Manage your risks

Of all the risks an entrepreneur will face, regulatory risk has the largest impact as it has the ability to call into question the very existence of the business.
The brand promise of a business can also be destroyed if consumers perceive their brand is not compliant with government regulations; in summary, a business must be compliant with all government regulations.
How does a small business navigate regulatory risks? By recognizing the risks exist and mitigating them.
The founder and CEO should adopt the title of Chief Risk Officer.
Some recommendations;
1. When you start a business your professional partners, ie Accountants & Lawyers are very important. They must give the business the assurance that their business relationships are up to date and compliant.
Before you pay rent, let your lawyers confirm the landlord has the legal right to let out that premise. Same goes for any significant expenditure, do a professional due diligence first.
2. Also get your professionals partners to sign an indemnification agreement with your business. That agreement should cause them to indemnify your business should any adverse event occur after they have conducted a due diligence on your regulatory transactions and given it a pass.
3. Lastly, insure your core assets. Dont be “naked”. Insurance is “expensive” for a small business, but its key especially if the business will struggle to recover from a catastrophic event eg demolisment of premises.
In summary, trust but verify..
(Ethical Leadership.co.uk)