The five main types of business risk
A wide range of issues can threaten the financial health of a company. They can range from currency exposure to credit risk, cash flow shortages to rising costs.
This happens as a result of strategic decisions taken to steer the company in a particular direction. For instance, the company’s board decides to invest heavily in R&D, and while pursuing this path, the company may become less efficient in other areas and may realise its vulnerability.
This relates to anything that can affect the day-to-day running of a company. It can stem from inadequate internal processes, a breakdown in the supply chain, or from external events like interruptions to the delivery of electricity. Its coverage is far and wide, ranging from legal risk, technology risk, property and equipment risk, security risk, human resource risk, suppliers risk, to market risk.
Every company is governed by laws and regulations to ensure that its business activities comply with the laws of the land. Compliance risk covers regulatory risk, workplace health and safety, environmental risk and social responsibility.
Any failure to meet expectations from stakeholders, customers, partners and even the public can cause them to form a negative view of the company. To avoid reputational damage, companies must ensure that the business activities carried out by the directors, employees and even partners are ethical and in compliance with relevant laws, policies and regulations.
How can Accuritiss risk management services help your business?
Risk management places an emphasis on the involvement of C-level executives to champion risk management as part of an organisation’s structure and processes. Ultimately, what risk management aims to achieve is to enable everyone in the company the ability to detect, recognise, control and prevent the risks, thereby safeguarding its business interests.
At Accuritiss, risk management is part of our Digital Transformation function. Our risk management team works to uncover vulnerable areas within your organisation, as well as the interactions you have with suppliers, customers, trade bodies and government agencies.
As risk management is quite a wide and diverse subject, our approach can include but not limited to the following:
- Understanding your risk appetite.
- Taking a systematic approach to identifying risks.
- Maintaining a record of all identified risks.
- Developing a framework to evaluate how likely the risk will realise and what impact it will cause.
- Identifying the rightful owners so they can manage and monitor the risks accordingly.
- Sharing our results with you.
- Training your staff.
It must be said that not all risks are bad. Calculated risks, for instance, allow your company to gain competitive advantage and stay ahead.
Managing risks originating from global events
Today’s business world is intricately connected, given that money, goods and services can flow across international borders with relative ease. If you plan to invest in a foreign venture, rely on overseas partners on supply, or sell to consumers in another country, chances are, you want to pay more attention to global events and this is something that our risk management team can assist.
A localised intelligence risk report is at the heart of what we provide. As the name suggests, this report gives you localised information pertaining to specific geographical areas or countries you would like to do business in. We can provide information relating to:
- Political, social or religious unrest
- Criminal activity
- Traffic disruptions
- Terrorist threats
- Planned public demonstrations
- Key events in the area
Armed with this information, you and your team can make plans and decisions to mitigate the identified risks.
The risk that keeps directors awake
It must be said that business risks can come from internal or external, and they cannot be totally eliminated. While business risk is inherent, many company directors believe that the business world is growing riskier as most business activities involve some elements taking place online. In other words, technology risk is a top concern. The odd thing is, while most business owners are aware of technology risk, many also acknowledge that their businesses are least prepared to handle technology risk. If technology risk is recognised as your top concern, then it is time to get in touch with our team by calling
Who are our risk services for?
Accuritiss risk management services are specifically designed for companies who wish to understand the business risks that affect them.
We provide our risk management services to:
- Financial institutions
- Multinational corporations
- High-net-worth individuals
- SMEs with an aspiration to expand internationally
- Companies who are about to engage in mergers & acquisitions
we give you the advice you need to make an informed decision about what the best move is for your company.