There are a lot of risks when running a small business. Below are some of the biggest challenges you need to watch for, what types of business will be most affected, and the practical steps you can take right now.

1. AI misuse and lack of governance could increase your exposure. AI can help—but without governance, can lead to wrong client deliverables, privacy breaches, and IP leakage. Train employees on privacy and data handling and require human review of all AI-generated content.
2. Cyber incidents can cause more business shutdowns and data leaks. If you have a cyber incident/breach there will be an erosion of trust from your customers along with business interruptions. Set up and enforce multi-factor authentication, train staff to identify AI-enhanced scams, and have cyber liability insurance.
3. Extreme weather could cause more commercial property damage. Stay current on routine maintenance, install leak sensors and sprinkler systems, invest in power backups and generators, and have both commercial property insurance and business income insurance.
4. Deferred building maintenance can lead to big losses. Businesses may delay maintenance due to labor shortages or inflation. Follow a preventive maintenance schedule, document repairs and inspections, and review your insurance.
5. Organized theft and fraud could rise. Businesses that stock products and make deliveries, along with retail stores and restaurants, should use inventory-tracking systems, tighten return polices, and upgrade general liability insurance to a Business Owner’s Policy to mitigate financial losses due to property theft.
6. Expanding biometric and privacy laws. Businesses that use customer data/biometrics, fingerprint check-in systems, facial recognition cameras, and loyalty apps should audit data collection practices to ensure compliance with local laws, add biometric consent language, and add privacy liability coverage.
7. Liability claims could rise across all industries. Refresh staff safety training, keep incident documentation and safety protocols up to date, review insurance, and add commercial auto insurance if the business owns vehicles or drivers drive their own cars.

Oswego Area Chamber of Commerce

25 E Jackson St

Oswego, IL 60543

Ph: 630-554-3505

http://www.oswegochamber.org/