Key Risk Indicators and Management Action Triggers

A fast-changing global environment demands organizations have both financial stability and liquidity. The right outcomes depend on continuous rigor in governance, models, and processes across the finance function. The key is to establish a risk view that goes beyond the defensive and value preservation. This view of risk starts with a company’s ability to understand and identify signals of change for their company, their industry and the business world in general. When companies do not see change coming, it is difficult to respond and stay afloat. Nevertheless, when companies anticipate disruptive change, they can find ways to leverage it and take their business to the next level.

Companies should also be vigilant about risks presented by suppliers. A counterparty who defaults on a contract, or whose business collapses, can have serious financial and reputational ramifications for connected parties. Fraud risks can also increase when cash is tight. Some employees become more opportunistic — and external hackers more resourceful. They find security lax in areas of the business that used to be better resourced … and they strike. Are your systems and policies sufficiently robust to ward off the risk of fraud?

Financial risks have probably never been acuter. Capital reserves, credit portfolios, investment policies, capital, and debt profiles all demand constant scrutiny to adequately manage and mitigate risk. Past corporate failings have been attributed to lack of accountability, strategy, and transparency. Discover the various financial risk services we offer to help organizations across the full lifecycle of financial transactions. From governance and processes to technology and reporting, our services can enhance transparency, efficiency, compliance, and financial integrity.