Risk management | Small Business [PDF]

A risk can be defined as an event or circumstance that has a negative effect on your business, for example, the risk of

4 downloads 66 Views 208KB Size

Recommend Stories


Book Small Business Management
Forget safety. Live where you fear to live. Destroy your reputation. Be notorious. Rumi

Information Technology Management: Small Business
The butterfly counts not months but moments, and has time enough. Rabindranath Tagore

Risk Management for e-Business
Before you speak, let your words pass through three gates: Is it true? Is it necessary? Is it kind?

[PDF] Small Business For Dummies
Don't be satisfied with stories, how things have gone with others. Unfold your own myth. Rumi

1995 - Small Business Institute [PDF]
May 21, 2004 - Dewey E Johnson. 24. Sexual Harassment: No Immunity for Small Business. ○ William T Jackson. ○ Geralyn McClure. Page 2 of 4. Small Business ... small firm failure . . . comparisons are needed between successful and failed ...... re

[PDF] Accounting For Small Business
No amount of guilt can solve the past, and no amount of anxiety can change the future. Anonymous

[PDF] Business Market Management
Stop acting so small. You are the universe in ecstatic motion. Rumi

PdF Business Marketing Management
You're not going to master the rest of your life in one day. Just relax. Master the day. Than just keep

[PDF] Business Marketing Management
When you do things from your soul, you feel a river moving in you, a joy. Rumi

Termite Risk Management PDF
Don’t grieve. Anything you lose comes round in another form. Rumi

Idea Transcript


Skip to main content

Sitemap Accessibility Contact us

Search

Search this site

Popular links

Go to whole of WA government search

I need business advice

I am in dispute

Templates, guides & tools

About

You are here: Home › I need business advice › Insurance and risk management › Risk management

Risk management

Insurance and risk management

What is a risk? Preparing a risk management plan

Insurance

Risk management is a process in which businesses identify, assess and treat risks that could potentially affect their business operations.

Risk management Dealing with unexpected events

What is a risk? A risk can be defined as an event or circumstance that has a negative effect on your business, for example, the risk of having equipment or money stolen as a result of poor security procedures. Types of risk vary from business to business. You must decide on how much risk you are prepared to take in your business. Some risks may be critical to your success; however, exposing your business to the wrong types of risk may be harmful.

strategic –decisions concerning your business’ objectives compliance –the need to comply with laws, regulations, standards and codes of practice financial –financial transactions, systems and structure of your business operational –your operational and administrative procedures environmental –external events that the business has little control over such unfavourable weather or economic conditions reputational –the character or goodwill of the business. Others include health and safety, project, equipment, security, technology, stakeholder management and service delivery.

Preparing a risk management plan Your risk management plan should detail strategies for dealing with risks specific to your business. It’s important to allocate time and resources to preparing your plan to reduce the likelihood of an incident affecting your business. You can develop a risk management plan by following these steps: Identify the risk Assess the risk. Treat the risk. Monitor and review.

1. Identify the risk Undertake a review of your business to identify potential risks. Some useful techniques for identifying risks are: Evaluate each function in your business and identify anything that could have a negative impact on your business. Review your records such as safety incidents or complaints to identify previous issues. Consider any external risks that could impact on your business. Brainstorm with your staff. Ask yourself ‘what if’: you lost power? your premises were damaged or not accessible? your suppliers went out of business? there was a natural disaster in your area? one of your key staff members resigned or was injured at work? your computer system was hacked? your business documents were destroyed? 2. Assess the risk You can assess each identified risk by establishing: the likelihood (frequency) of it occurring the consequence (impact) if it occurred TIP: The level of risk is calculated using this formula: Level of risk = likelihood x consequence To determine the likelihood and consequence of each risk it is useful to identify how each risk is currently controlled. Controls may include: elimination substitution engineering controls administrative controls personal protective equipment. A risk analysis matrix can assist you to determine the level of risk. Download the risk analysis matrix 3. Manage the risk Managing risks involves developing cost effective options to deal with them including: avoiding reducing transferring accepting. Avoid the risk - change your business process, equipment or material to achieve a similar outcome but with less risk. Reduce the risk - if a risk can’t be avoided reduce its likelihood and consequence. This could include staff training, documenting procedures and policies, complying with legislation, maintaining equipment, practicing emergency procedures, keeping records safely secured and contingency planning. Transfer the risk - transfer some or all of the risk to another party through contracting, insurance, partnerships or joint ventures. Accept the risk – this may be your only option. 4. Monitor and review You should regularly monitor and review your risk management plan and ensure the control measures and insurance cover is adequate. Discuss your risk management plan with your insurer to check your coverage.

More information Read CPA Australia’s publication Risk management guide for small to medium businesses Download the Good Security – Good Business booklet for information on risk management and business continuity Develop a business continuity plan to deal with unexpected events Ensure your business has adequate insurance

Home Privacy Disclaimer Copyright © 2016 Small Business Development Corporation (all rights reserved)

wa.gov.au

Building your knowledge - Business insurance PDF

Risk analysis matrix DOC

The most common business risk categories are:

1. 2. 3. 4.

Publications

Level 2, 140 William St, Perth Advisory telephone: 13 12 49 Email: [email protected] Directions to our office

Contact us

Smile Life

When life gives you a hundred reasons to cry, show life that you have a thousand reasons to smile

Get in touch

© Copyright 2015 - 2024 PDFFOX.COM - All rights reserved.