model that deals with raising funds and granting credit.

For each activity, there must be preparation and conditions. For example, let's say you have an online store. In addition to investing in the user experience, with good interfaces and a fast and fluid shopping experience, it is very important to invest in anti-fraud management, increasing the security of your customers and ensuring your compliance in the market.

This is why it is so important to adopt strategic planning , whether you are opening a new business or pivoting your current operation to a new market sector. It is through planning, structure and investment in compliance and prevention solutions that it is possible to protect yourself from risks, minimizing the chance of dealing with problems.

Ultimately, a normal risk is one that the company understands as acceptable, because it is inherent to its market performance and because it already has a series of well-positioned preventive measures in place, ensuring protection and predictability, if necessary. but in many operations, risk is a constant part and needs to be taken into account in business management.