Protect yourself and your business against risks

In order to succeed as an entrepreneur you need to be prepared to take controlled risks.

Typical examples of risks faced by companies include business, contractual risks and liability risks, environmental and business interruption risks as well as risks from crime. Risks can also be divided into strategic, economic and operative risks as well as pure risks. Pure risks include property, operational and personal risks. Insurance is a means of risk management that transfers risks from your business to the insurance company.

You can use a four-field matrix called SWOT analysis to help identify risks. The SWOT analysis describes the strengths and weaknesses of the business idea, entrepreneur and company, as well as the opportunities and threats.

The analysis will help you examine how to develop your strengths, eliminate weaknesses, exploit opportunities and counter threats.

You can also receive help with managing risks from the business advisors and experts of the Enterprise Agencies.

Scams or frauds preying on companies have increased significantly. As a new entrepreneur, you might be targeted by deceptions such as directory scams, offers masked as invoices or counterfeit invoices demanding money for a trademark.

Do not place any orders or enter into agreements over the phone, unless you are absolutely sure of what you are ordering and how much it costs. If you receive and invoice for a service you do not think you ordered, you can demand access to the recording of the phone call. If you have refused to purchase a service but receive an order confirmation or invoice anyway, file a complaint.

Carefully review all received invoices. Some of them may actually be offers disguised as invoices, which you do not need to pay.

You can protect yourself from scams – check the instructions of the Finnish Patent and Registration Office.

You will also find good tips (in Finnish) in the guide of the Federation of Finnish Enterprises.