Every business faces operational risks, and they refer to the threats that arise from the day-to-day activities of a company. One of them is financial risks that every business owner must manage, and due to the Coronavirus pandemic, such risks have increased due to remote work from home. Operational risks today include threats of fraud, lawsuits, risks to the business model for growth, marketing, and cyber- crimes.

Organizations, both big and small, are more vulnerable than ever before, and whether it is malware or phishing attacks, hackers are constantly on the lookout to discover new ways to invade businesses.

Business expert Kavan Choksi speaks about financial risk management strategies

 Business and finance expert Kavan Choksi is an expert in risk management strategies and cryptocurrencies. When it comes to financial risks from cyber criminals. March 2020 witnessed a number of cyber scams that increased by almost 400% across the globe. The threats still persist, and it is vital that businesses across the world take immediate measures to protect their employees and company from these attacks.

According to him, as new scams surface, businesses should devise ways to keep hackers away. Organizations can incorporate and enforce measures for security as a part of their daily practices for employees.

The need for a comprehensive plan for financial risk management against cyber attacks

The security strategy of the very organization should align with its specific risks to the business operations. Regular risk assessments will permit the employers of the company how much they should invest in cybersecurity measures. They should take the onus to identify their digital assets within the network as well as personal devices so that employers can devise the best ways for their protection.

Once the risks of the company have been effectively assessed, a customized plan must be created for protection. For example, a strategy for cybersecurity can include a virtual private network for secure remote work so that the devices are protected from potential threats on public wi-fi connections. Other risk management factors against financial risks could include multi-factor authentication for passwords of the computer networks of the organization.

Businesses should also chalk out a plan for securing the databases with firewalls. Investments in tools for threat-monitoring and end-point protection can help the company protect its sensitive financial data and records from cyberrisks.

Other types of financial risks a business faces in its daily operations 

Besides operational risks due to cyber -crimes in the post-pandemic era, there are other types of financial risks that companies should be content with. According to business expert Kavan Choksi, market risk occurs when there are substantial changes in the marketplace where the business competes in. Credit risks take place when the company issues its customers a line of credit while not having sufficient funds to pay their bills. Liquidity risks refer to how soon the company can convert its assets into cash in case it needs funds, or it can mean its daily cash flow.

Business owners should be aware of the above risks to create custom risk management strategies with the help of experienced financial managers. In this way, they can compete in the desired market niche and survive in the post-pandemic era successfully.