When your “to-do” list is full of things that feel immediate and concrete, planning for the unexpected may not be your top priority. But managing risks proactively can help avoid negative impacts to your business.
Put simply, a risk management plan helps your business become more resilient. It can help you protect your reputation, minimise losses and avoid wasting time reacting to issues without a clear plan.
A risk management plan details how you can manage any significant risks that could impact your business. To create one, you first need to identify potential risks. Then assess them to decide which are the most important to consider. And from there you can develop a clear plan to minimise or manage those risks.
There are multiple ways you can approach this. The government offers a range of tools to help businesses with risk management planning.
It’s important to understand the different types of risks your business might face. It will vary business to business. Some of the areas you might consider include:
When exploring financial, legal, or regulatory risks, it’s critical to consider where you need professional help by engaging experts.
Many businesses use digital tools to perform critical tasks. From mobile phones to collaboration apps, cloud services, your website, EFTPOS solutions and many more. These tools rely on multiple layers of technology to operate – power, devices, network connectivity and applications that may operate from servers around the world.
As part of risk management planning, you should audit the technology you’re using and how you’re using it. You can then work through any risks you need to manage. Below we explore some things you could consider.
What applications do you use and what business functions do they support? If there was an issue with any of these applications, how would it impact your business?
Some business apps may work across multiple devices or offer functionality while offline. This means you and your team may have some flexibility to switch devices or perform some activities even if you’re not connected to a network.
Make sure you set up applications on all relevant devices and you’re clear on any important offline features. This could be helpful in reducing downtime, by refocusing attention to offline activities.
By thinking about these areas before an issue arises, you can develop an action plan. This will let you react more quickly should a disruption occur.
You may have business applications that rely on an internet connection to function. Consider how you connect to the internet and any risks associated with potential network disruptions.
Having more than one way to connect to the internet gives you an alternative if your primary connection is disrupted. So, you might want to consider how to enable your business apps on a range of devices so you can connect via fixed or mobile network options if needed. This can help boost the resilience of your business operations and offer you more flexibility in where and how you work.
Risks to business and customer data are growing as cyber criminals are becoming more sophisticated. Take time to understand threats such as business email compromise.
There are a range of steps you can take to help protect your business from cyber criminals. They include:
Creating a safe workplace for you, your employees and your customers is also part of risk management planning. This can help minimise injuries and illness.
The shift to remote or hybrid working models has changed the meaning of ‘workplace’ for some businesses. And things are still evolving for many businesses.
Consider how to make hybrid working work for you, your staff and your customers. As part of this, think about your occupational health and safety obligations with respect to remote workers. It’s important to seek specialist advice if you need to.
The use of new digital technologies can also help you manage certain risks to your business. The Small Business and Family Enterprise Ombudsman highlights how small and family businesses can get more prepared, by digitising critical information.
Implementing the right backup strategy for your data will help ensure you can access it when and where you need to. Choosing solutions with security features built in, can also help you minimise the risks of data breaches.
Thinking about risks to your business proactively and systematically will help you develop a strong risk management plan. Consider how the technology you use might create risks, but also how it can help you minimise risks.
Building digital skills or engaging experts can help you enhance how you manage risks associated with technology and how you use technology to build a resilient business. Involve trusted partners who can help you think about risk management and disaster planning.
A clear action plan for dealing with the risks most likely to impact your business will help give you peace of mind. You’ll be able to react more quickly, should something go wrong and help protect your business into the future.
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