Their expertise can then grow as their business grows. Risk management has been practiced in business for decades. Risk management tools and techniques have grown in sophistication and complexity, but the core ideas and principles have remained constant. Risk management is the practice of identifying and analyzing loss exposures other than business risks, and taking steps to minimize the financial impact of those risks. In small firms, an owner has to take a broad view of all organizational risks, and usually depends upon traditional insurance to play a leading role in managing and financing loss exposures.
Risk management is, however, more than purchasing insurance to cover potential losses.
The aim of the Small Business Risk Management Project is to offer new and small businesses owners basic information on risk management tools and techniques so that they can better protect the assets and health of their firms, including becoming more savvy insurance purchasers. Training Training for SBDC counselors will be delivered during one-half day programs at SBDC regional and state meetings. Subsequent regional and state meeting sessions will be held through April 1999. The SBDC counselors trained at these sessions will then train other counselors in their states and regions over the next several years. After being piloted, the training session for SBDC counselors will be adapted for online use by both SBDC counselors and interested small business owners.