Have you considered all the risks ?
As a successful investor or entrepreneur, you are probably well versed with most of the risks you take. However there is a group of risks that have rendered companies bankrupt, banks liquidated and may be to blame for today’s economic downturn. These are “Operational Risks” (not “operations” risk) and are just beginning to be identified, assessed and mitigated around the world under a methodology called Operational Risk Management (ORM).
ORM is a process framework that has been formulated by the Bank for International Settlements (BIS) based in Basel Switzerland under the internationally accepted Basel II Accord finalized in 2002 and being complied with by all central banks around the world. Under the accord, all banks must identify, assess, monitor and mitigate inherent operational risks associated with people processes, technology and external events such as natural disasters and outside threats. The importance of this regulation has been emphasized by making it mandatory for banks to set aside capital for operational risks in addition to the existing capital held for their business activities. In short, the better a bank manages its operational risks, the lesser the regulatory capital it requires.
ORM frameworks are very expensive to implement due to sheer scope of coverage. Operational risks exist everywhere and identifying, assessing, monitoring and ultimately controlling them requires an end-to-end implementation across the whole organization. Very large consultants and service providers are engaged in such projects against hefty consulting fees.
We host a team of finance, management and technology professionals having several years of experience in the operational risk discipline as managers and trainers at large internationally active commercial banks. We are bringing ORM to the small business community and allowing both investors and entrepreneurs to benefit from this amazing methodology and business tool.
Before you take a decision to buy or sell a venture, talk to us and let us coordinate an initial risk assessment. We allow you the freedom to implement ORM at your own pace. Beginning with an OR assessment to understand the processes and risks and moving on to full fledged monitoring of risks through key risk indicators, we can take you through the framework one step at a time and build our pricing around your plan. We can help you understand the concepts behind ORM and how these can be built into your business ventures as well as help you monitor your risks using our proprietary web-based risk monitoring and reporting system.
Whether you are an Investor or an Entrepreneur, our operational risk management tools, techniques and technology can help you
- Further understand the operational health of the business you are interested in investing or selling
- Identify and assess the existing operational risks and gain further insight into the workings of the business
- Negotiate with buyers or entrepreneurs to take into account such risks while agreeing on terms for investment
- Transparently monitor risks on a daily, weekly or monthly basis and provide steering and guidance towards mitigation
- Improve processes through better risk management and increase marketability of the entity
- Allow potential future investors transparency into the business processes and risks