Managing risks in your business
Running a business comes with risks, but being prepared can help you stay ahead of challenges before they become bigger problems.
Managing risk is about protecting your cash flow, your people and your hard work. Here are four critical risks areas and key questions that need to be addressed and reviewed regularly.
Financial
| Risk factor questions | Mitigating factor/tools |
| Can the business pay its bills on time? | Cash flow forecasting |
| Is the business solvent? | Monitor net equity to ensure assets are greater than liabilities |
| Is the business profitable? | Monitor revenue, gross margin and overheads |
Compliance and regulations
| Risk factor questions | Mitigating factor/tools |
| Is the workplace safe for employees and visitors? | Maintain a WHS policy that complies with the relevant legislation |
| Are employees paid correctly and supported if injured? | Check award rates, maintain employment contracts and check WorkCover insurance |
| Are BAS, super, tax lodgments up to date? | Check MyGov, ATO deadlines and with accountant |
Cyber security and data
| Risk Factor questions | Mitigating factor/tools |
| Is business protected from cyber threats? | Implement the Essential Eight |
| Is your business data secure? | Use multi-factor authentication (MFA), secure software, off site cloud server |
| Are you aware of common scams? | Beware of scammers’ text messages, phishing emails and unsolicited calls |
Business continuity
| Risk factor questions | Mitigating factor/tools |
| What if the owner/director has an accident? | Consider key person insurance |
| What if a third party is injured? | Maintain appropriate public liability insurance |
| What if a natural disaster strikes? | Consider business interruption, asset protection insurance or a business continuity plan |
Taking small steps now to identify and manage risks can help protect your business, reduce uncertainty and give you greater confidence when challenges arise.
