Alia
Risk management guide for small business
www.smallbiz.nsw.gov.au
May 2005
DISCLAIMER
This package contains information, data, documents, pages and images prepared by Global Risk Alliance on the instruction of the New South Wales Department of State and Regional Development for and on behalf of the Crown in right of the State of New South Wales (‘the Data’). Although the Data contained in this package has been formulated with all due care, the State of New South Wales does not warrant or represent that the Data is free from errors or omissions or that it is exhaustive. The Data is made available on the understanding that the State of New South Wales and its employees and agents shall have no liability (including but not limited to liability by reason of negligence) to the users for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on the Data and whether caused by reason of any error, omission or misrepresentation in the Data or otherwise. Furthermore, although the Data is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact on the accuracy of the Data. The Data may change without notice and the State of New South Wales is not in any way liable for the accuracy of any information printed and stored by the user.
© 2005 Global Risk Alliance Pty Ltd jointly with NSW Department of State and Regional Development ISBN 0 7313 32490
2
NSW Department of State and Regional Development
Contents
Foreword Purpose Why is risk management necessary? What is a small business? How to use this guide Acknowledgements 1 Risk management principles and concepts 1.1 Demonstrating good governance practice for small business 1.2 Defining risk and risk management 1.3 Types of risk 1.4 Drivers of risk management – why manage risk? 1.5 Limitations of risk management 2 Categories of risk in small business 2.1 What is a category of risk? 2.2 The use of
www.smallbiz.nsw.gov.au
May 2005
DISCLAIMER
This package contains information, data, documents, pages and images prepared by Global Risk Alliance on the instruction of the New South Wales Department of State and Regional Development for and on behalf of the Crown in right of the State of New South Wales (‘the Data’). Although the Data contained in this package has been formulated with all due care, the State of New South Wales does not warrant or represent that the Data is free from errors or omissions or that it is exhaustive. The Data is made available on the understanding that the State of New South Wales and its employees and agents shall have no liability (including but not limited to liability by reason of negligence) to the users for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on the Data and whether caused by reason of any error, omission or misrepresentation in the Data or otherwise. Furthermore, although the Data is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact on the accuracy of the Data. The Data may change without notice and the State of New South Wales is not in any way liable for the accuracy of any information printed and stored by the user.
© 2005 Global Risk Alliance Pty Ltd jointly with NSW Department of State and Regional Development ISBN 0 7313 32490
2
NSW Department of State and Regional Development
Contents
Foreword Purpose Why is risk management necessary? What is a small business? How to use this guide Acknowledgements 1 Risk management principles and concepts 1.1 Demonstrating good governance practice for small business 1.2 Defining risk and risk management 1.3 Types of risk 1.4 Drivers of risk management – why manage risk? 1.5 Limitations of risk management 2 Categories of risk in small business 2.1 What is a category of risk? 2.2 The use of