Risk Management Consulting
If you don’t invest in risk management, it doesn’t matter what business you’re in, it’s a risky business. –Gary Cohn
Enterprise Risk Management (ERM) is the process of assessing risks to identify both threats to a company’s financial well-being and opportunities in the market. The goal of an ERM program is to understand an organization’s tolerance for risk, categorize it, and quantify it.
Many risk-management activities at the enterprise level are influenced by various types of pressure. Some are external, such as compliance or regulatory changes. For example, sometimes, unfortunate events in one’s own company or in the industry prompt internal soul searching regarding whether existing risk-management approaches are adequate. In more and more cases, however, CEOs and business leaders take a more proactive stance, as their goal is to further develop risk-management capabilities (proactively based on their strategic and economic priorities and growing aspiration levels) into a true competitive advantage—ultimately improving business decisions and increasing the value of the company in a risk-conscious way.
We help organizations design and implement integrated risk-management solutions and bring a risk-reward perspective to strategic decision making and day-to-day operations.
Insight into Enterprise Risks and Returns
We help organizations identify, quantify, and prioritize their most important risks as well as related returns. We do this using a combination of advanced quantification methods (such as analytic modeling and stress testing, also using nontraditional data sources) and the systematic integration of qualitative factors, including business-management judgment. To complement statistically validated approaches, we integrate forward thinking, especially in risk measurement and management reporting. In collaboration with our partners Intaver Institute, we advise organizations on appropriate data and IT solutions. As a result, organizations gain a clearer perspective of their most important risks and the related returns, as well as on the structure of their portfolio of risks and how they can use insights in order to improve strategic, financial, and operational decision making (for example, on risk mitigation, portfolio adjustments, contracting or risk-based pricing).
Risk ownership and strategy
Organizations should choose consciously what types and levels of risk to take and what to avoid and mitigate (“risk ownership”). We help organizations gauge their unique strategic, financial, and operational circumstances (“risk bearing capacity”) in order to ensure that their risk choices are aligned with their strategy and with their financial and operational risk-taking capabilities (“risk strategy and risk appetite”), so that they can optimize the risk-return trade-off.
Risk-enabled decisions and processes
When making important strategic, financial, and operational decisions, decision makers must consider risks related to information and associated trade-offs. We support our clients in integrating risk-return-related considerations into important decisions in M&A; routine processes, such as planning and capital allocation; and daily frontline transactions, such as contract structuring and pricing. We pay particular attention to ensure sound risk reporting, monitoring, and control processes.
Risk governance and organization
Everyone in an organization has some responsibility in managing risk across the organization, not just the chief risk officer. Shareholders, rating agencies, and regulators and policy makers request that companies involve their top management and even their boards. However, the right structural and organizational choices, the description of roles and responsibilities, as well as the appropriate definitions of organizational units and reporting lines, are critical to ensure robust and effective enterprise-risk management. We help clients define overall governance as well as the organization of the relevant risk, finance, and other control functions, and determine how they should interact with one another and other parts of the organization. Furthermore, we provide granular benchmarks on the appropriate size and cost for different risk and control units.
Mind-sets and behaviors of individuals and groups inside the organization—and not only the risk organization—play a crucial role in the execution of a company’s enterprise-risk-management strategy. We have developed a proprietary approach to risk culture that, for the first time ever, allows for the creation of a specific and detailed description of the core elements of a company´s risk culture, an analytical approach toward measuring and profiling that culture, overarching industry-specific benchmarking, and the identification of specific levers for actively influencing and developing risk culture.
Project Risk Management Technology Consulting
Proventures is a Strategic partner to Intaver Institute, Canada and delivers the Risk Management Solution at an enterprise level to the organizations.
Proventures advanced project risk management tools and methodologies enable project managers to develop and implement risk management system and project risk assessments on many major projects.
Proventures’ consulting services also include: