7 Internal Risks that Confront Businesses


Business risks can be broadly classified into two – internal and external. In this article, our focus will be on internal risks. These are risks within the organization, which are often easier to control because the management has a direct hand in it compared to external risks.

  1. Non-Compliance

Non-compliance in an organization can result in hefty fines and revocation of business licenses. This can be in various forms, such as the failure to protect customer information, lack of systems in place to promote employee safety, and sexual harassment, among other things. Non-compliance can also affect the business image, which will hurt the company’s profitability. An easy solution is to provide compliance training with the help of companies like True Office Learning.

  2. Workplace Politics

Office politics can affect the life of the employees. It is driven by ambition, emotion, and insecurities, among other things. Without the proper approach to managing politics in the workplace, it can destroy employee relationships. It can compromise the productivity of the workers. Worse, this can even lead to violence.

  3. Data Breach

Data breaches can be perpetuated by cybercriminals outside the organization. However, it can also be an internal risk, specifically when employees are involved. Lack of knowledge in data management can make data susceptible to breaches. A good way to avoid this is to provide comprehensive training with the help of eLearning software, such as what True Office Learning can provide.

  4. Employee Protests

When employees are unhappy about their workplace conditions, they will protest. This results from the management not giving their people the humane treatment that they deserve. This is an internal risk because this can cripple business operations, resulting in significant losses. It can also negatively impact the company’s image.

  5. Equipment Failure

Especially in businesses where activities rely mostly on equipment, such as construction and manufacturing, equipment failure is a big risk. This can make the workplace unsafe. It also paralyzes the operations of the business. To prevent this from happening, pay attention to regular care and maintenance. Also, invest only in top-notch equipment to ensure reliability.

  6. Poor Customer Service

With poor service, customer satisfaction will suffer. In turn, this will affect profitability. To avoid this internal risk from ruining your business operations, implement strategies to improve customer service. Make sure that they receive assistance when needed and give them a voice. Look for opportunities to gather feedback and use their inputs to deliver better service.

  7. Lawsuits

Businesses can be prone to lawsuits because they failed to treat the employees properly. For instance, employees can explore the necessary legal remedies when they believe that they are not compensated properly or when there are instances of sexual harassment, violence, and discrimination.

From non-compliance to poor customer service, take note of the internal business risks mentioned above. The management should have a proactive approach in minimizing these risks, making sure that they do not negatively affect the performance of the business.

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