Managing risk
It is something for us all to consider
You have undoubtedly heard the expression “don’t put all your eggs in one basket”. I can only assume that the original expression related to what we would call today a risk management plan associated with the fragile nature of eggs and the tendency of humans to be clumsy!
Risk management is something that is relevant to us all. It is integral to insurance where we pay a premium to an insurer to take away the financial risk associated with damage to property or personal illness, injury or death. It is relevant to our investments where we spread our investments across alternative investments and classes of investments. It is also relevant to business where we need to manage risks associated with undue reliance on customers, suppliers and staff, business interruption and disruption risks to name a few.
Manage what you can’t eliminate
The starting point of dealing with risk is to decide how much risk you are willing to bear yourself and how much you will mitigate through action. We can never eliminate risk but we can manage it.
At Saward Dawson we are experienced at helping clients deal with these issues.
- We work with businesses to address the risks they confront and then assist in developing strategies to manage these risks. This is often part of a strategic business planning process.
- We work with individuals and offer a free insurance review service so that you can have peace of mind knowing that you have the right level and the right type of insurance for your personal and family circumstances.
- We assess the investment risk profile of our clients when delivering advice regarding investment strategies. Emerging from this we can consider how the portfolio asset allocation can be developed to spread risk across classes of investment such as cash and fixed interest, equities and property as well as considering exposure to various geographies.
- In our taxation and superannuation advice areas, our role is also to assist in managing taxation risk. Having a skilled professional overseeing your tax affairs means you mitigate the risk of getting things wrong and the associated risk of having a tax audit.
Although we can never eliminate risk, our role is to assist clients to understand the risks that they face in business or personally that can be mitigated or managed and to assist with the strategies to appropriately address risk. By considering risk, you can then deal with it and have the peace of mind that comes from knowing how you have dealt with this and only being concerned about the risks you are willing to carry.
Why not talk to us about how we can assist you in reviewing and addressing the risks you are concerned about.
