Examples of a Mitigation Plan
A mitigation plan reduces the exposure of a business to risk and decreases the effect and severity of risks. The risk mitigation plan develops processes for the effective recovery of a business in case of an accident, natural disaster or outside threat that endangers the business's continuing profitability. The plan must identify risks that the business will encounter, the damage that those risks can do if left unchecked and how the plan can be implemented to reduce or eliminate that damage.
With so many businesses sharing sensitive data over Internet connections, the need for heightened computer security has never been higher. Computer hackers, identity thieves, foreign terrorists and corporate spies constantly seek out computer networks with security vulnerabilities. These vulnerabilities can lead to theft of customer account information, product development data and company accounting records. A computer security risk mitigation plan includes methods to generate user passwords that are more difficult for hackers to crack, patch up "back doors" in sensitive networks and encrypt sensitive data during transmission.
Floods, tornadoes, blizzards and other natural disasters can have a devastating effect on small businesses. Storms such as Hurricane Katrina and Superstorm Sandy caused billions of dollars in damages. Even after area residents have repaired the worst of the damage, the losses in infrastructure, communications and customer data may be too much for a business to stage an effective recovery. A natural disaster risk mitigation plan helps small business owners foresee these effects and details the processes to make alternative arrangements.
Some threats to businesses come not from external dangers but from internal sources. When a company leader dies, retires or leaves, the firm can undergo turmoil from the loss of leadership. A small firm may not survive the loss of vision and solidarity that comes from its departed leader. A succession plan can reduce the risk of uncertainty that comes from a change of leadership. Vendors, customers and employees will see that the company understands how to make the transition and that the business will continue.
Depending on the industry, small businesses can carry large environmental risks. Dry cleaners use dangerous solvents. Auto mechanics dispose of petroleum waste products. Print shops handle acetone, oil-based inks and other toxic substances. An environmental risk mitigation plan outlines processes by which companies can reduce their potential to contaminate local soil and groundwater. The plan can also include methods by which the company can take on more environmentally-friendly practices, such as reducing the use of toxic chemicals and recycling reusable materials.