The moment your company starts to trade, it will inevitably face risks stemming from internal and external. Therefore, company directors and employees must know how to detect, recognise, control and prevent risks as part of their daily activities.
The five main types of business risk
Business risks are generally categorised into five categories:
- Financial risk – A wide range of issues can threaten the financial health of a company. They can range from currency exposure to credit risk, cash flow shortages to rising costs.
- Strategic risk – This happens as a result of strategic decisions taken to steer the company in a particular direction. For instance, the company’s board decides to invest heavily in R&D, and while pursuing this path, the company may become less efficient in other areas and may realise its vulnerability.
- Operation risk – This relates to anything that can affect the day-to-day running of a company. It can stem from inadequate internal processes, a breakdown in the supply chain, or from external events like interruptions to the delivery of electricity. Its coverage is far and wide, ranging from legal risk, technology risk, property and equipment risk, security risk, human resource risk, suppliers risk, to market risk.
- Compliance risk – Every company is governed by laws and regulations to ensure that its business activities comply with the laws of the land. Compliance risk covers regulatory risk, workplace health and safety, environmental risk and social responsibility.
- Reputational risk – Any failure to meet expectations from stakeholders, customers, partners and even the public can cause them to form a negative view of the company. To avoid reputational damage, companies must ensure that the business activities carried out by the directors, employees and even partners are ethical and in compliance with relevant laws, policies and regulations.
How can Blackhawk’s risk management services help your business?
Risk management places an emphasis on the involvement of C-level executives to champion risk management as part of an organisation’s structure and processes. Ultimately, what risk management aims to achieve is to enable everyone in the company the ability to detect, recognise, control and prevent the risks, thereby safeguarding its business interests.
At Blackhawk Intelligence, risk management is part of our Corporate Intelligence function. Our risk management team works to uncover vulnerable areas within your organisation, as well as the interactions you have with suppliers, customers, trade bodies and government agencies.
As risk management is quite a wide and diverse subject, our approach can include but not limited to the following:
- Understanding your risk appetite.
- Taking a systematic approach to identifying risks.
- Maintaining a record of all identified risks.
- Developing a framework to evaluate how likely the risk will realise and what impact it will cause.
- Identifying the rightful owners so they can manage and monitor the risks accordingly.
- Sharing our results with you.
- Training your staff.
It must be said that not all risks are bad. Calculated risks, for instance, allow your company to gain competitive advantage and stay ahead.
Managing risks originating from global events
Today’s business world is intricately connected, given that money, goods and services can flow across international borders with relative ease. If you plan to invest in a foreign venture, rely on overseas partners on supply, or sell to consumers in another country, chances are, you want to pay more attention to global events and this is something that our risk management team can assist.
A localised intelligence risk report is at the heart of what we provide. As the name suggests, this report gives you localised information pertaining to specific geographical areas or countries you would like to do business in. We can provide information relating to:
- Political, social or religious unrest
- Criminal activity
- Traffic disruptions
- Terrorist threats
- Planned public demonstrations
- Key events in the area
Armed with this information, you and your team can make plans and decisions to mitigate the identified risks.
Gathering market intelligence in emerging markets
Gaining a foothold in emerging markets has long been considered the ultimate goal of many corporations. Yet data have suggested that not every venture into emerging markets is successful. The crux of the matter is that many corporations do not realise that they need to radically change how they market to the increasingly-wealthy but also highly value-conscious consumers in emerging markets.
Key to making good decisions pertaining to emerging markets is to rely on Blackhawk Intelligence to gather solid marketing intelligence for you. Our market intelligence services look at the full breadth of business activities, from consumer behaviour to geopolitical situation with an emerging market. Ultimately, what we deliver is a concise report that can help you and your team to drive strategic change in emerging markets.
When thinking about doing business with, merging with or acquiring another company, it is important to be aware of their financial situation. You don’t want to make a deal and then find out, further down the line, that they have saddled you with their debts or shoddy business plans. Our expert financial team can investigate both the visible and the covert finances of these companies, thereby reducing your risk and enabling you to decide if you want to proceed with this relationship.
In a similar way, you may be interested in investigating the financial health of your own business. This is useful as it identifies the strengths and weaknesses of your company so that you can work on minimising potential business risks.
The risk that keeps directors awake
It must be said that business risks can come from internal or external, and they cannot be totally eliminated. While business risk is inherent, many company directors believe that the business world is growing riskier as most business activities involve some elements taking place online. In other words, technology risk is a top concern. The odd thing is, while most business owners are aware of technology risk, many also acknowledge that their businesses are least prepared to handle technology risk. If technology risk is recognised as your top concern, then it is time to get in touch with our team by calling +44 (0)20 8108 9317.
Who are our risk services for?
Blackhawk’s risk management services are specifically designed for companies who wish to understand the business risks that affect them.
We provide our risk management services to:
- Financial institutions
- Multinational corporations
- High-net-worth individuals
- SMEs with an aspiration to expand internationally
- Companies who are about to engage in mergers & acquisitions
The bottom line is: we give you the advice you need to make an informed decision about what the best move is for your company.
Don’t put your business at risk
Blackhawk can help you understand the risks that could threaten your business. With this information and our support, you can better protect your business and remain successful.
To find out more about how Blackhawk can help you to reduce risk within your business, call us today on +44 (0)20 8108 9317.