The risk management plan is a document which outlines the risks faced by the business and provides guidance on risk mitigation strategies.

The risk management plan should contain:

• identified risks
• rating of the impact of the risk for the business (ie low, medium, high)
• rating of the likelihood of the risk occurring (ie low, medium, high)
• actions taken or to be taken to mitigate the risks
• timeframes for review.

Risk management in a small business should not be a stand-alone plan. There are relationships between risk management and many of the management processes and techniques that may be employed to ensure the successful operation of a business.

Good practice is to ensure that all of the following business areas are considered when developing the risk management plan:

• business planning
• occupational health and safety
• human resources management
• compliance
• financial management
• client management
• contract management
• quality assurance.

The risk management plan should be reviewed regularly and updated as needed to ensure all risks in the business are being covered.