Top 10 Tips For Improving Risk Management


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Top 10 Tips:

Top 10 Tips Improving Risk Management For

Management Risk is a Value Add:

Management Risk is a Value Add It is not a separate process - Integrate it into your decision making processes It is a tool to help implement your business strategies Ask what you need to get right to successfully manage your business and achieve your goals

Establish your business and personal priorities:

Establish your business and personal priorities Set the risk thresholds for your corporate and operational strategies Clear priorities mould your organization's culture and its attitude towards the business stakeholders Incorporate measurement of the businesses risk profile at regular Director / Senior Management meetings

Decide You Your Business Risk Appetite:

Decide You Your Business R isk Appetite Establish the type and level of risk your business will carry Communicate this to the relevant senior management within the business Reconsider the Company's risk appetite in conjunction with changes in the business environment

Ask Questions Constantly:

Ask Q uestions Constantly Probe Company management regarding business performance and management in conjunction with each other Questioning highlights the desire to be proactive towards risk management Be open minded when asking questions and receiving the responses

Integration of Risk Management:

Integration of Risk Management High business performance and good risk management to have same emphasis Consider risk management implications to current and new business activities Management reports to include risk management report as well as all other activity and performance reports

Use All Information Sources:

Use All Information Sources Get all levels of the workforce to provide information on potential risks Talk to external stakeholders such as auditors, financiers, key customers and suppliers Robust risk assessment can also uncover hidden opportunities to improve your business

Allocation Priorities to Identified Risks:

Allocation Priorities to Identified Risks Identify major risks and work on these first (e.g. WHSE&T, excess debt) Accept that you cannot manage all risks facing the business at one time Understand the risk management processes for each of the major risks and report regularly

Risk Benchmarks and Indicators:

Risk Benchmarks and Indicators Use the Company audit reports (internal and / or external reports) Indicator information come from financial data, customer / supplier communication and scanning the business environment Align the reporting process to the agreed indicators Use lead and lag indicators

Use Software Tools:

Use Software Tools To assist in risk identification To assist in management To assist in reporting To assist in review

Risk Management Structure:

Risk Management Structure Match the structure to business size and complexity Appoint one person or small group of people to be responsible for structure, operations, effectiveness, reporting and review Challenge management, management activities and Director activity Have a clear agenda and policy for risk management.

Thank You For Watching:

Thank You For Watching Risk Management | Financial Planning

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