skip to log on skip to main content
VoiceOver users please use the tab key when navigating expanded menus

That boring topic called risk management

Key points in this article

  • Back up plan to protect against supplier issues
  • Taking economic conditions into account
  • Risks and disaster recovery

As a new and growing business, your mindset is not always focused on risk management – rather, how to make money and keep your business afloat. The first 12 months are critical for any business and that is when most tend to fail. The key risks that you might need to manage as a business going forward are outlined below.

1. Reputational risk

The value of your business lies in your brand. In your risk management policy you might consider putting in writing various controls to protect your brand including:

  • who will handle media enquiries
  • carrying out due diligence on potential business partners and online links.

2. Financial risk

How are you covering yourself against financial loss and cash flow shortages? Make sure you have:

  • a payment process
  • insurance policies
  • a good relationship with your banker
  • process for reviewing debtors weekly or monthly

3. Customer risk

This involves processes for customer complaints and customer response rates.

4. Supplier risk

Who are your key suppliers? If one of them is an IT provider, do you have service level agreements in place?

A sudden issue with one of your suppliers could put a serious break on business–
have a back up plan in place

5. IT risk

If you’re an online business, your key risk is loss of data or a website attack. You also need to consider: 

  • virus protection on your computers
  • data storage
  • backing up of information

6. Competitor risk

There is always the risk of competitors eroding your market share. What are you doing to stay informed about your industry and your

competitors?

7. Economic conditions

Diversify your product or service offering to offset peaks and troughs in your revenue cycles. You can also maintain adequate cash reserves to cover you for a slow period.

Certain economic conditions may dictate when you hold money in reserve
(and how much)

8. Key person risk

This is a big risk when you are a small or solo business. Some ways to mitigate risk include:

  • having personal trauma insurance
  • writing procedure documents so someone can fill in quickly
  • having a key contacts list

9. Business continuity and disaster recovery

There is always a risk that your office could be damaged by fire.
What would you do? Some considerations include insurance coverage and data storage offsite.

These risks are real and worth your time and consideration if you don't have a
risk management policy yet.

Get in touch

1800 801 485

Mon-Fri 8.30am to 8pm (AEST)

1800 801 485

Mon-Fri 8.30am to 8pm (AEST)

Any advice does not take into account your personal needs, financial circumstances or objectives and you should consider whether it is appropriate for you.

ANZ recommends you read the applicable Terms and Conditions and the ANZ Financial Services Guide (PDF 104kB) before acquiring the product.

This page contains only general information which is subject to change and is not a substitute for commercial judgement or professional advice. This information does not take into account your personal and financial needs, particular objectives and/or circumstances, and you should seek appropriate independent advice (which may include property, legal, financial, taxation and accounting advice) before making any decisions, investing, or acting on it.

Tools, templates, checklists, and calculators (“ANZ Tools”) linked or referred to on this page, are only some of many ways to analyse a business or industry, or to assist your planning and business decision making. You should seek the assistance of your accountant, business or other advisor when either planning for or analysing your business.

To the extent permitted by law, all members of the ANZ group of companies, their employees, officers and contractors (“ANZ“), offer no warranty and disclaim liability or responsibility to any person for any actions, claims, costs, demands, liability, or direct or indirect losses or damage that may result from using or relying on the information set out in the anz.com pages or the ANZ Tools, and / or any act, omission or error, by any person in relation to them.  To the extent permitted by law, ANZ makes no warranty and has no liability in respect of your use and reliance. ANZ Tools are also subject in many cases to further specific cautionary wording and disclaimers which you should read.

ANZ tools, templates and checklists are only some of many ways to analyse a business or industry to assist your planning and business decision making. You should seek the assistance of your business advisor or accountant when either planning for or analysing your business' performance. To the extent permitted by law, ANZ makes no warranty and has no liability, in respect of your use of and reliance on these tools.