Creating a Culture of Risk Management in Your Cannabis Business

As a business owner, you understand the importance of risk management and how losses affect your bottom line. However, you may not be stressing the importance of risk management enough with your employees... 

Cannabis related businesses tend to have higher risk that most standard operations. There are several things you need to look closer at than average businesses such as theft protection, regulatory issues, cleanliness and distribution just to name a few. 

You probably have a pretty solid culture in your work environment. You have talented and happy staff, but are they as concerned with controlling losses as much as you are? Here are a few tips to help create a culture of risk management within your organization:

  1.  Make it a point to have regular meeting and training sessions with your staff on best practices and loss reduction. If you need help, insurance carriers will often assist with classes or online material to share with you and your staff. They want to help you create a loss free environment for obvious reasons. 
  2. Let your staff know how important it is to you that they take pride in their work and take caution to prevent injuries to themselves and damages to the business. There is great job security working for a business that has a proven track record and takes pride in operations for continued growth. When staff correlate their job security to risk management, everyone benefits.  
  3. Consider a loss free incentive program where staff can get rewarded for going a certain amount of time loss free. This can be either monetary or something like a loss free party to celebrate everyone's success in minimizing or eliminating losses.

Depending on your operations, your risk management can vary greatly. You may already be doing all the above or more, but it is good to partner with an insurance broker that works with the cannabis community since there might be even more creative ways to reduce losses. Remember that losses can have repercussions way beyond the intimidate dollar loss such as long term business interruption, external reputation problems, and internal employee problems. Cannabis Insurance Associates assists mid to large cannabis related businesses with their risk analysis and insurance placement needs. No two businesses are the same, so consult with us to help create your risk management culture and a custom insurance package!