Web development patterns and workflow

Risk and Liability Management

Whole seminars, courses, and consulting firms exist on the sole topic of risk and liability management at all corporate levels. From a definitional standpoint, risk management is the identification, assessment, and prioritization of risks.

The concept is that simple every-day practices can be employed to manage your level of risk and to decrease the probability of a damaging scenario occurring. The web design industry is no different in this regard, and I’d encourage you to ponder what risks you face and how you can manage them.

• File and server integrity
Backing up files both locally and on web servers as a regular routine limits the risk of a loss of important information or data during or after a project. Most often these tasks can be scheduled and automated so as not to interfere with project work or billable hours.

• The human factor
Mistakes in code, work, communication, or other business tasks can create legal or financial risk in certain scenarios – and this risk is heightened when there are several employees working under one web agency rather than an individual freelancer. Always be aware of the human factor and take steps to prevent potential risks occurring, such as proof-reading, collaboration for accountability, and employing technology to this end.

• Avoid risks altogether
Even if you’re desperate for the work and the accompanying pay check, some projects are simply not worth the risk. If you’re contemplating beginning work with a questionable client, or employing code and frameworks with which you simply don’t have the adequate experience, don’t.

There are a variety of formal risk identification and assessment processes that can be undertaken by your business a good place to start is to check out the resources offered by the International Organization for Standardization (better known as “ISO”).

Insurance
A third option to reduce the risk and damages that may accompany a breach of duty is indemnity insurance. Indemnity insurance is a service offered by commercial insurance providers that provides financial protection from claims levied against your business for a monthly or annual fee. There are a variety of insurance providers, types of insurance, and variation in what specifically is covered. If your organization has begun to operate at the professional level, business insurance is certainly worth looking into and investigating for the return on investment.

Professional liability insurance, as it is also referred to, doesn’t only apply to web design agencies, but also individual freelancers. Indeed, if an individual web designer has even one claim put against them, their personal finances are at stake rather than the accounts of an incorporated business entity.