Risks assessments identify potential hazards and their consequences. Companies use these to try to reduce business risks, create disaster recovery plans, and also purchase insurance for what they cannot completely control. According to the U.S. Small Business Administration, about a quarter of small businesses never recover after a disaster. Vulnerable companies need to identify potential problems in order to make plans to eliminate or cope with them. Of course, businesses also use this information to cover any risks that can't be completely controlled with proper insurance.