Due diligence involves the investigation, audit, care, or review that a reasonable person will do to avoid harming persons or their property. As a cannabis business owner, due diligence is the most important thing you can commit to if you want to protect your investment.
Strict regulations are in place for every aspect of a cannabis business. However, policies change and are handled differently from state to state. To ensure you stay in compliance, it’s important to have clear procedures for every aspect of business. It’s equally important to educate employees and ensure they stick with the rules.
To start, plan, develop, and implement processes to meet current regulatory standards, have a system in place to monitor and react to new policies as they materialize and come into play. Enact methods that will enforce those processes, with guidance on how to handle any violations as they come up.
Luckily, none of this has to be built from scratch. There are many guides, resources, and tools to help you implement quickly and create a plan you and your team can easily follow. Starting with a clear set of procedures and expected behaviors will leave nothing to chance. Develop expectations from day one.
Then ensure everyone on staff is clear about these procedures, and fully understands consequences if proper actions aren’t met.
Physical security
Top security requirements for any business always start with safeguarding people. Customers and employees must feel safe from the moment they enter until the end of the transaction, with both visible and reliable methods. That means including things like:
- Obvious video surveillance cameras at entry points and around the facility
- Covert security measures readily accessible
- Structural changes to secure the facility from all kinds of threats
- Enhanced security for better productivity – professional security personnel, automated locking systems, clear line security measures, etc.
- Testing and inspection drills to ensure effectiveness of the systems
The most sophisticated systems in the world are only as effective as the users. The strongest lock won’t block criminal behavior if the door is left propped open.
Cybersecurity
While it might seem that most risk in a cannabis business comes from physical threats, cyberattacks are now prevalent in every industry. Information is valuable, more valuable than physical products, in many cases. Cybercrime costs are expected to grow by 15 percent over the next five years, reaching $10.5 trillion annually by 2025.
Hackers have a lot to gain if they penetrate your database. While credit card information may seem like the highest payout, medical identification and personally identifiable information (PII) can be a jackpot. It can also put you in violation of HIPAA regulations if your business is structured around medical marijuana. From threatening crops and internal systems, to extortion and sabotage schemes, you can pay dearly for not having the proper security in place.
Where do you need help?
With so much riding on safety and security, reaching out for help can give you the expertise you need for future growth. Certain aspects may be apparent, but it’s the security features you don’t know or understand that should worry you the most. You can’t protect yourself from things you just don’t know.
That’s where seasoned professionals can help. Rely on our expertise to help get you where you’re going. Doing your due diligence early means less worry about what might go wrong over time.
For IT Strategy, Security and Compliance, or Help Desk Services, reach out to us at Cannabis Technology Partners 360-450-4759.
