Risk Management

Issues:

Business is an on-going process, facing different types of risks i.e. internal or external and specific to your business objectives. To effectively manage risk, you should be prepared for both internal and external factors. Even big corporate houses overlook things that don't directly impact their business and are therefore unprepared to deal with change.

Strategic – Compliance, Operational, Financial and Reputational Risks
Natural Disaster – Floods, storms, bushfires, pandemics, drought
Legal Risks – Insurance issues, resolving disputes, contractual breaches, non-compliance with regulations and liabilities
Global Risks – Currency/Exchange rate fluctuations, commodity exchange price fluctuations, stock market fluctuations
Technology Risks – Computer network failures and problems associated with using outdated equipment
Regulatory and Government policy changes – Water/Quarantine/Carbon emission restrictions, tax
Environmental – Climate change, chemical spills and pollution
Work, health and Safety Risks – Accidents caused by materials, equipment or location of your work
Property and Equipment – Damage from natural disasters, burst water pipes, robbery and vandalism
Security Risks – Theft, fraud, loss of intellectual property, terrorism, extortion, online security and fraud
Economic and financial Risks – Global financial events, interest rate increases, cash flow shortages, customers not paying, rapid growth and rising costs
Environmental Risks – Hazard-based (e.g., chemical spills), uncertainty-based (e.g., natural disasters) or associated with opportunities (e.g., taking them or ignoring them)
Industrial Risks – Human error issues, conflict management and difficulty filling vacancies
Business or Industry Issues – Failure or interruptions to the supply chain of products or raw material
Market risk – Changes in consumer’s preference and increased competition
Failures or interruptions to the delivery of power, water, transport
Personal safety in workplace
Frauds including insurance

INDIRECT RISKS

For example, while businesses might not be directly affected by a natural disaster, but they still may suffer, if their suppliers, customers or general locations are affected.

Consider how these scenarios could affect business:

If suppliers are affected, you may run out of the products you sell, or the materials you need to make products
If customers are personally affected, their priorities may change and you could experience a reduced demand for your products or services

If general location is affected, you and your customers may not be able to access your premises or your utilities could be affected. For example, if you lose power:

Business will not be operative

May need to throw out any perishable goods and replace them, which can be costly

Solution:

Solidus Capital offers the following measures to mitigate risks and prevent business losses:

Business Continuity Planning (BCP)
Risk Management Plans covering Strategic, Compliance, Operational, Financial and Reputational risks which can help you manage your business risks and recover from risky situations
PPRR (Prevention, Preparedness, Response & Recovery Model) Risk Management Model is a comprehensive approach to risk management and can save your business time and money when responding to a setback, incident, disaster or emergency voluntarily to disaster management plan
Fraud prevention programs
Incident response programs, developing a recovery plan
Cyber security for your business
IT Risk Management
Strengthening of internal controls and systems for anti money laundering
Preventing financial frauds by taking Insurances and Indemnity covers financial losses