With the start of a new business come the risks associated with it. These risks tend to affect business operations in negative directions if not well taken care of. McBride Financial Services will be faced with threats eminent in Sioux Falls. With the start of a new branch, this will mean development of ways to avert the potential risk that can be posed to the business. For the purposes of this paper, categorization of risk has been done in two ways:
Risks from the external environment
Sioux Falls City is the largest city in South Dakota. The city enjoys a fast growing population, which also translates to better business. This, however, has put pressure on the available resources. The road network is the major form of transport in the area. Roads provide an avenue for transportation of bulky and heavy products as well as passenger transport. This has caused huge traffics in the area, causing a lot of noise pollution. There is the risk of people who live near roads developing noise-pollution-related health concerns. The big trucks that carry many substances are the major contributors of the problem. It cannot be forgotten, moreover, that due to heavy rains at times, there is likelihood of accidents in the area. The likelihood of trucks that carry poisonous and hazardous substances being involved in accidents is there. The possible harm that this can cause to the near population can be adverse. Since McBride Financial Services is planning to have its offices next to road network, it is prudent to note that the same will be at risk of exposure form these hazardous substances.
Another external risk faced by the company is security-related issues. Forced entry is a possibility that cannot be overlooked (Andrew, 2004). The company is planning to locate its business next to estate residence. In most cases, crimes are committed in living estates as opposed to city centers. This is a threat, therefore, that the company will face.
Internal threats are those threats that arise from within the organization. These threats can be related to technology and information systems used. Since the company will be using an online presence in the day-to-day carrying of their services, there is a risk of interference from hackers. For the purposes of this paper, hackers and external forces threats have been considered as internal threats because they aim at attacking the internal infrastructure of the company. This threat is not seen to pose a serious risk to the company; however, care should be taken to curb the possibility of competitors or sabotage from exploiting the new systems that are to be implemented in place (Business Leaders Program, 2007).
Employees can also pose a risk to the operations of the company. The threats posed by employees can be accidental or non-intentional. If employees do not have a clear understanding of the working environment in Sioux Falls, then their decisions could put the business at risk.
Threats related to unauthorized access to information systems by hackers or internal actors could cause the company to lose important information, which could lead to losing its competitive advantage or even attract lawsuits from the affected.
The risk posed by the possibility of hazardous chemical spills is beyond the control of the company as it is. However, in the past the relevant bodies have been able to transport these substances in tightly sealed strong containers. Even though this is the case, the possibility of the worst happening cannot be overlooked. The company needs to ensure that its employees in the Sioux Falls are protected from the same by provision of tightly sealed and self-sustaining room in the proposed office.
Ensuring that physician security is implemented is the key to reducing forced entry risk. Strong gates and entrances should be used in the office, not forgetting security guards. Alarm services can also be implemented in the premises (Andrew, 2004).
Andrew, H. (2004).Enterprise Risk Assessment and Business Impact Analysis: Best Practices. Brookfield: Rothstein Associates Inc.
Business Leaders Program (Aug, 2007).Business risk assessment. retrieved on 3rd Aug 2011 from http://www.sustainabledevelopment.in/events/pdf/Business_Risk_Assessment.pdf