Risk management helps you make better business decisions, reduce and prepare for things that may have a negative impact on your business.
This could be natural or man-made disasters, economic turn-downs of workplace health and safety issues. Risk management also gives you the opportunity to identify positive impacts – and do more of those.
Risk management starts with identifying the different types of risk and when events in your business will allow you to control the opportunities and manage the uncertainties. As a business owner, you're required by law to manage some risks.
For example, you must manage or reduce the risk of:
- accidents and injury by making your workplace safe under workplace health and safety (WHS) laws
- customer complaints by treating customers fairly under Australian Consumer Law
- injury or harm to employees by having workers’ compensation insurance
- damaging the environment by meeting the environmental laws that apply to you.
Begin by finding out about risk management practices and how you can use them in your business. You should also talk to others involved in your business (including your employees and your customers) to work out the best way to manage risk in your business.