Businesses across the board work day to day with a number of potential risks – from big ones like an unstable economy and ever changing technology, so more mundane ones like power failure and litigious staff members – so having a risk management plan in place is vital to keeping things running smoothly should something go awry.

When preparing risk management plans, first consider the risks your business runs each day. Risks faced by retailers will be different to those faced by accountants or financial planners, which will vary again from those faced by a construction company. The easiest way to figure out the risks faced by your business is to list your assets, activities and outputs, and match them up to potential actions or events that could adversely affect them. Don’t just rely on your own ideas – talk to business partners, staff, friends and family to ensure you have a comprehensive idea of conceivable risks.

Once you’ve identified your most likely risks you can set up strategies to combat them should the need arise. Your risk management plan should formalise the strategies to address potential risks, so that all your employees, business partners or contracted workers are aware of them. If need be, hold a team meeting to go through the rick management plan. If you have strategies that require very specific actions, consider setting aside a practical training day so everyone in your business is ready and able to combat potential risks.

Preparing risk management plans doesn’t have to be a negative experience. It’s also a chance to see what your business does well and where your strengths lie. You can also use it as an opportunity to streamline your processes or create a long term plan to build upon your strengths.

Once your risk management plan is in place remember – this is just the base line. As your business grows and changes, so should your risk management plan.

If you’d like to speak to someone about creating a comprehensive risk management plan for your business the team of experienced lawyers and accountants at the Quinn Group can help. For advice and appointments, call 02 9223 9166 or submit an online enquiry.