Risk Management (RM) involves assessing the likelihood of an event occurring that in some way impacts on you and putting in place appropriate processes to reduce or avoid the risk.
If you are in business or contemplating acquiring a business it is important to understand the RM process. By ignoring risk or not giving it your due attention, the consequences could include:
- breaching various statutes, regulations or codes;
- risking the health and safety of yourself, employees, customers, invitees and others;
- damaging the reputation and credibility of yourself and the business;
- potential litigation action being commenced against you;
- potential fines being issued against you;
- breach of contract;
- breaching loan/mortgage/guarantee or other security you may have entered into (if any);
- adversely affecting the financial viability of yourself and the business;
- among other risks.
At Greyson Legal | Business Lawyers, we offer advice and assistance with implementing sound legal risk management practices to help minimise the level of risk faced by you and your business.
If risks are not properly identified, they cannot be adequately analysed, evaluated, treated and monitored.
We can assist by:
- undertaking a Business Legal Risk Audit; and
- preparing a Legal Risk Management Report.
In summary the audit and report will:
- identify legal risks specific to your business and/or industry;
- analyse those risks (that is, establish which risks are minor, which may be acceptable risks and those that are major risks and therefore must be specifically managed);
- evaluate these risks (this may include ranking risks in order of priority. Risks with the highest level of risk may need immediate action).
This can then assist you to:
- treat these risks through appropriate decision making and putting in place necessary mechanisms to manage the risk;
- monitor and review these risks (remember, risks do not remain the same so it is important to constantly monitor and evaluate the strategies you are using to manage risk).
It is important to also consider undertaking an appropriate costs/benefit analysis to ascertain the best treatment option for a particular risk. This will entail comparing the benefits of implementing a treatment plan against the cost of that implementation.
Contact us for further information:
T: (07) 3142 0463
The material provided in this document is for general information only and is not to be relied upon as advice. No responsibility is accepted for any loss, damage or injury, financial or otherwise, suffered by any person or organisation acting or relying on this information or anything omitted from it.
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