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. Download the Risk Analysis Matrix (2-page Word doc 72 KB) for examples of the different types of risks your business might encounter.

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.

Download the Risk Management Plan (PDF 703 KB) for an easy to follow step-by-step guide to developing your own risk management strategy.

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 also has two publications on risk management which will be useful when developing your risk management plan. These publications, Australian Standard AS/NZS 4360 Risk Management and Handbook HB 436 Risk Management Guidelines - Companion to AS/NZS 4360 are intended to be used together, with the Handbook providing important commentary, guidance and examples on the implementation of the Standard.

What's next...

• Discuss with an SBDC advisor any further questions you may have.
• If you are a member of an Industry Group or Association contact them for recommend insurers that specialise in your field, or give special discounts or offers to members.