This is a good, quick-read hit list of easy Risk Management steps for small businesses.
I just gave a talk today on this very subject to a group of business owners and advisers.
The major item that this list leaves off is: Consult with an experienced business attorney!
I know that this seems to be a shocking bit of advice, coming from an attorney. All sarcasm aside, consulting with a experienced business attorney before engaging in new business activities (whether it is forming new companies, hiring new employees, or entering into new deals with clients or vendors) is one of the most cost-effective steps a business can take in mitigating liability and saving costs. Think of it as a combination of early warning radar and missile defense shield for your business. A few minutes of well timed advice can save tens (and even hundreds) of thousands of dollars in containing and cleaning up messes that were imminently preventable in the first place.
It all boils down to this: even a minimal investment of money and time in risk (and by extension liability) analysis and management can pay huge dividends for a small business. And in this economy, what small company can afford to pass up small investment that will yield huge returns?