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Risk Management: 3 Keys to Success for your Cannabis Business

The Cannabis industry continues to boom as legalization increases across many States and jurisdictions. It’s an exciting time to be a part of this new age of legalized cannabis, but if you own and operate a cannabis business, you know the risk that comes with the territory. 


Since cannabis is still not federally legal and is still a newly regulated industry, there are many hoops that business owners must jump through and updates that must be made frequently to maintain compliance. 


A single oversight or mistake can cost you thousands in fines, employee training costs, and loss due to suspension of operation. So where are the biggest risks in the Cannabis industry, and how can you manage these risks and position your business for success? 


In this article, we are discussing compliance and risk assessment in your Cannabis business and sharing 3 risk management strategies to help you successfully prepare your business for compliant operations and profit. 


Table of Contents

  1. The Types of Risk In Your Cannabis Business
  2. Why Compliance & Risk Management Strategies Are Important
  3. 3 Risk Management Strategies
  4. How BuildMySOP Offers Risk Management Solutions



THE TYPES OF RISK IN YOUR CANNABIS BUSINESS

Whether you operate manufacturing, dispensary, cultivation, or transportation facilities, the risks for operations in the Cannabis industry are vast. 


So in order for a facility to succeed, owners have to foresee the risks in every facet of the operation. Collecting data and analyzing the results, procedures, and practices related to every part of the operation is crucial for risk management practices. 




The most common risks lay in the following areas:


Banking

Because Cannabis legalization is limited to States and local jurisdictions, many Cannabis operators are unable to open bank accounts due to its “controlled substance” status. 


Cannabis banking reform is underway by the National Cannabis Industry Association (NCIA) as they lobby Congress for change. Progress has been made, but still the Cannabis industry awaits for laws to change so that there is universal access to banking privileges. 



Safety & Health

Different facility types come with different risks to safety. As we mentioned before, theft and robbery are some of the biggest risks as most businesses are cash-based, while product transportation and delivery also present highly vulnerable situations for robbery. 


There are health and safety hazards in relation to Cannabis cultivation, manufacturing, distribution, retail, and laboratory facilities.  OSHA has implemented health and safety regulations in relation to risks like