Tag: Financial risk assessment

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How to Increase the Efficiency of Your Risk and Compliance Management Strategy By 50%

The proliferation of new business processes and the changing government rules and regulations around the globe are posing challenges for small and big companies alike. However, many companies still rely on an old-school approach when it comes to risk and compliance management. Business risks today are highly volatile and rapidly changing. Consequently, the compliance and risk management approaches of every company should continuously evolve to survive these dynamic changes. Experts at Infiniti Research believe that shifting focus on the alignment of functional processes and creating a symbiotic relationship between them can play a major role in enhancing the risk and compliance management of companies. Here are some proven strategies that can be adopted to improve the existing risk and compliance of companies.

At Infiniti, we help clients to gain a comprehensive view of the gaps in their risk and compliance management by setting benchmarks and analyzing their existing processes. RFP to get in touch with our experts for more insights.

How to improve risk and compliance management

risk and complianceUse a unique compliance and risk strategy

By adopting a unique risk and compliance management strategy, companies may anticipate future industry trends across business, products, processes, services, and geographies. This will help the organization gain a competitive advantage through well-planned compliance management programs.

Right combination of tools and technology

The risk and compliance process of companies can be made more efficient by identifying and adopting the right combination of technology and best practices. With the amount of advanced tools and technology today, this would be a rather easy task. Using a tool that can extract data from the system and then provide comprehensive insights on deviations from the desired risk and compliance policy will prove to be useful.

Collaboration and functional integration

Risk and compliance should be integrated into an enterprise-wide risk management process. This helps ensure that any issues faced by the organization relating to risk and compliance are not considered in isolation. It must include all activities related to risk and compliance management, and it should provide a framework that can be leveraged to assess an organization’s exposure to risk. This gives organizations a better opportunity to make timely and well-informed decisions.

If you’d like to know how Infiniti’s solutions can help overcome your business challenges, get in touch with our experts.

Enhance corporate governance

Compliance and risk management is closely linked to corporate governance. Effective corporate governance sets the tone for understanding risks and risk management capabilities and aligns the risk appetite with the organization’s opportunity-seeking behavior. Furthermore, elevating risk management to a strategic level strengthens board oversight, clarifies risk management roles and responsibilities, sets risk management authorities and boundaries, and ensure effective communication of risk responses in support of key business objectives.

Training initiatives

Not just the employees, even managers in some of the top companies around the globe still are completely unprepared to address risk and compliance related issues. Considering the fact that compliance is one of the greatest risks your organization faces, appropriate training should be at the top of any company’s risk management plan. Moreover, having well-defined processes as well as documented policies, procedure and guidelines help ensure better risk and compliance management throughout an organization.

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financial risk assessment

Infiniti’s Financial Risk Assessment Solution Helped a Manufacturing Firm Effectively Manage Risks and Enhance their Profit Margin by 22%

Today, manufacturing is no longer simply about making products. The recent technological advancements and the evolving customer demands have made it imperative for companies in the manufacturing industry to explore new ways of capturing market value. With this, companies in the manufacturing industry are under relentless pressure to enhance speed to market and customer engagement.

But, like all other industries, the manufacturing industry is also not free of risks. Some of these risks potentially destroy the business, whereas others cause serious damage that can be costly. In this context, it becomes increasingly important for manufacturing companies to monitor and manage all types of qualitative as well as financial risks in the industry. With over 15 years of expertise, Infiniti Research has helped many companies to identify potential risks in the industry and formulate actionable plans to mitigate them.

Interested to know more about our services portfolio and their advantages for your business? Request a FREE brochure.

Business Challenge

The client is a well-known manufacturing firm based out of Europe. The client was facing challenges in identifying the potential risks impeding their business growth. Some of the factors causing risks were delays from transportation, issues with third-party vendors, tariff wars, security threats, and workforce management challenges. All these risks not only affected the productivity of the company but resulted in financial losses for the client.Subsequently, , the company was not able to achieve their quarterly targets for 2 years consecutively. This affected the company’s gross profit.

Other challenges faced by the client were:

  • The supply chain disruptions were causing major challenges for the client. These delays occurred due to transportation issues and quality control issues with suppliers. Therefore, with Infiniti’s financial risk assessment solution, the client wanted to identify these supply chain risks before they impact the company’s bottom line.
  • As cyber risks posed challenges for major manufacturing companies operating in and around Europe, the client wanted to monitor the security threats and mitigate them.
  • The client also encountered difficulties in staff management and succession planning. As staff management was essential to keep the business running smoothly, the client wanted to evaluate the workforce risks.

With Infiniti’s financial risk assessment solution, the client wanted to identify all the risks affecting the company and make actionable plans to mitigate them.

Solutions Offered and Value Delivered

The experts at Infiniti Research thoroughly analyzed the client’s historical sales data, factors affecting their sales, and major risks facing the company. In the initial phase, the experts analyzed the risks that the business is exposed to in its operational environment. The second phase included analyzing the link between these risks and different factors within the organization. They also carried out a comprehensive analysis of the severity of the risks and how it affected the business functions. The final phase of the financial risk assessment engagement involved prioritizing the risks based on its severity and managing them individually.

