Significance

• Successful risk management gives a small business an opportunity to thrive and grow. For example, imagine the impact the Internet has had on local newspapers. Local newspapers that focus on blending e-commerce strategies into their business models will more likely enjoy growth during the Internet age.
  
  

Prevention/Solution

• A business plan proves essential for preventing and solving risk management issues, according to the Small Business Administration. An effective business plan involves researching your business's industry and learning from mistakes other companies have made in the past.
  
  

Considerations

• The SBA stresses that business plans should exist as ongoing documents. This allows business plans to address emerging problems. For instance, a local grocery store would reevaluate competition within risk management if a national chain opens a new grocery store within the same city.