Opportunity/Risk Assesment

Risk is the flip side of opportunity. Once an organization begins pursuing any opportunity (e.g., new products or international market expansion) it becomes exposed to the risks associated with that venture. Risks can be viewed categorically (capital, finance, operations, business continuity) or holistically across the enterprise. Although risks may seem overwhelming when viewed holistically, it is worthwhile for the board and senior management to view the entire risk profile. Otherwise, inter-relationships, which may compound a potential loss, may be overlooked.

Business risk management, also referred to as ‘enterprise risk management’ or ‘strategic risk management,’ is an outgrowth of the risk management field. Because of its foundation in insurance, traditional corporate risk management was concerned only with those risks that were insurable (e.g., liability claims, property losses, workers’ compensation awards, and health benefits). In the mid-1990’s, significant losses to financial institutions (e.g., the destruction of Barings Bank) highlighted the restrictive view of risk management in financial institutions and consequently in other organizations.

Partnering with your management team, we develop risk maps that display your current opportunities and their associated risks. Collectively, we assess the magnitude of each risk, any inter-relationships between risks (that may compound the exposure), and then highlight the primary means to mitigate potential loss. We help you find ways to transfer loss, through contract provisions, hedging, and other means.

Call Brian Gagan, Senior Consultant, to discuss a free initial consultation.

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