Services
Risk Management
Olvera takes a practical approach to risk management focusing on the financial risk aspects of its clients’ projects.
Risk management itself is the process of identifying, assessing and controlling financial, legal, strategic and security risks to an organisation’s capital and earnings. These risks stem from a wide variety of sources, including financial uncertainty, legal and statutory liabilities, strategic management errors, accidents, and natural disasters.
Unforeseen events happen and whilst the impact could be minor such as an increase in expenses, it could be financially catastrophic resulting in the closure of the business.
Olvera helps our clients minimise, monitor, and control the impact of negative events while maximising opportunities. A consistent, systemic, and integrated approach to risk management can help determine how best to identify, manage, and mitigate significant risks.
For risk management to be effective, it must be systematic, structured, collaborative, and cross-organisational. There are several ways to categorise an effective risk-management process’s constituent elements, but at the very least, it should incorporate the following risk management components.
Olvera manages risk through five phases:
1
Risk Identification
Risk identification is the process of documenting potential risks and then categorising the actual risks the business faces. We work to systematically identify all possible risks because it reduces the likelihood that potential sources of risk are missed.
When identifying risk, it’s also important to not just think about the risks that the business currently faces, but those that might emerge in the future.
2
Risk Analysis
Once risks have been identified, the next step is to analyse their likelihood and potential impact. We divide risks into “serious, moderate, or minor” or “high, medium, or low” depending on their potential for disruption.
The exact categorisation method is less important than the recognition that some risks present a more pressing threat than others. Risk analysis helps businesses to prioritise mitigation.
3
Response Planning
Once we have identified the risk and the likelihood of the potential outcome, we need to establish a response programme to mitigate the risk or reduce its impact.
4
Risk Mitigation
Risk mitigation is the implementation of your response plan. It is the action your business and its employees take to reduce exposure. We design controls that reduce the risk down to appropriate levels. These controls must be tested to ensure they are suitably designed and operating effectively.
5
Risk Monitoring
Risks are not static; they change over time. The potential impact and probability of occurrence change, and what was once considered a minor risk can grow into one that presents a significant threat to the business and its revenue.
It’s important to understand that risk management is not a one-off event, it’s a process that recurs through the life of an organisation as it endeavours to anticipate threats and proactively handle them before they have an adverse impact.
Olvera delivers its risk management in three service lines:
