Risk: The Threat You Can’t Afford to Ignore, But Can Get Paid to Solve
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Every business faces risk. Whether it’s a missed payment, a cyberattack, or a simple accounting error, when things go wrong, it costs time, money, and trust. But here’s the good news: accountants are in the perfect position to help. By spotting and managing risks early, you can help clients protect their business, and turn this into a valuable advisory service. It’s not about complicated frameworks or red tape. It’s about using what you already know to make your clients safer and your practice more profitable.
What is Risk, Really?
Risk is anything that could stop a business from running smoothly or staying compliant. That includes things like missed SARS deadlines, bad data, fraud, or system failures. Many of these risks show up in everyday tasks, like invoicing, payroll, or supplier payments. Most businesses don’t even realise how exposed they are until it’s too late.
What Does a Risk Management Process Look Like?
It’s simpler than you think. The goal is to spot problems before they happen, and put in safeguards to stop them from becoming expensive mistakes. Here’s how:
Identify risks
At each step, ask:
What could go wrong? Is there a risk of fraud, error, delay, or non-compliance?
This approach works for any process, whether it’s expenses, sales, payroll, or reporting.
✅ On an entity level you can use risk categories to ensure you cover your bases.
✅ An employee paying a fake invoice could be an operational or financial risk
✅ Missing a SARS deadline could be a compliance risk
✅ Using outdated systems could expose the business to cybersecurity and strategic risks
✅ A public client complaint could damage the company’s reputation.
Start by breaking down a process into its key steps, known as the transaction life cycle. For example, the expense process might include placing an order, choosing a supplier, receiving goods, making the payment, and recording the transaction. Enroll to our webinar below and get your sample templates!
Assess the impact
Once risks are listed, assess how likely each one is to happen, and how bad the outcome would be if it did. This helps prioritise which ones to deal with first.
A low-risk issue you may not have to handle right away. A high-risk, however, like data loss or regulatory penalties, needs immediate action. Remember, assessing a risk will always remain subjective to judgement, so make sure that you understand the risk and the processes well.
Put in safeguards (internal controls)
Decide how to respond. Can the risk be avoided entirely? If not, can its chance or impact be reduced? Can it be transferred (for example, through insurance)? Or is it small enough to simply accept?
Practical safeguards could include:
Checklists or standardised processes
Role-based access controls
Staff training
Secure document systems
Engagement letters
Internal review procedures
Approval workflows.
Monitor regularly
Risks evolve. That’s why regular reviews are essential. Monitor whether safeguards are working, test internal controls, and keep an eye out for new risks, like changing laws, new staff, or system updates. Risk registers should be living documents, updated as needed.
Document everything
A risk register should include the key risks, what could trigger them, how severe they are, what safeguards are in place, and who’s responsible. It doesn’t need to be perfect, it just needs to be practical and clear. This shows that risks are being managed and decisions are informed.
ISQM 1: Lets Put It Together
Under ISQM 1, accountants must identify and respond to risks that could impact the quality of their work. That includes risks at the firm level (like outdated systems or undertrained staff) and at the engagement level (like relying on poor-quality client data).
This same framework can be used to help clients manage their risks. It’s a natural extension of what you already do, just applied to their processes instead of yours.
Turn Risk Into a Revenue Stream
Risk management doesn’t have to be theoretical. It can be packaged as a paid service offering that helps clients protect their business, and positions you as more than just a number-cruncher. You could offer:
Custom risk registers
Transaction-level risk reviews
Internal control assessments
Compliance reviews
Business continuity planning.
You already understand the risks. Now you can help clients see them, and avoid them.
Risk Is a Business Problem—You’re the Solution
Managing risk isn’t about scaring clients. It’s about showing them how to stay compliant, resilient, and future-ready. When you offer risk management as a service, you’re not just preventing problems, you’re adding real value. And that’s something clients are willing to pay for.
Want to get started?
✅ Download our risk register templates
✅ Start with one client or one process
✅ Show how you can help them avoid trouble, and run smarter
Let’s make risk management a tool for business growth, not just a compliance requirement.
Enroll to CIBA’s Mastering Risk, Build a Register That Actually Protects You and get ready to provide a new service to your clients.
You will gain the following competencies:
✅ How to identify real risks in your practice or client’s business—not just tick-box risks
✅ The difference between a useless risk register and one that keeps you out of trouble
✅ How to confidently update and manage risks with limited time and resources
✅ How to use your risk register to defend against liability and compliance failures
✅ How to explain risk in a way that clients or execs will understand (and charge for it)
