Risk Identification, Mitigation & Prevention Strategies
Uncertainty is the bane of every small business. Getting blindsided by any potential unforeseen risk can have devastating effects on your planning.
Risk management is preparing for contingencies seen and unforeseen by having a thorough understanding of the organisation and the environment in which it operates as certain risks may be systematic or market (affecting all participants) and unsystematic (affecting just the business or specific industry).
You will find risk management shares commonality with internal audit and corporate governance as the best practices shared by them are your safeguards to avoid pitfalls.
Assess your current risk framework against the commonly accepted practice standards (ISO 31000; AS/NZS 4360; COSO) and against business objectives.
Elements of risk assessment strategy include:
- Designing a risk management framework
- Setting policies and processes
- Developing a risk strategy
- Implementation of the risk management procedures
- Identifying internal and external risks factors
- Establishing internal controls
- Compliance audit
- Offsite data warehousing
- Succession Planning