Australia is one of the most legislated business operating environments in the world and the risks associated for the person charged with the responsibility of running a business are increasing every day.
Anyone can be a good business manager, but every business manager needs to strive to become a great leader and Company Director.
We need to do more in Australia to become a country of smart business managers.
Many business managers become Company Directors with little understanding of the risks involved or their regulatory responsibilities. No one really explains the risks and responsibilities to them.
Every day, people across Australia are setting up their own enterprises, starting their own businesses or being placed at the helm of the operation hoping to be successful and do well. They get an ABN, tick a few boxes and launch, unknowingly, headfirst into a high-risk environment and compliance minefield.
It is only when things go wrong in the business or when an incident occurs that business managers realise they could be in trouble – and then they panic. At this stage, it is usually too late to mitigate the risk. This is why it is essential to take a pro-active approach to corporate governance regardless of the size or type of the business.
There are significant risks for business managers and Company Directors in the SME market space, and not just risks to business but also considerable personal risks.
Company Directors of large organisations can undertake expensive courses through the Australian Institute of Company Directors, but there is nothing that focuses on SME company managers that are running the majority of our country’s businesses.
I established Ethical Leadership & Compliance Australia to provide SME managers and Company Directors with affordable, accessible, relevant and tailored Company Directorship and management, leadership training. The training consists of three areas of focus which provide the most consistent challenges for SME managers. The areas include: Growth Strategies, Stakeholder Engagement; and Compliance.
SME managers and Company Directors need to understand issues such as exposure, taxation and financial trading compliance, employment and management of staff, product warranties, service and returns requirements, just to mention a few.
Being an SME manager or Company Director should be a positive and rewarding experience, but this can only happen if managers and Directors fully understand their responsibilities and the risks involved.
Brett Flower, Corporate Governance Specialist and Founder, Ethical Leadership & Compliance Australia
