Managing risk during business recovery

Content Summary

Being in business is a risk, and not all risk can be managed. The more you try to manage risk, the less focus you have on your business, and that will eventually have a negative impact. In short, focusing too much on reducing risk is a risk itself.

Every business is subject to possible losses from unmanaged risks. Sound risk management should reduce the business impact if a negative event occurs.

Risk management starts with identifying possible threats or risks, considering their likelihood, assessing your risk appetite and implementing processes to minimise or negate them.

Sound risk management can have many benefits, including:

  • lowering insurance premiums
  • reducing the chance that the business may be the target of legal action
  • reducing cash or stock losses
  • reducing business downtime.