Managing risk in business
Risk is a part of business but with a good risk management plan you can determine not only what risks your business is exposed to but also what you want to do about it. This video will help you get started on identifying the potential risks to your business and your next steps.
Things to consider while building your risk plan
- Don’t feel you need to do it all in one go – it’s okay to take your time. Start with your draft plan and continue to refine things from there.
- The secret is to keep your plan short and practical, so it’s easy to implement – otherwise it’ll end up gathering dust.
- No business is the same, so it’s important to think about the common foreseeable risks that are unique to your business.
- If you have employees, it’s a good idea to talk to your staff to get their perspective of the known risks and invlove them in the planning process.
How to use our risk management plan template
- Work your way through the template section by section, filling in the empty boxes.
- Brainstorm all the different risks that could possibly impact your abilty to do business successfully.
- From your brainstorming exercise, identify the five key risks that your business could most likely face.
- Rank the risks by probability, consider which are the most critical areas of your business, where your business is most vulnerable, and what risks are priority (most likely to happen).
- For each risk you will need to determine whether you will accept, manage or transfer the risk, for example:
o Accept – If something happens, you understand the consequences and you choose to accept it. This could be happening right now, if you haven’t had a risk plan before, or thought about the risks in your business. By default you are accepting the risks.
o Manage – You understand the risks and have made a conscious decision to minimise or reduce the impact to the business, through proactively managing the risks.
o Transfer – Where applicable, the risk can be shared via insurance and the payment of premiums. - For each risk identified, create an action plan (where applicable) to mitigate and manage the risk. Essentially, what are the key actions that need to be implented, by who and by when. Making sure you have clear roles and responsibilities.
Risk management plan template
Use this template to help write your risk management plan.
Next steps
The key to getting ahead is just getting started. So, start your risk management plan today. When it comes to writing a plan, perfection can trip many of us up, and we don’t get it finished. So, here’s a tip, done is better than perfect as perfect never gets done.
It’s a great idea to get your staff involved and practice your plan. This way, everyone knows their roles and responsibilities.
It’s best practice to monitor and review your plan. Things can quickly change, so might your key risks as your business evolves and grows. Treat your plan as a living document, not something that you dust off, when the worst happens.
Contact an ANZ Business Specialist
Our specialists understand your kind of business and the challenges you face as a business owner. We can help you figure out how to make your business grow and succeed.
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