Pearl Harbor Day is approaching. The Japanese Imperial Navy burned that day into US history with the sneak attack the naval yards and airfield in Pearl Harbor, Hawaii. Historians have written volumes about the warning signs the US had leading up to the attack. The Japanese planes may have flown into the teeth of a prepared defense on December 7, 1941 had the US paid more attention.
You and your business should take action to avoid a surprise attack. Here are potential areas of concern.
- Financial Controls. Do you have adequate financial controls and oversight over those who have access to the business bank accounts and credit cards? Do have or need employee dishonesty insurance coverage? A standard liability policy may not cover theft or embezzlement by your employees. All it takes is one dishonest employee to do significant damage. The better your controls are, the more likely you will deter wrongdoing or detect a problem earlier.
- Confidential Data. Confidential data comes in many forms, be it your trade secrets, your employee’s or customer’s private data (social security numbers, medical records, etc.), or bank account or credit card information. There are federal and state laws covering much of the data on when/how you need to protect the data, and how to act if you have a data breach. What do you have in place? Ignoring the issue can cost far more than paying after the damage is done.
- Customer Contracts. Do you use contracts with your customers? It does not matter they are one-page documents, the text on the back of an invoice, or multi-page tomes. It makes sense to review them on a regular basis for updating, check for compliance with any applicable state and federal laws, and so forth.
- Employee Contracts or Policies. “I don’t need no stinking contracts with my employees” you may say. Maybe – maybe not. Do you give employees the company credit/debit card? Do you allow employees to use their personal smartphones or other devices to access company data or email or cloud accounts? Do you have trade secrets to protect? Can you use a non-compete? Do you have a sexual harassment policy? It is better to get these in place before the proverbial horse gets out of the barn.
- The Corporate Book. I am referring to the bylaws, operating agreement, partnership agreement, and so on. How well are they working out? Have you deviated from them and need to return? Do you need to revise them? Keeping these in order will help if you have a dispute with your other owners or have an audit.
These are but some of the areas where preparation can do wonders for a business. Take the time to reduce the risk of your business suffering a Pearl Harbor that could sink your business. Please contact us to assist you in this process.