Risk management and effective risk management solutions are something that every Australian business owner needs to be mindful of. All businesses face various risks and all businesses and industries are governed by rules and regulations they are expected to comply with.
This article is going to take a look at risk management in different industries, what those who operate in these sectors need to be aware of and more.
#1 – The Real Estate Sector
The property sector involves property managers, real estate agencies and property investors. Everyone involved in generating an income from Australia’s real estate market needs to be aware of any risks associated with the industry and what their legal obligations are.
For example, when renting out a property, the owner needs to ensure it’s in compliance with safety checklists. Workplace health and safety incidents are something that real estate agents need to be mindful of.
Numerous risks can emerge in this sector, including tenant risks, administrative risks, lawsuits, accidents and injuries, market risks, credit and debt risks. Even cyber risks can be a concern.
#2 – Entertainment and Gaming
One thing that’s quite unique to the entertainment and gaming sector is the fact that licences are required for numerous activities and there are generally more rules and regulations that need to be complied with.
The gaming sector involves large sums of money changing hands, so the potential for financial risk can be huge in this particular industry.
Health and safety are a concern for every business but can often have a greater impact in the entertainment industry, particularly if any form of physical activity is involved.
Business owners and operators in these sectors need to exercise due diligence when it comes to managing risks associated with or unique to this sector. Hiring a risk management professional might be a requirement to remain on top of things when it comes to managing risk and compliance.
#3 – The Financial Services Industry
Financial services is a rather broad industry that includes banking, accounting, investing and financial consultancy. Many potential risks in the financial services industry are going to be associated with money. There are also numerous compliance laws pertaining to anyone operating within this sector that need to be adhered to.
When it comes to investing, whether you are the investor or investing on behalf of others, there are market fluctuations and volatility to consider, currency exchange rates and so on. Each of these can be a potential risk that can affect ROI.
The banking sector can also face a multitude of possible problems that need to be either solved or counteracted, such as dishonoured debts, the rising and falling of the RBA’s official interest rates, a global financial crisis and more.
Those who act as financial consultants need to be able to protect themselves against potential lawsuits if a client decides they have been given poor or erroneous financial advice.
Accidental or intentional breaches of compliance anywhere within the financial sector can lead to large fines, investigations or the closure of business.
Due diligence when it comes to risk management in this sector is paramount.
#4 – Education
This is another sector that can be faced with some unique risks, especially since much of the education sector involves children. The health and safety of minors and complying with rules and regulations pertaining to this are very strict in this industry, as they should be.
Industry-specific risk management strategies and planning need to be developed and put into practice in the education sector and industry professionals should be employed to oversee risk management and compliance practices to ensure protocols are being followed at all times.
One prime example of a potential risk or hazard in a school environment is that of fire, so things like fire safety need to be addressed, along with effective evacuation plans.
Everyone involved in the education sector needs to take on the responsibility of risk management, with the task being overseen by a risk management professional.
As all business sectors face various risks, effective risk management needs to come into play. This can also be aided by purchasing and using flexible software that will help you stay on top of risk, as well as making sure you remain compliant with the law.