Business Operations SOP
Operational Risk Register SOP #
This SOP defines how PrecisionTech identifies, records, rates, reviews, escalates, and treats operational risks across client service, bookkeeping, IT support, cybersecurity, backup continuity, vendors, documentation, staffing, and Business Care delivery.
Purpose #
To maintain a practical register of operational risks so PrecisionTech can track what may affect service quality, client delivery, financial workflow, cybersecurity posture, business continuity, and internal accountability.
Scope #
Applies to risks identified through Business Operations reviews, KPI tracking, Business Care reviews, client issues, bookkeeping deadlines, IT support activity, cybersecurity events, vendor issues, documentation gaps, and continuity checks.
Core Risk Principle #
A risk should not remain informal once it could affect a client, deadline, system, financial record, security control, service commitment, or business decision. Risks must be visible, assigned, reviewed, and either treated, accepted, transferred, or closed.
Risk Categories #
Client Service Risk #
Escalations, recurring issues, communication gaps, missed expectations, onboarding/offboarding problems, or client dissatisfaction.
Bookkeeping Risk #
Missing records, BAS deadline risk, reconciliation issues, payroll review concerns, AP/AR exceptions, or accountant follow-up delays.
IT Support Risk #
Microsoft 365 issues, access problems, endpoint instability, unresolved tickets, backup gaps, service outages, or tool failures.
Cybersecurity Risk #
MFA gaps, phishing exposure, account compromise concerns, access control exceptions, weak passwords, incidents, or remediation delays.
Operational Risk #
Capacity pressure, unclear ownership, process gaps, documentation gaps, training gaps, quality issues, or repeated missed follow-ups.
Vendor & Continuity Risk #
Vendor failure, subscription renewal risk, licensing issue, backup failure, restore uncertainty, hosting problem, or business continuity concern.
Operational Risk Register Procedure #
- Identify the risk: Confirm the issue, uncertainty, weakness, or exposure that may affect PrecisionTech, a client, a deadline, a system, or a service commitment.
- Record the risk: Add the risk to the approved Operational Risk Register with a clear title, category, owner, source, description, and date identified.
- Describe the business impact: Explain what could happen if the risk is not managed, including client, financial, cybersecurity, operational, or continuity impact.
- Rate likelihood: Assess how likely the risk is to occur using Low, Medium, High, or Critical.
- Rate impact: Assess how serious the outcome would be using Low, Medium, High, or Critical.
- Assign a risk level: Combine likelihood and impact to determine overall risk level: Low, Medium, High, or Critical.
- Select a treatment approach: Choose whether to reduce, avoid, transfer, accept, monitor, or close the risk.
- Create action items: Create linked actions for any required control, remediation, follow-up, client communication, vendor escalation, or process improvement.
- Assign ownership: Every active risk must have one responsible owner who tracks updates and ensures follow-up.
- Set a review date: Review Critical and High risks more frequently, and review all open risks during internal business reviews.
- Escalate where required: Escalate risks that affect client data, cybersecurity, bookkeeping deadlines, business continuity, service delivery, or owner-level decisions.
- Update status: Keep the risk status current until it is reduced, accepted, transferred, closed, or formally deferred.
- Document closure: Close the risk only when the outcome is verified, the treatment is complete, and closure notes are recorded.
Risk Review Rhythm #
- As Needed: Add risks immediately when they are identified through incidents, escalations, client issues, missed deadlines, or major operational concerns.
- Weekly: Review Critical and High risks, blocked remediation actions, client-impacting issues, and deadline-sensitive risks.
- Monthly: Review all open operational risks during the Internal Business Review.
- Quarterly: Review risk trends, recurring risk themes, accepted risks, treatment effectiveness, and strategic risk exposure.
- After Major Events: Update the register after incidents, service failures, vendor failures, client escalations, business process changes, or major tool changes.
Required Register Fields #
- Risk ID
- Risk title
- Risk category
- Source or trigger
- Date identified
- Risk owner
- Description
- Business impact
- Likelihood rating
- Impact rating
- Overall risk level
- Treatment approach
- Status
- Next review date
- Closure notes
Likelihood Guide #
- Low: Unlikely to occur based on current information.
