Business risks and opportunities are complex processes with many factors at play which are sometimes difficult to

recognize. In the main they take their roots and develop from strategic decisions and are generally closely associated with information asymmetries. Such information imbalances exist particularly amongst business partners, investors and boards of directors as compared to the actual business management.

 

Various business crises and bankruptcies in the recent and immediate past indicate that risks seldom become apparent in the form and degree as one would expect, but rather that they tend to follow their own rules and laws. In any case, they are rarely found in the corporate figures. Scientific research has shown that clear warning signals have nearly always been in evidence but that these have either not been taken seriously, incorrectly interpreted or not adequately responded to. Risk and opportunity management is invariably handled too unprofessionally, too passively and not systematically enough. After all, the interesting and dangerous aspects are usually not the most obvious to spot.

 

It is therefore imperative

	to find the warning signals systematically (Early Warning Systems),
	to be able to assess and evaluate them more effectively (Risk Management) and also
	to create an appropriate response system to these warnings (Event- and Crisis-Management).

 

As investor, board of directors or business partner, one can make the business management feel uncomfortable with the right questions, thus enabling them to keep a cool head at the right moment.

 

Talk to us – the specialists in operational risk and opportunity management.