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Prepare a risk management plan

Easily identify risks to your business, reducing the impact.

On this page

  • Think about how you can improve your current business processes
  • Put together a risk management plan


Don't forget insurance

Make sure you have adequate insurance. If you have business interruption cover you receive average earnings for the insured period until you start operating again. Visit our Insurance section for help on how to choose the best cover for you.

To create a plan that's tailored for your business, start with these steps:

1. Identify risks

What are your risks and how likely are they to occur? Some will cause major disruption while others will be a minor irritation. You must make an educated assessment of both the likelihood and potential severity of each risk to prioritise your planning efforts.

2. Minimise or eliminate risks

Once risks have been identified you need to either eliminate or minimise those risks. You should provide specific strategies for minimising risk for each of the six subgroups.

3. Identify who has to do what should a disaster occur

One of the simplest and most powerful tools for a speedy recovery from a disaster is a clear picture of, and clear directions about, who has to do what should your disaster plan have to be enacted.

Sample of response checklist

4. Determine and plan your recovery contingencies

Recovery contingencies should be determined by the type, style and size of your business and by the extent of the damage. 

Use our Emergency Contingency Planner to make sure you cover all bases.

5. Communicate the plan to all the people it refers to

This stage of planning is all about ensuring that all people within your business sphere (staff, suppliers, contractors, service providers) are made aware of the strategies you have put in place to either mitigate or recover from a disaster situation. Make decisions about whether the physical communication will be done by phone, email, text or other means. Once these decisions are made, procedural statements can be created and relevant people can be informed. The next part is to train staff and ensure everyone practices what has been done so if a disaster occurs the process can take over and guide the staff.

During day to day operations, any number of risks can pop up in a business so it is important to know how to identify any potential risks before they escalate. This will help you develop realistic and effective strategies for dealing with risks if they occur.

6. Prepare a risk management plan 

A risk management plan can help minimise the impact of cash flow issues, damage to brand and other risks. It will also help create a culture of sensible risk awareness and management in your business. Our Crisis planning for business template below includes a risk management plan.

Crisis planning template (DOCX 54.79 KB)DOCX icon

Attend a crisis planning for business workshop

Small Business Victoria runs Crisis Planning for Business workshops throughout Victoria to help you prepare comprehensively for risks that could occur in your business.

Check upcoming workshops