Risk Management: A Strategic Competitive Advantage

Many Founders, Owners and CEOs view risk management as a rainy day fund that they hope they never need to use. However, in today’s volatile market, transitioning risk management from a defense-only approach into a performance driver is what gives companies a true competitive edge.

We utilize a systematic 3-tier Engagement Model as follows:

Phase 1: The Diagnostic (Month 1) :

This is the “deep dive” risk assessment phase. This phase entails the following :

(a) Identification of Financial, Operational & Strategic Risks.

(b) Heat Mapping: Scoring each risk based on impact ($ value) vs. Probability (%).

(c) The Gap Analysis: Reviewing current insurance, relevant internal controls, and cash reserves against the identified threats in (a) above.

Phase 2: The Infrastructure Build (Month 2-3):

This is the phase where the business risk framework is built, and includes the following:

(a) Policy Design: Create or update the Delegation of Authority(DOA) levels, fraud prevention protocols, and credit policies.

(b) Sensitivity Analysis Modeling: Build a 3-way financial model (P&L, Balance Sheet, Cash Flow) that allows for “stress testing” (eg. what is the effect on Profitability & cash flow if you lost your client who accounts for 2% of revenue?)

Phase 3: Strategic Oversight (Month 4 onwards):

In this phase risk management is integrated into the monthly cadence. The deliverables include:

(a)The Risk dashboard: A 1-page visual in the monthly board deck showing whether key risks are trending up or down.

(b) Quarterly Stress Tests: Re-running of financial models based on market changes (inflation, interest rates etc.)

Why Us?

With more that 25 years experience as a Financial Auditor, SOX Management Consultant and Corporate Financial Leader, we bring extensive expertise in risk management. Let’s help you build financial resilience in your organization. Schedule your free 30 minutes Discovery Call today.