Business Risk Management

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Many companies are unaware of the numerous risks within their business and the potential dangers they pose to their trading ability. While it is true that investors can earn high returns by taking greater risks, there are dangers in using this approach. Various high-return industries like property development, auto dealerships, and agricultural companies are considered to be high-risk merchants.

As safety risk management consultants, we recommend that every high-risk merchant take measures to understand the business risk management issues involved in their industry to better control their business and adopt an effective management plan.

Understanding your business risks

Business Discussion

When developing a project strategy, a business should not only focus on how to obtain higher returns but also consider the potential risks involved in the project and have a plan in place to manage them when needed. 

Risks can result from several areas, including:

  •   high initial investments
  •   liquidity of funds
  •   complicated tax compliance
  •   human error

Risk management for small business owners is especially important for their survival. A high-risk level may prevent them from providing adequate returns to investors and stakeholders. Without a sufficient risk management strategy in place, a return strategy will be like a faulty ship. It may look fancy on the outside, but if it has a weak bottom plate, it could easily be wrecked by a sudden small hit.

Developing a risk management strategy

Investing time and effort into developing a company risk management plan is the same as buying insurance on an asset. Returns that are not ‘insured’ by a proper risk management strategy, are more likely to suffer greater damage from unforeseen risks. While reducing the level of business risk to zero is not possible, by identifying risks and addressing them, companies can mitigate the overall dangers involved.

To create an effective strategy, enlisting the services of a risk management advisory can be a great asset to a company’s business planning.

Develop your risk management plan with Premium Accounting Solution

With the help of a risk management consultant, your company’s risks can be reduced to an accepted and manageable level. If you’re looking for excellent risk management consulting services, we’ve got you covered! Our chartered accountant team has the industry knowledge and skills to help you effectively identify and manage your business risks.

How Do We Do This?

We identify and assess your business risk by pinpointing key enterprise-wide and operational risks, leveraging in-depth analyses to understand potential impacts on your business operations. Whether it’s risk avoidance, acceptance, transference, or a tailored mix, our team can create a risk mitigation plan, tailored to your business. This includes developing management tools for documenting, registering, monitoring, and reporting identified risks, ensuring a robust governance structure for oversight.

We also assist in developing a fit-for-purpose risk framework, supported by actionable high-level plans for residual risk mitigation, ensuring your business remains agile and effective in the face of potential threats. Further, continuous risk monitoring and the provision of strategic advice ensure that your business can adapt and respond quickly to risk events as they occur.

In a nutshell, our services include regular updates on governance, compliance, risk strategy adjustments and risk avoidance strategies to reduce any negative impacts on your business. Book an appointment with us and show us your strategy plans (no matter how rough!). We can help you develop them into a comprehensive risk management plan that lets you take control of your business risks.

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