Risk Management

RISK PROFILING & MITIGATION


  • Drawing up a Risk Matrix
    • Listing out the relevant risks
    • Evaluating the degree and likelihood of the impact
  • Identifying gaps between risk appetite and the attendant risks
  • Identifying Mitigation strategies to bridge the gaps; Evaluating them and recommending one or more mitigating measures.
  • Carrying out the mitigating measures

FOREX RISK MANAGEMENT


  • Suggesting & Evaluating alternate tools in managing Forex Risk
  • Actually, managing Forex Risk on behalf of Client
  • Subsequent support in Compliance with RBI Regulations
  • Designing and setting up a process for handling various Hedging Tools on an on-going basis

CREDIT RISK MANAGEMENT


  • Regular monitoring of Receivables
  • Regular follow-up and escalation strategy
  • Customer Data Bank
  • Credit Risk Profiling of Customers
  • Credit Insurance
  • Factoring
  • Legal recourse

INVENTORY RISK MANAGEMENT


  • Appropriate Inventory Handling, Storage and Packaging Practices
  • Appropriate Movement Analysis and Liquidation Strategies, especially in case of Products with finite shelf life
  • Setting appropriate inventory levels, such as Re-order levels etc. to avoid stock-out situations
  • Appropriate Storage & Transit Insurance against risk of Theft, Fire, Damage, Acts of God etc.

FIXED ASSET RISK MANAGEMENT


  • Appropriate Fixed Asset Identification, Classification, Numbering Practices
  • Proper Fixed Asset Records
  • Periodical Physical Verification, Valuation and Impairment Testing
  • Suitable Insurance of all the Fixed Assets against risk of Theft, Fire, Damage, Acts of God etc. Special attention needs to be given for electronic parts, damages caused by voltage fluctuations, technological obsolescence

MARKET RISK with respect to:


  • Product Quality, Suitability, Acceptability and Competitive Positioning and its impact on Sales / Revenues
  • Raw Material / Inputs / Utilities' quality, suitability, availability and pricing and its impact on costs

REGULATORY RISK with respect to:


  • Existence of the market (sale side / purchase side)
  • Existence / Running of the entity in its present form and overall business