Risk management is a structured approach to managing uncertainty and includes actions taken to identify, assess, monitor and reduce the impact of risks to your business.

Risks are events, situations or circumstances which lead to negative consequences for your business.

A good risk management plan with appropriate risk management strategies can minimise costly and stressful problems, and may also reduce insurance claims and premiums.

Risk management plan

A risk management plan describes the potential risks and contains an analysis of the impact of each risk. It also includes risk strategies to help the business reduce the consequences if the event occurs.

Your risk management plans should be regularly reviewed to ensure they accurately reflect current potential risks to the business.

For additional information about risk management planning visit the following websites:

• CPA Australia's -  Risk managment guide for small and medium sized businesses
• Standards Australia has two publications on risk management:
  • Risk Management - Australian Standard AS/NZS 4360; and
  • Risk Management Guidelines - Handbook HB 436 - Companion to AS/NZS 4360
    
  • (These are intended to be used together, with the Handbook providing important commentary, guidance and examples on the implementation of the Standard.)

What's next...

• Call 13 12 49 to speak to an SBDC advisor
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