This month, our MyCommunity groups have been exploring business risks and how to manage and mitigate them by understanding Trademarks, Intellectual Property, Copyright, Patents, and general protection and insurance for your business.

Thanks to members, MeyerWest IP and Davelcorp, for their contribution to our group discussions.

How to protect your business from IP Risk

By André Meyer – MeyerWest IP

Intellectual Property (IP) rights is an umbrella term referring to various rights to  protect the products of creative effort. Examples of IP rights include:

(i) Patents, which protect novel and non-obvious inventions. An invention can be a new product, compound, system, method etc.

(ii) Trademarks, which protect signs used to distinguish the goods or services provided by a business to ensure they can’t be used by other businesses. Examples of trademarks include brand names and logos.

(iii) Copyright provides exclusive rights to the authors of certain works to reproduce and exploit such works. For example, copyright can protect business manuals, information provided on a website, and architectural drawings.

(iv) Registered designs protect the novel appearance of a product. For example, the shape of a new chair or the pattern of a fabric.

(v) Confidential information, which relates to valuable confidential information like  the unique recipe for a food product. For example,  the recipe of Coca Cola or KFC’s secret herbs and spices.

You can find more information about Types of IP here

Ask yourself these questions:

1. What steps have you taken to protect the name and reputation of your business?
2. What steps have you taken to protect your sensitive business information, such as client lists and confidential processes, against misappropriation by exiting employees?
3. Do you have any internal processes to capture possible valuable intellectual property created by yourself or employees?
4. What steps do you take when branding new products or services to ensure it does not infringe third-party rights?
5. Do you know the differences between trademarks, business names, company names and domain names? Find out more
6. What about the difference between Business Names, Trading Names, and Legal Names? Find out more

How to protect your business from General Risk

By David Ferris – Davelcorp Insurance Brokers

Every business creates or is exposed to risk. This simply rises  from the entity’s very own existence.

Business owners invest considerably to ensure their operation is properly structured, adequately resourced, and suitably positioned for longevity of desired financial outcomes. However, it’s imperative to recognise exposures that could potentially cripple the business you have built. The implications mightn’t just affect you as the business owner. Your customers, suppliers, employees, and their families may also feel the impact.

Potential risks and their causes need to be identified to understand the effect and then impact each may impose upon a business.

While many risks in an organisation can be ‘managed’, it comes down to  the financial ability of each entity to withstand certain risk impacts. This  influences the decision whether risks need to be ‘transferred’ via insurance.

Once an understanding of your unique risks has been developed, you can then evaluate which risks should form a part of your insurance strategy.

If  your only ‘risk management plan’ is to transfer via insurance, you may not even qualify within an insurer’s ‘appetite’.

If you are sufficiently skilled in understanding potential risks and confident regarding insurance products, insurance terminology, and the insurance market, you can seek placement with the limited available Direct Insurer ‘non-advice’ options. Alternatively, you could consider engaging an Insurance Broker to serve as your risk and insurance advocate.

Ask yourself these questions:

1. What process do you usually undertake to review your own business risk profile?
2. Have you or someone you know ever experienced a detrimental effect from a risk you weren’t physically or financially prepared for?

Recognising that the only compulsory insurances are CTP, Workers’ compensation, and Professional Indemnity, where mandated by a professional body or client, do you protect your business from?

1. The potential of a legal action against you by a third party?
2. Defamation, libel, or slander perpetrated via your social media?
3. Cyber risk – extortion, social engineering, fraud, or denial of access?
4. Wrongful acts by executives, directors, or management?
5. Business Interruption contingencies (post insurable loss)?

Here are some addition resources to assist you as you explore risk in your business:

• Why Risk Management is Important
• Risk Management Process Framework
• Reducing Risk from Business Interruptions Using Insurance

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About MyCommunity

MyCommunity is a group of free member programs exclusive to the Sydney Hills Business Chamber. MyCommunity groups and activities are led by a committed network of volunteer business leaders who facilitate activities that provide support to other members through the sharing of knowledge, expertise, and time.

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