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OVERVIEW: Maintaining your business is often just as difficult as building its success. The failure to maintain a business in a safe and prudent manner is a recipe for disaster. Compliance and risk management issues do not solely mean employee safety matters, but also all other issues affecting your financial health. Issues that you will need to review on a periodic basis include employment practices, regulatory guidelines, commercial policies, and collection practices. All of the aforementioned issues are pitfalls for financial losses and lawsuits. Protecting your business also takes planning to ensure that certain practices and standards are in place to prevent what would normally be preventable litigation. Some examples of good risk management practices are (1) the creation of employee contracts or handbooks so that all employees know from the start their obligations and responsibilities; (2) the review and drafting of your contracts for the sale of goods or services so that your exposure to liability is limited and your rights are protected for the purposes of future collection activities; and (3) the review of existing insurance policies to ensure that your business risks are in fact covered before you need to make a claim.
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