Every business needs a risk manager
But first, what does a risk manager do?
Saying every business needs a risk manager is a big statement. But it’s true. Every business could do with a risk assessment from a risk manager.
A risk manager’s job is to protect you and your business from all the things that could go wrong.
With experience on their side, Risk Managers are trained to see the risks you may miss or not even consider. Known as a risk assessment.
They then come up with strategies to manage, minimise or transfer risk in ways that protect your business and help you confidently mange the day-to-day.
A risk manager will sit down with you and have a look at everything that happens in your business, so they have a full picture of where the risks are. They need to understand:
- What your business does
- How and where it operates
- Who you work with and employ,
- And any external factors that could impact your business.
1. What could go wrong? What's the Risk?
Us Australians are a positive bunch.
We like to think nothing will happen to us, and if it does, it’ll be right mate. But that positive attitude doesn’t do us any favours when it comes to protecting our business.
2.What would be the impact?
Part of the risk assessment is understanding the impact something going wrong would have on your business. Using statistics they can predict the likelihood of it happening to you (Probability) and the actual lost you’d experience (Severity).
Could you still operate? Would you lose money? Would you need to let staff go? What happens to your day-to-day operations? Etc.
Understanding how things impact you could mean the difference between surviving or going out of business.
That’s why our risk managers cover impacts across three key areas;
3. What can they do about their risk?
Most people assume that because we’re an insurance broker our answer is always going to be insurance.
But that’s not the case.
There are many ways to approach risk. When the team at SPT carry out a risk assessment there are always options laid out that help you;
- Manage your risk
- Minimise your risk
- Transfer risk
What your risk management strategy looks at will depend on your business, risks you’re willing to take (based on your risk profile) and what’s the most cost effective for where your business is at
Are you confident your business is protected? Do you have adequate cover? Are you ready for a risk management plan?
Unsurprisingly, most people answer no or I don’t know.
One reason is because the way we work and the world we operate in is constantly changing.
It’s also why Risk Managers recommend you review your risk profile each year.
That way you can manage and run your business without worrying about how you’ll cope if something goes wrong.
You’ve already planned for it. And that’s a good thing.