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How to build a Risk Management Plan for your Business

Research has shown that protecting business and family assets is a top priority for business owners.

And it should be! Your business is your livelihood – and your dream come true.

But, do you have a Risk Management Plan?

We have many clients come in, expressing concern about what would happen to their business if there were to face a major challenge. A Risk Management Plan is a simple solution – to get your business in order, and to help you sleep at night!

 

The steps to building a Risk Management Plan

The building blocks of a Risk Management Plan involve identifying potential risks, assessing your exposure and developing strategies to manage risks.

This way, we can find ways to minimise the impact if ‘the worst’ happens – and help your business recover quickly.

Identifying risks in business

There are several factors that could be posing a risk to your business. Risks can be internal (staffing problems, poor financial management) or external (environmental, technology.)

They can directly or indirectly affect your business’s ability to operate.

Consider your crucial business activities. Things like your primary services, resources and staff – and things that might impact them.

Some of the more common risk categories are:

  • legal issues
  • technology changes
  • regulatory and government policy changes
  • a natural disaster
  • work health and safety
  • security
  • staffing
  • suppliers
  • market changes

Assessing the risks

Once you have identified what might be a risk to your business, you need to assess your ability to cope with them. Have a think about

  • which risks pose the biggest (or most immediate) threat?
  • which will cost you the most, should it occur?
  • what is the probability of the risk occurring?

Think about potential future events that could affect your business. Analyse the scenarios that might lead to an event – and what the possible outcomes might be.

Use flow charts and checklists to assess your work processes. Identify each step in your processes and think about the associated risks. Ask yourself what could prevent each step from happening? How that would affect the rest of the process?

Developing strategies to reduce the risk

That’s where we come in!

We can show you which risks your business is facing and provide you with a risk management plan how to either avoid, reduce, transfer or accept those risks.

We can work with you to develop some great strategies to ensure you and protected.

Contact us today to begin your risk management journey – and sleep better at night!

There are also other resources you can use to help – The NSW Government has created a Risk Management Toolkit and the Federal Government has a great checklist for preparing for an emergency.

 

 

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