It’s not how much money you make that matters, it’s how much you keep. There is an old Chinese proverb that says ‘Making money is like digging sand with a pin. Losing money is like pouring water on the sand’.
Risk management covers the area of financial loss including losses caused by loss of plant and equipment, industry down turns, fraud, operational error, WHS issues and litigation.
It is very important that risks are identified and managed, mitigated or eliminated. We help you identify all significant risks that effect you and what the likelihood and consequences of them occurring are. We then find ways of either eliminating them or managing them.
Different people have a different tolerance for risk. This can be due to personality, stage in life or simply more resource to handle risk, and these factors will need to be considered as well.
There are many ways in which financial risk can be managed, including insurance, by ensuring appropriate business structures are used, due diligence, checks and balances (especially in the case of potential fraud), diversification, minimization and elimination strategies.