What is the primary focus of risk assessment in a commercial cannabis business?

The primary focus of risk assessment in a commercial cannabis business is to identify potential risks to business objectives. This involves recognizing a wide range of risks that could impede the company's ability to achieve its goals, such as operational disruptions, legal challenges, market volatility, and security concerns. By identifying these risks, businesses can develop effective strategies to mitigate them, ensuring smoother operations and stronger resilience against unforeseen challenges.

This approach is essential in the cannabis industry, where regulatory compliance is stringent and the market is rapidly evolving. Identifying risks enables businesses to proactively manage threats and make informed decisions to safeguard their objectives, reputation, and financial health. While financial implications, regulatory compliance, and employee performance are important aspects of a commercial cannabis operation, they serve as factors that can influence risk assessment rather than its primary focus.