Risk management

Risk Management in times of crisis is currently "bulletproof". If there's ever a time when it comes into its own, it's now! Here are 5 tips to follow, whether you're a Risk Management consultant or a business owner. The coronavirus (COVID-19) has gone from a growing medical crisis to a macroeconomic crisis in a matter of days. The potential impact of the virus spooked markets around the world as it spread outside China. While no one is sure of the final impact, it would be unwise for any nation or organization to ignore the rapidly spreading virus itself. Because of its impact, risk managers and internal controllers should now adopt a range of measures. Read also our article on the indispensable role of internal control and risk management for companies. 1. Risk management in times of crisis: setting up an emergency management system is essential Although it is impossible to anticipate all potential risks (certainly in the case of an epidemic like this one), setting up an emergency management system will help [...].

Lesson number one in Financial Risk Management: you have to take risks to win. This seems to be an intangible rule for any entrepreneur. But running a business isn't like playing at a casino! Even if risk is part of the entrepreneur's DNA, he or she must still be able to manage financial risk. Otherwise, the financial viability of the business could be jeopardized. In this article, we'd like to draw up a list of the major risks facing a company, and give you some tips on how to limit them. What is financial risk management? Financial risk management covers a vast field of possibilities, depending on a company's activity and financial operations. Generally speaking, a financial risk refers to the risk of losing money as a result of a financial transaction: the purchase or resale of a financial asset, or the sale of products or services with a financial impact. The nature of risks evolves over time via the emergence of new technologies, such as blockchain, and must be monitored by risk managers. Financial risk management takes several forms: Interest rate risk. This is the [...]

Internal control is a crucial element of risk management. Most of the time it is already implemented in companies, whatever their size or sector. But not always in a formalized way. Often, internal control is an afterthought to a problem encountered. It has become widespread following cases of fraud observed in recent decades, which could have been detected or even avoided thanks to it. How can we move from defensive to anticipatory mode? To do this, it is necessary to integrate it into the overall risk management process and to establish a few fundamental rules. What is internal control? In summary, internal control is a system that aims to ensure Compliance with applicable laws and regulations; Application of instructions and guidelines set by senior management; Proper functioning of the Company's internal processes, particularly those that help safeguard its assets; Reliability of financial and accounting information. In general, internal control contributes to the control of an organization's activities, the effectiveness of its operations and the efficient use of its resources. The internal control frameworks that support the internal control programs are [...]