08 March 2022
By Mark Giglia, Director AR Advisors
There are things we can’t control – the weather, COVID and the global economy for starters – and things that we can. In business, it’s the things we can control that are the focus of a risk assessment.
Resourcing, operations, OHS, technology, succession planning, customer retention and financial reporting are all aspects of our business that need regular review from a risk management perspective. But how do you know what questions to ask? How do you determine the level of risk posed to your business? And why does it matter anyway?
A risk assessment is a health check for your business. And just like a health check, it identifies the areas that you should be focusing your energies on. Busy business owners can all too often overlook the detail, taking the broad view that their business is “doing okay”. But asking questions from a risk management point of view will usually identify concerns that can be easily rectified, often with big benefits.
Business risk is closely aligned with business growth, so decreasing the high-risk factors will not only ultimately improve the value of your business, but your business may struggle to grow if areas of concern are not addressed.
The information gathered during a risk analysis rolls neatly into the SWOT analysis required for your annual strategy planning day. You’ll get a feel for how many things you need to work on, can prioritise them and put strategies in place to work on them.
It all sounds great in theory, but where do you start? Our free Business Risks Survey is one of the easiest ways to get the process underway. The survey provides a short series of questions designed to help you identify and assess your key business risks.
Based on your answers, you’ll receive a business risks score and a break-down of the low, medium and high-risk business drivers specific to your business, along with an overall rating and a score against the industry benchmark. It’s a simple but effective way for any business to get the conversation started.