LEGAL RISK MANAGEMENT/ ENTERPRISE RISK MANAGEMENT

Is your business in control of its risk profile?

In the current economic climate, businesses that experience hard times often find out that they have not had complete control over their risk profiles and risk management. For many, explosive growth, an overly optimistic outlook, or simply a lack of focus on or understanding of the risks means that neither the business's management nor its employees have placed enough emphasis on risks.

Employees who cannot identify which risks the business is willing to undertake, and management that cannot describe the risk strategy/risk profile of the business cannot ensure that it is complied with at all times. Businesses whose employees and management operate without a clear picture of the risk strategy belong to the large group of entities in a state of blissful ignorance.

In our experience, only few enterprises can clearly define and articulate their actual risk scenario. Many have not understood the risk profile's importance to the enterprise, or cannot make an assessment of the risks that the enterprise is competent to run. But there's still time to change.

Advice on risk management

Kromann Reumert helps businesses set up a clear risk strategy. Our assistance includes:

• drawing up clear guidelines that specify the risks that the enterprise can and is willing to assume.
• defining a clear risk profile for the business
• setting up a risk management / governance structure in the organisation
• ensuring that the enterprise's total risk scenario matches the resources, competencies and financial capacity of the enterprise
• ensuring that the enterprise's total risk scenario will at all times match the risk profile and competencies intended by the companies
• ensuring that all managers and employees understand and observe the risk strategy and the associated guidelines and processes (the risk culture of the business)
• ensuring that the level of risk always corresponds to higher benefits for the business (using a cost/benefit analysis to manage risk).