What Creates Risk?

Video Transcript

Larry Harb:             

 So, let’s talk about what creates risk and exposures. And I throw this risk up just because—most of this is common sense, but if you think about it, number one is gonna be human error. We’re people. We make mistakes. People who work for you are going to make mistakes. Equipment is going to fail. Sabotage. This one just blew me away, but we do a little bit more than just cannabis and in other industries that we do business in, sabotage is a big one. It just blows me away that people would sabotage a business just to buy things cheaper and stuff like that.

Third party failure. What happens if you’re a dispensary and now your supply chain is gone? Your grower doesn’t produce what they thought they were gonna produce and now you don’t have enough supply for all of the people who are coming into your location. So, third party failures. Back in 2008 when the banking system seemed like it was gonna crash, if you had line of credit and didn’t have it backed up and your bank was having issues, this could be a major problem for you as well.

Environmental hazards. Our offices are right next—we’re on Okemos Road in Okemos Michigan—but we are right next to the railroad tracks. My land butts up to railroad property. And every day when the train comes by, about four times a day, and they start blowing the whistle, it always makes me a little nervous, ‘cause if there was ever an environmental hazard, that’s what’s gonna cause it is the train. Bringing in things of that nature, something on the train, anything could happen—totally out of my control.