If you’re not prepared, unexpected events can have a serious impact on your business. Follow these steps from the Australian Government to protect your business and keep it strong, resilient and ready to handle any surprises.
1. Understand the risks to your business
Business risks are anything that could have a negative impact on your business. Business owners need to protect themselves, their employees and the businesses. For example:
* Work health and safety issues
* Natural disasters and emergencies
* Economic conditions
* Government regulations
* Technical problems or cyber security incidents
* Legal issues
* Criminal activity
* Negative reviews or media coverage, and
* Staffing issues.
Understanding and managing risks helps minimise the impact of unexpected events. It can also reduce costs and improve your relationships with customers and staff.
2. Make a plan to manage risks
A risk management plan explains how you’ll deal with risks to your business.
Identify the risks to your business and how serious each one is. Then decide which risks are serious enough to treat and come up with strategies to manage them.
It’s important to include your staff and other stakeholders in this process. They can help you identify your biggest risks and suggest ways to treat them.
3. Get the right insurance
Insurance helps manage risks by protecting your business against financial loss.
Your business may need certain types of insurance by law or because other businesses you deal with require it. Other types of insurance are your choice.
It’s a good idea to get professional advice to make sure you have the right insurance.
4. Create policies and procedures
Clear policies, procedures and processes help manage risk in your business.
They ensure that everyone in your business understands what to do and exactly how to do it.
5. Look after yourself
Being a business owner can be stressful. And it’s hard to stay focused on your business if your mental health is suffering.
Some things that commonly cause business owners stress are:
* Long hours
* Heavy workloads, and
* Business finances or cashflow.
It’s important to learn the signs of stress and how to reduce its effects.
Get help from a trained mental health professional if you need it. There’s someone ready to listen and talk to you 24 hours a day, 7 days a week.
Checklists and more detailed advice are available at business.gov.au.