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What is meant by “Risk Minimisation”?

Risk Minimisation is about structuring your personal affairs and your business affairs to guard against a rainy day.

Risk Minimisation is about protecting the family home.

Risk Minimisation is about providing you with real peace of mind.

Risk Minimisation is is about the separation of high risk ventures from your core business activities.

Risk Minimisation is about guarding yourself from financial pain, by limiting or removing the downside risks.

Why restructure your affairs?

You’re probably thinking “Why should I restructure when my business is going along very well?”  Consider the points below.

• All business involves some form of risk.
• The only certainty in life is change.
• Most businesses are successful, but not all. A surprising number of ventures fail. When they fail most loose everything.
• Your business may be trading well, but “What if one of your major debtors or customers is unable to pay their account or is placed into liquidation? How will this affect the solvency and cashflow of your business?
• Unless you are properly structured you could loose everything.
• Structuring your business defensively is not being pessimistic in any way, but in fact sound business practice.
• The great business moguls never do anything without ensuring their personal risks are minimised if not completely removed.

It is clear that even very small businesses are exposed to considerable risks. Unfortunately the day to day pressures of physically running the business leave little time for considering the risk scenario and organising one’s affairs to eliminate or minimise exposures. Too often these considerations are left until a real crisis threatens and this is the precise time when your options may be very constrained.

Why use Clout & Associates?

You should consult an expert in order to obtain the best advice available and to make sure that all information is kept strictly confidential.

Clout & Associates are leading specialists in the areas of Business Recovery Insolvency situations. Given our extensive exposure to these types of problems, we naturally have a comprehensive understanding of the risks and the appropriate structures needed to eliminate or minimise all major risk areas.

The Services Available

As a nominal guide, and subject to your specific circumstances, you should adopt the types of arrangements mentioned briefly below.

• Incorporate the business entity (utilise a company structure)
• Ensure the controller of the business owns no assets
• Put key operating assets in a separate company or trust
• Where the superannuation laws allow utilise self managed superannuation funds
• Avoid trusts for the family home
• Contract borrowings yourself where you can obtain security from the Company.

Important:
Not all of the above ideas work in all situations. You should consult the specialists for a tailored solution.

If you already have notice of potential financial problems things get much harder but not necessarily  impossible. However speed is now obligatory so act quickly.