Cannabis Is Safe - But Is Your Company?

It bears repeating: as medicines (and “recreational additives”) go, cannabis is generally safe. You shouldn’t operate heavy machinery when under the influence, and you’re probably better off not getting high before a job interview. Still, as of 3 pm this afternoon, there was not a single documented death from a marijuana overdose. 

But while in the annals of medicine and recreational drugs, cannabis is considered of the “kinder, gentler” variety, that doesn’t mean running a cannabis business is risk-free.

Here are six of the biggest risks that cannabis companies face:

1. Product liability 

You have the ideal genetics; an incredible grow facility, and cultivators on staff who seem capable of bending cannabis plants to their will. But suppose that cannabis flower comes in contact with contaminants like mold, Aspergilli, or Salmonella. In that case, your customers could be at increased risk of contracting an illness, especially those with compromised immune systems. And for your company, the product liability lawsuit that may ensue could be dangerous indeed. 

2. Compliance failure

Who among us has not had the daydream where they’re sitting at work, trying to make sense of pages and pages of labyrinthine compliance guidelines? 

Most of us probably haven’t, and for good reason - following cannabis compliance guidelines can be a painstaking and frustrating endeavor, and probably not why you got into the industry. But failure to meet compliance guidelines and deadlines can result in fines, loss of license,  and potentially worse. In addition, because compliance guidelines are crafted in order to bolster workplace safety, failure to meet these guidelines will mean your company is more exposed to the litany of dangers facing cannabis brands.  

3. Worker safety issues 

The safety of your staff is of paramount importance - and cannabis workers face no shortage of health and safety risks. These include exposure to mold, fungi, and other contaminants, chemicals used in extraction, and the sorts of devastating slips and falls that can happen to workers across all industries. And beyond the safety risks to employees, companies run the risk of having to cope with workers' liability claims.  

4. Cyber attacks 

Cannabis companies may not think of cyber threats when pulling out their company structure and protocols, but anyone can be a target for cybercrime. Threats include ransomware attacks that halt operations and hold company assets and data hostage, remote attacks that knock IOT cannabis production lines out of commissions, or data breaches that leak the private medical information of cannabis patients to the web. 

5. Robbery

Flush with cash and cannabis products, dispensaries make an especially appealing target. 

“It makes absolutely no sense that legal businesses are being forced to operate entirely in cash, and it's dangerous - and sometimes even fatal - for employees behind the register,” Washington Sen Patty Murray told the Associated Press.

Until federal legalization becomes a reality, cannabis companies will face serious banking hurdles that will continue to endanger their businesses, employees, and customers.

6. Failure to stand out in a saturated marketplace

According to the Whitney Economics U.S. Cannabis Business Conditions Survey Report, only 42% of cannabis businesses are profitable. And a year earlier, the MJBizDaily 2021 Marijuana Business Factbook found that market saturation in cannabis “often leads to more pressure on price and steeper competition to reach a limited pool of customers.” 

In addition, retail cannabis prices have remained steady or have dropped while so much in the rest of our world is getting more expensive by the day. 

Cannabis companies are being squeezed on both ends lately - by inflation that has driven up labor and operating costs and cannabis prices that have largely remained flat. 

What endangers your customers and your staff endangers you 

To weather the risks in cannabis, companies must be willing and able to adapt and shift their operations as needed. 

If product prices have remained static, companies should be strategic with their inventory and favor known customer favorites over stocking an ever-wider variety of products that may languish on the shelf.  

In the face of cyber threats, cannabis companies must teach good cybersecurity practices to their employees and enact cyber policies in their daily operations. Employee education and safety training are also crucial to protect against armed robberies and to know how to react in the event of a robbery. 

To prevent or dramatically reduce workplace hazards and the likelihood of contamination, companies must instill a “safety culture” in the workplace through employee education and the regular reinforcement of safety programs and hygiene protocols as part of each worker’s daily operations.  

Companies can also use digital education and compliance tools like the Rootwurks Learning Experience Platform. 

But luckily, as vexing as compliance guidelines can be, they are also written with safety in mind. These guidelines can serve as a road map of sorts for companies that want to know exactly what steps to take to create a safer workplace. 

But the best rule of thumb for cannabis companies is if something potentially endangers your customers, your workers, or your inventory, it threatens you and your business as well.  

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