What Are Hidden Risks?

By Lois Leonard

0 min read

Hidden risks are unknown factors that could have a negative impact on your business. Examples of hidden risks include adverse weather conditions and damage to goods you’ve paid for while they’re in transit. Bad debt also poses a risk, as you may not be able to cover expenses such as payroll if your clients don’t pay their invoices. Data breaches, which occur when your online systems aren’t secure, can result in loss of clients and valuable intellectual assets. You can’t foresee the future when it comes to risk, but it’s a good idea to develop contingency plans for worst-case scenarios even if they never happen.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Why You Need a Contingency Plan or Exit Strategy

It’s important to have a plan of action, or contingency plan, to…

Read more

Canada's Move to a New Retail Payments Oversight System

Long gone are the days when you had to carry cash to…

Read more

How to Calculate Your Hourly Rate When You're an Independent Contractor

When you’re starting out as a freelancer, one of the biggest challenges…

Read more