When you run a business, you always need to consider the worst case scenario. The worst case scenario will cause your business to fail on the market and you to lose the chance at making high levels of profit. It could even ultimately cause your business to shut down completely. So, it’s abundantly clear that it is worth understanding the issues that can take down a company. But to better understand the problems, it’s worth looking at real scenarios the businesses are facing right now. This will show you why you need to prevent your business from disaster.
1 Billion In Damages
A recent report has revealed that producers of the popular TV show The Walking Dead are seeking out 1 Billion in damages and lost profits. Many people have suggested that if the case is successful, it could end the show and even bring serious changes to the network. That said if one examines the language of the suit the suggestion is that The Walking Dead is actually a multi billion dollar franchise. As such, AMC could theoretically afford to protect themselves while still paying to settle in full. Though it’s still probably a cost that they would like to avoid and the legal battle could last years.
To protect themselves, the company should have known exactly how much the previous producers were entitled to. They could have done this by hiring a legal advisor. Now, it’s likely that AMC did take this step so it will be interesting to see whether the claim actually holds water.
Customer Complaints
Perhaps you run into the issue of a customer not being satisfied with the product or service they receive from you. Or, on a bleaker note a customer could have been negatively impacted by the service you provided. The most extreme example of this would be medical malpractice and the suits are incredibly common. Just this month a woman was awarded 1 million for a surgical mesh infection. The courts found that the doctors did not take the full risks into account. It proves that medical professionals need to protect their businesses with medical practice insurance. This can help with both legal issues like this and other more serious financial issues. It will ensure that the practice can continue to thrive even after a lawsuit like this.
Hacks And Theft
Hacks are becoming more common with an apparent trend particularly in theft of entertainment media. This month HBO has had to deal with the theft of data from their network that included episodes of shows that had not yet aired. The data was held to ransom unless the company agreed to pay up. When it failed to do so, the files were released. It’s worth pointing out that HBO will survive this hack. In fact, a recent leaked episode of Game Of Thrones had an increased number of views.
That said, for a smaller company it would be more difficult to bounce back. It could also lead to further lawsuits if sensitive data such as patient information or customer financial data was released. As such, it is absolutely crucial that companies invest in the best level of cyber protection available on the market.
These legal issues are just some examples of why businesses must do everything in their power to protect their interests.
