Management Liability for Not-for-Profit Organisations
Australia has about 60,000 registered not-for-profit organisations, according to the Australian Charities and Not-for-Profits Commission (ACNC).
A major cause of the failure of small-to-medium-sized businesses’ (SME) is not managing their risks, research shows. The first step to boosting your approach is to assess risks regularly.
This article will step you through risk types, how to better identify, assess and reduce them overall. That means you’ll have increased protection against potential threats and be able to make better decisions. Aim to be proactive rather than reactive to risks.
Here are the main categories of business risks:
Check out this website for a deeper dive into the paradoxes of both/and thinking.
It’s worth being more systematic and strategic in risk management. Risk management is about the adequate allocation of business resources, and benefits to your business include being able to:
Victorian research has delved into how small, and micro businesses survived the Australian bushfires and pandemic. It found those who embraced risk management, planned resilience and connectedness – having a collaborative social network – were most successful. Planned resilience is about protectively using your company’s existing planning and capabilities to prepare for potential risks and hazards. It relies on your business continuity plan. Western Australia’s Small Business Development Corporation offers a useful guide and template.
Think of a risk assessment as a strategy to manage the risks to your business:
Assessing risks should be on your mind most of the time, but look for specific triggers to refresh your management strategy. They could include a major change to how you do business, a new product line/service or deleting one or a suite of them, or a new competitor, for instance.
While your business might not be big enough to invest in certification through the International Standards Organisation, it may help to check out its overview of risk management. The ISO 31000 Risk Management standard encourages organisations to consider risks in their structure, processes, objectives, strategy and activities.
A holistic and high-quality approach to risk management means committing to reducing your risks. The business.gov.au website encourages business owners to:
You’re on your way to a more holistic and regular approach to risk assessments. Be sure to factor in your insurance, which offers protection. We can guide you on best-risk management practice for your type of business.
Article supplied by OneAffiniti
Photo by Kings Access on Unsplash