At Abacus, we know that risk Management is a key factor in the success of any business. Without a comprehensive risk management strategy in place, a business is unlikely to survive a major incident. Accounting firms in particular should have a comprehensive risk management strategy in place as it can protect the assets, finances and operations of your the firm. Furthermore, for Accountants in Australia, certain risk management tactics are necessary in order to satisfy legal compliance, corporate governance and due diligence.
Successful risk management will protect the reputation, credibility and financial standing of your accounting firm.
What Does Risk Management for Accountants Involve?
The concept of risk is not new to the Accounting industry, however the issue has become more prominent in the last couple of decades as the number of legal claims has risen year on year. While you cannot completely eliminate risk, you can identify the most common risks facing your Accounting business and take steps to minimise them.
Risk management is not something that only concerns the top managers in the firm. It is also not something that can be done once and forgotten about. The key to successful risk management is to create a risk management culture across the firm, where all employees and management are aware of the importance of managing risk.
Risk Management Strategies For Accountants
Unpredictable and unplanned events can have a serious negative impact on your business. These crisis situations can result in substantial losses of revenues and fees to your business, however the long term effect on brand and reputation can be much more devastating. In the event of a disaster your employees and management team may be left in a state of shock and confusion, which can be difficult to bounce back from.
Taking the following steps to risk management now can help your business’ ability to recover when you need it most.
- Incorporate Risk Management Tactics: Risk Management tactics should be incorporated into the daily routine of your employees, so that they are trained to look out for risks. In addition, when making strategic and operational decisions, employees should be fully trained to consider risks at every level.
- Have a Quality Control Process: Having a quality control processes in place within your accounting firm is crucial. It’s important to continuously emphasise your employees’ role in quality control, and the virtal role that they play in managing risk in the day-to-day operation of the firm.
- Business Continuity Planning: The key elements of prevention, preparedness, response and recovery are vital to Business Continuity Planning, which is a key element of your Business risk management strategy.
- Have Insurance In Place: Insurance is important to cover your business for risks that cannot be completely eliminated. The most relevant insurance for your firm will depend on your unique circumstances, however certain types of insurance are compulsory for Accountants in Australia.
In the event that an incident does occur, dealing with it in a quick and professional manner can test the rigour and planning of your entire business. For most businesses, a time like this is when it’s most important to have access to highly skilled specialists to ensure your recovery is as quick and undisruptive as possible. That’s where Abacus comes in.
At Abacus we work hard to add value to the businesses of every client we work with. We care about protecting the assets, finances and operations of your business and ensuring that your practices comply with legal and corporate governance. Speak to us today for more information.
Why Choose Abacus for Your Accountants Professional Indemnity Insurance?
At Abacus, we do more for our clients. In addition to our Accountants Professional Indemnity Insurance, we add value to our members’ businesses by helping them meet and exceed the increasing expectations of their own clients. We promote the highest standards of professional practice so that our members become their clients’ most trusted financial advisers.
With a background in the accounting industry, the advisors at abacus have extensive expertise in the sector. We keep up to date with the unique challenges faced by businesses operating in the sector, combining this knowledge with our in-depth understanding of insurance and risk management, to ensure our members’ businesses are adequately protected.
Get in touch with us today to find out more about our Accountants Professional Indemnity Insurance Offering.