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“Risk management is all about deciding what the risks to the business are and whether you can stomach that level of risk, or whether you need to take steps to mitigate or remove it,” Greenslade explained.
“We can do that through training – the more we train our advisers, the lower our risk. Or we can spend a heap of money on compliance, and that way we’re trying to put in the various ambulances to capture the things that may be going wrong.”
“We can put very rigid structures into place, and we can limit our range or products and the type of advice that we provide,” he continued. “Anything and everything is possible. But you need to ensure that you can run your business at whatever degree of risk you are prepared to take, and that if you’re going to take more on, then ensure you have more money available so that you can resolve whatever issues happen to be.”
Greenslade says that focusing on complaints is a “sure-fire” way to minimise risks quickly, as these can easily become difficult and costly if they are not resolved as fast as…