- Medium: Possible and should be monitored.
- High: Likely or already showing warning signs.
- Critical: Active issue, recurring failure, or immediate exposure.
Impact Guide #
- Low: Minor inconvenience or low operational effect.
- Medium: Noticeable disruption, rework, delay, or service quality concern.
- High: Client impact, financial workflow impact, security exposure, deadline risk, or business continuity concern.
- Critical: Severe client, data, financial, legal, reputational, or operational impact.
Treatment Options #
- Reduce: Add controls or actions to lower likelihood or impact.
- Avoid: Stop or change the activity creating the risk.
- Transfer: Shift part of the risk through vendor, insurer, accountant, legal adviser, or client responsibility.
- Accept: Approve the risk with documented rationale.
- Monitor: Keep under review where immediate action is not required.
- Close: Risk no longer applies or treatment is verified complete.
Operational Risk Register Template #
Risk ID: [AUTO / Manual Reference]
Risk Title: [Short title]
Risk Category: [Client Service / Bookkeeping / IT Support / Cybersecurity / Backup / Documentation / Training / Vendor / Continuity / Business Operations / Other]
Source / Trigger: [KPI Review / Internal Business Review / Client Issue / Incident / Service Review / Vendor Issue / Audit / Other]
Date Identified: [Date]
Risk Owner: [Name]
Description: [What could happen and why]
Business Impact: [Client, financial, operational, cybersecurity, continuity, or reputational impact]
Likelihood: [Low / Medium / High / Critical]
Impact: [Low / Medium / High / Critical]
Overall Risk Level: [Low / Medium / High / Critical]
Treatment Approach: [Reduce / Avoid / Transfer / Accept / Monitor / Close]
Linked Action Items: [Action ID(s) / N/A]
Status: [Open / In Treatment / Monitoring / Accepted / Transferred / Closed]
Escalation Required: [Yes / No]
Next Review Date: [Date]
Closure Date: [Date / N/A]
Closure Notes: [Outcome, evidence, or ongoing monitoring requirement]
Risk Acceptance Rules #
- Risk acceptance must be intentional, documented, and approved by the business owner or authorised decision-maker.
- Critical risks should not be accepted without a clear rationale, compensating controls, and review date.
- Accepted risks must still have an owner and review date.
- Client-specific accepted risks should be documented in the relevant client record where appropriate.
- Accepted cybersecurity, bookkeeping, or continuity risks should be reviewed at least quarterly.
Related SOPs and Records #
- Business Operations Master SOP
- Internal Business Review SOP
- KPI & Metrics Tracking SOP
- Action Item & Follow-Up Management SOP
- Client Health Review SOP
- Vendor & Subscription Review SOP
- Incident Response SOP
- Backup Verification SOP
- Business Continuity SOP
- Documentation Standards SOP
Escalation Triggers #
- Risk is rated Critical.
- Risk affects client financial records, sensitive data, system access, or business continuity.
- Risk may cause a missed BAS, payroll, month-end, or reporting deadline.
- Security incident, phishing exposure, account compromise, or MFA gap remains unresolved.
- Backup, restore, vendor, hosting, or Microsoft 365 issue affects service delivery.
- Risk treatment is overdue, blocked, or repeatedly deferred.
- Risk requires owner-level decision, client communication, risk acceptance, or resource approval.
Completion Checklist #
- Risk clearly identified
- Risk category selected
- Source or trigger recorded
- Business impact documented
- Risk owner assigned
- Likelihood rated
- Impact rated
- Overall risk level assigned
- Treatment approach selected
- Linked action items created where required
- Review date set
- Escalation raised where required
- Status updated
- Closure notes added before closing
Document Control #
Owner: PrecisionTech
Applies To: Business Operations, Client Service, Business Care Plans, Bookkeeping, IT Support, Cybersecurity, Vendor Management, Documentation, Training, Risk Management, Business Continuity
Review Frequency: Quarterly, or after major operational, staffing, service, client, security, bookkeeping, vendor, continuity, or process changes
Last Reviewed: [Insert Date]
Version: 1.0
