Friday, February 24, 2012

What is due diligence in risk assessment and subsequent risk ...

What is the term -due diligence- when referred to in the context of risk assessment and the subsequent mitigation of risk management? In business and the appropriation of the management of risk basically refers to the act of intelligence gathering activities (or the lack of them) and how it may affect the outcome of any potential deal or contract which has the potential of major commercial risk and could lead to irreparable damage to reputation and/or business model integrity. Prior to entering into any business deal or agreement it is essential that the entire spectrum of the proposed deal, merger, acquisition, creation of partner channeling or the creation of proposed joint ventures be thoroughly investigated and assessed for the potential risk burden which can (and frequently does) send a business model into a tailspin when it all goes -pear shaped?. However, undertaking due investigation of a potential partner or other trading scenario is the first item which should appear on the agenda, and while the initial expenditure for just such an investigation may appear high, it nowhere near comes close to the potential losses a commercial enterprise or entity may incur without having first evaluated and mitigated the potential risk in all areas. Entering into formal trading agreements and/or mergers with commercial interests in a country where there is -less than robust operating parameters- and -unsophisticated corporate registers where records are incomplete or inaccurately filed- are the norm, self preservation is the order of the day. However, how can one possibly hope to undertake a thorough investigation of potential risk and outcomes from several thousand miles away? The answer is to engage the services of a company which specialises in undertaking on their clients? behalf -innovative enquiries, extensive research and tested methodologies to provide (them) with accurate intelligence- and which bring about a -greater level of confidence to them in completing a deal or to minimise any exposure to hidden and potential liabilities- Regulator, shareholder and public scrutiny is now at an almost unprecedented level and it is essential that management teams are seen to be taking appropriate steps in order to mitigate potential risk and by association potential losses to the business model both now and into the future and certainly for the duration of the proposed deal, merger, acquisition, creation of partner channeling lifecycle. More detailed information concerning robust risk assessment procedures in all aspects of a business model and to undertake adequate business intelligence activities () when the stakes are high, take a look on the website of the RISQ Group today, the address of which is .

Filed Under: Day Trading

Tags: Business ? Day Trading ? DayTrading ? Finance

Source: http://business44.com/2012/02/what-is-due-diligence-in-risk-assessment-and-subsequent-risk-management/

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