Setting up and evaluating risk management systems

Risk: it can mean receivables going unpaid, refinancing efforts failing, liquidity shortages arising, damage occurring as a result of fraud committed by third parties or even a company's own staff, or a company discovering that its resources are insufficient.

Damages may also arise as a result of problematic company processes, failure to implement checks, inadequate resource planning or improper communication channels.

Every company needs to recognise the risks it faces. The central focus of a risk-management system is thus to identify an individual company's inherent risks and to evaluate the potential dangers that they may cause for the business. On this basis, measures need to be developed and processes must be set up within the business that effectively manage and monitor these risks with the purpose of avoiding harm to the entity.

We can advise you not only during a strength evaluation of your risk management strategy but also help you set up an effective risk management system that is specifically geared towards the demands, size and complexity of your business.

We would be happy to guide you along each step of the way, even during meetings with your bank: the proven existence of a functioning risk management system will have a positive impact on how your bank rates your risk levels, which will, in turn, lead to a better rating and with it better interest terms.

Our partner Per-Olaf Ulrich has produced a range of publications focusing on how to build and structure an effective risk management system.