Australia’s Bushfires: Case Study of Risk Management “Blind Spot”

Andy Watkins L6o2gansswu Unspl

As Australia returns to work in early January 2020, we are all aware of the devastation to our communities and environment due to the recent Bushfires across the country. The current bushfire emergency in Australia is a national disaster on a scale above and beyond any level experienced in recent history (and it continues) …. While there is debate about the cause, emergency preparedness and the National response there can be no debate that this event is a national failure of risk management and has highlighted the impact of “blind spots” in life and business.

While the Government and other agencies were aware of the issue, they mistakenly assumed that the risk was not significant enough to take preventative actions. They were blind to the potential impact and they got it wrong.

In life this may be the same as ignoring income protection or life insurance. In business the same as ignoring a competitor or cutting corners to save costs. This is not to say that you should take no risk; But you should be aware of the risks you are taking and ensure you understand the impact if you get it wrong.

Do you have blind spots?

While this issue is fresh in our minds, honestly assess your affairs and ask yourself the following:

Business

  • What if the next national disaster effects my business; would it survive?
  • Is our business thriving or just surviving while things are good?
  • Would the business survive if I was unable to run it?
  • What else have we ignored?

Personal

  • What would happen if I was unable to work in the future?
  • Does my insurance sufficiently cover the cost of living or the cost of rebuilding?
  • What if my partner or kids get sick; am I able to care for them and still provide?
  • What else have I ignored?

This is scary stuff and often ignored because of it. But it is better to think about it now, assess the level risk you are prepared to accept, and plan accordingly then be stuck with the impact of an unexpected disaster. Unfortunately, bad things happen.

We can help

At Solve Accountants we are here to help you build a better future. We are experienced in assisting business owners plan, build and protect their futures. We are able to help you assess risks and embrace uncertainty with confidence. We can help you find solutions to the big issues impacting your business today.

At Solve Accountants we are Business Accountants and here to help you achieve your goals. If you have any questions or need help please contact us now.

#blindspots #riskmanagement #advisory #advice

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