With Infiniti’s financial risk assessment solution, the client was able to identify all the risks affecting their organization and prioritize them according to their severity. Infiniti’s financial risk assessment solution also helped the client to understand all the factors affecting their supply chain delays. This helped them undertake the necessary steps to effectively meet the demands of their products. Consequently, they were able to reduce over-stocks and stock-outs. The experts also helped the client to identify all the cybersecurity threats facing their company. Infiniti’s financial risk assessment solution helped them to protect all their critical data. Also, the financial risk assessment engagement helped the client to understand the workforce management challenges and mitigate them.

Furthermore, with Infiniti’s financial risk assessment engagement, the client was able to:

  • Make accurate market forecasts based on patterns derived from historical sales
  • Closely monitor the movements in the market and anticipate activities that could potentially affect the financial aspect of the company
  • Effectively segregate the tasks to prevent possibilities of fraud and internal threats
  • Identify periods of low cash inflows and effectively plan budgets accordingly

With Infiniti’s financial risk assessment solution, the client was able to make better financial planning and meet their quarterly target. Eventually, this resulted in an increase in profit margin by 22%.

A key step to managing your company’s risk is by conducting a comprehensive financial risk assessment. Request a FREE proposal to know how our engagement can help you mitigate the industry risks.

How do you conduct a financial risk assessment?

Financial risk assessment involves a detailed analysis of potential risks affecting the organization. A well-devised financial risk assessment process supports companies in identifying the risks in the industry and provides an opportunity to mitigate the risks that are most likely to occur. Having a financial risk assessment strategy will help companies to prepare themselves financially for the most likely risks in the industry.

There are three basic steps in financial risk assessment.

Gathering industry data – The initial process in financial risks assessment process involves gathering industry-specific data. This involves gathering information about the company structure, client base, third party engagement, and more. The information collected from these sources will help companies understand risks associated with each sector of the organization.

Interviewing key stakeholders – The company should identify key stakeholders in the industry. Gathering information from them will help companies categorize the common risks in the market and prioritize them. By closely monitoring the key competitors, organizations can identify the risk mitigation strategies employed by them.

Documenting the report – The final step in financial risk assessment process involves documenting the findings and developing recommendations for mitigating the industry risk.

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Financial risk analysis

Financial Risk Analysis Helped a Banking Industry Client Achieve Savings of $ 3.2 Million – An Infiniti Research Success Story

Business Challenge

Over the last couple of years, the banking industry has undergone significant transformation due to factors including business model transformation, adoption of advanced technologies, changing regulatory environments, and more. In an increasingly complex environment of the banking industry, new complexities arise, requiring an adjustment in risk management systems and procedures. Financial risks in the banking sector can potentially cripple the business if not managed on time. Therefore, it is imperative for companies in the companies in the banking sector to implement financial risk analysis and management strategies to identify potential risks in advance, analyze them, and take steps to eliminate them.

The client, a well-known bank in Canada wanted to develop financial risk management strategies to manage risks affecting the growth of the industry. Changes in market variables, including interest rate and exchange rate fluctuations, as well as movements in market prices of securities and financial derivatives created risks that negatively impacted the financial capital of the client. Also, these risks affected the company’s bottom line. Hence, the client approached Infiniti Research to leverage their expertise in offering financial risk analysis solutions. With Infiniti’s financial risk analysis solution, the client wanted to develop a comprehensive and dynamic framework for monitoring, measuring and managing liquidity, interest rate, foreign exchange, and commodity price risks.

Interested to learn more about our financial risk analysis? Request a FREE brochure to learn more.

Solutions Offered and Value Delivered

With years of expertise in offering actionable financial risk analysis solutions, the experts at Infiniti Research helped the client devise an effective financial risk management strategy. Financial risk analysis also involved examining changes in market variables, including interest rate and exchange rate fluctuations, as well as movements in market prices of securities and financial derivatives. Our experts also analyzed historical records to predict when the market fluctuations and disruptions were about to occur. This helped the client to create proactive and reactive methods that can prevent financial from impacting the security of the organization.

This highly focused approach helped the client to build strategic financial risk management strategies that minimized the probability of the problem occurring again. Furthermore, implementing risk management strategy reduced the loss in profit for the client. In a span of seven months, the financial risk analysis helped the company to successfully reduce their financial costs and achieve savings of US $3.2 million.

We’ve helped various companies identify the key financial risks and implement effective strategies to reduce the impact. Request a FREE proposal to know how our financial risk analysis solutions can help your business.

What is Financial Risk Analysis?

Financial risk analysis is the process of evaluating and managing the potential risks in the market that negatively impacts the financial capital of the organization. Financial risk analysis helps organizations understand the potential risk factors affecting their business and implement strategies to reduce them. Also, analyzing financial risks gives an idea of the potential risks/events and the time needed to recover and restore operations. Having a robust financial risk analysis strategy allows businesses to prepare themselves financially for the most likely problems.

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