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The importance of Systems to your business - and your Sanity!

A lot of small business owners struggle with doing everything in their business - paying bills, day to day management, getting products and services ready, managing staff, selling etc

Delegation of responsibilities is a major challenge of any business owner. The introduction of systems into your business will allow you the freedom to let your staff take over some of the responsibilities in running the business, without the need for you to be looking over their shoulder.

In order to set up a system you need to get the knowledge you have out of your head and into a format that your staff can understand and follow. You need to identify what are the critical actions in the business, which is responsible for them and how they should be done. Staff will need to be trained and monitored in these actions initially, but with an investment of time in the beginning you should see a large pay-off in the long run.

Systems in your business are as important as the products and services that you sell. By having functional systems in place and ensuring they are improved on an ongoing basis, you will provide your staff with a means by which they can replicate the critical actions of the business. This means you can take a break and know that the business will perform in the same way as if you were there.

No systems mean you will be a slave to your business. Systems will restore some sanity.

Risk Management in Your Business

The proposed rules of the Australian Securities Exchange Corporate Governance Council stipulate that companies must report on material risks as well as risks in the areas of corporate responsibility and sustainability.

CPA Australia supports the application of these rules to all companies, regardless of size or industry. If adopted, risk management will become a mandatory organisational process, subjected to public and stakeholder scrutiny.

Risk management is a structured approach to maximising opportunities while minimising threats or adverse outcomes. At first glance, it may be considered another business fad. Many believe it's time-consuming and expensive, it applies only to certain industries, and it will eventually join other management models and practices that have fallen by the wayside.

Does risk management have a place in a 21st-century organisation? The answer lies in the importance placed on good governance, social responsibility, sustainability, and maximising financial performance.

As a consequence, there is an increasing trend for risk management to be applied across many sectors and businesses that have not traditionally practised such techniques.

For the full article visit www.cpaaustralia.com.au