The accountant is no longer a simple number cruncher; instead, today, the profession is one integral part of any business for the successful handling of the following challenges:
- Financial Management
- Regulatory Compliance
- Operational Challenges
The role may range from basic bookkeeping to high-value strategic advisory, critical for any business seeking effective management of risk.
Understanding Risk in Business
Business risk includes everything from:
- Financial Risk
- Market Volatility
- Regulatory Compliance
- Cybersecurity
- Operational Disruption
There are also specific issues for Australian businesses, including the changes in the global economic landscape, changes in local regulations, and the impact of natural catastrophes. Hence, an effective risk management strategy will be needed.
Financial Risk Management
One of the significant areas where accountants make a big impact is in helping reduce financial risks. It brings insight into cash flow management, investment analysis, and cost control. These are some of the fields which are very vital in gaining an excellent financial footing.
They give projections of possible monetary challenges and budget adjustments, hence helping the business to be ready for any financial shock and eventualities that may happen in the market.
Compliance with Regulations
The regulatory environment in Australia is arduous; many laws and standards govern business operations. One way accountants help is by ensuring that taxation laws, the requirement in reporting finances, and other related laws are followed.
This includes conducting audits and preparing the right financial statement and equally being aware of any legislative changes. This saves your business from any legal penalties and increases your reliability.
Strategy and Risk Advisory
Today, accountants are more involved in strategic decision-making; thus, they can help business executives identify potential risks and develop mitigations.
For instance, during the COVID-19 pandemic, many Australian businesses relied on accountants to navigate government relief programs and make adjusted business models. Due to the capacity to analyse data and predict trends, accountants have become indispensable in strategic planning and risk management.
Cybersecurity and Data Protection
In this digital age, cybersecurity has become one of the key priorities of many organisations. Accountants hold strategic positions in the protection of financial information and ensuring that the firm is conforming to various legislations which relate to data protection, including the Australian Privacy Act.
They cooperate with the IT department in setting up secure accounting systems, performing risk analysis, and setting up protocols to prevent data breach incidents.
Operational Risk Management
Other areas, including disruption of supply chains, employee misconduct, and process failures, are where accountants can offer their expertise. The accountants, through their internal audits and evaluation of processes help to further pinpoint the vulnerabilities of the business operation.
These recommend ways of improvement and putting in place controls in order to bring efficiency and diminish the chances of any operational failure.
Need professional help with business risk management? Browse your options now with AdvisoryOne to find how our expert accountants can help your business in a challenging environment. Get in touch today and give us a call at 02 6324 5888.
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