We Identify and Mitigate Risks
Entrepreneurs understand that money provides financial security against uncertainty. This way, they are averse to employing their monies in full production activities, knowing this will provide the hedge to manage uncertain future. Where uncertainty is high and investment confidence is low, due to uncertain future, a nation can be thrown into recession, as resources are not employed in full economic activities to create jobs and boost the supply of money in the economy. Today’s decisions are shaped by the fear of the unknown future. While risk and uncertainty are inescapable, the payoffs and consequences of today’s actions and inactions are high. While confidence in the future is subjective, it is best to plan for the unknown the best you can.
People are not committed to making investments because of the level of uncertainty and irreversible nature of wrong investments. That the outcome of risk can be known provides the basis for sound risk management practice, cost-benefit analysis, and budgeting. Since there are uncertain situations where the outcomes of planning, budgeting and risk analysis are not known, the establishment of management controls makes no difference. Whereas the certainty of outcomes is insurable, it is difficult to insure uncertain outcomes. It is certain that vehicular and workplace accidents will occur. It is certain that a brand may underperform in the market. It is also certain that production machines, systems and processes may experience depreciation and underperformance. These risks are insurable.
It is uncertain that company stocks will maintain financial market performance. It is uncertain that top talents will remain under employment. It is also uncertain that share of market will remain at equilibrium over the next 10 years. It is uncertain that there will not be technology disruption over the next 10 years. It is uncertain that a 70 year old will live over the next 20 years. These uncertainties are not insurable and, therefore, have no sound basis for cost-benefit analysis and institution of management controls to mitigate their occurrence. However, entrepreneurs are known to invest in uncertain future where individuals would rather prefer to hold on to money without investment commitment. Investments are a win or lose events – a win provides the best financial reward.
How does Decision City provide help? At Decision City we take a consultative approach at all times. We work hard to speak with all concerned, review the micro and macro environments dynamics to discover risks and uncertainties. We also understudy the changes in the market structure and operating processes of client-organisations as it affects the immediate client project to be executed by Decision City.
At Decision City, we adopt the global best practice in risk identification and mitigation. We beam our searchlights on the mandatory three lines of defence to identify risk at process, systems, and policy levels. We then construct unique, tested model, to evaluate the value-at-risk while also discovering the path to sustainable risk assumption, reduction, avoidance, and transfer, based on knowledge of the probability of the risk occurring and the severity.
At every stage of our risk management role, communication is inevitable. This helps us integrate management controls, internal lines of control, financial control, security, quality control, and compliance frameworks in client-organisation whilst also training manpower to be risk-aware.
Transformation is achieved when clients are aware of all or specific risks affecting their organisation and is able to work with Decision City on a continuous basis to build business and risk support models to assume, reduce, avoid or transfer risks based on discovered scale of impact on current and future business outcomes.
Related Case Studies
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Telecom: Foneworx Expansion To Nigeria
This consultation service was offered to Foneworx South Africa towards its market expansion drive to Nigeria.