Risks?
We focus on three different, but connected kinds of risk: Geopolitical risks, macroeconomic risks and climate risks. Our focus is to identify and analyse these risks and translate them into a corporate context.
While the risks listed here may seem very different in their nature, they have something in common: There is a systematic way of handling them. And it is not rocket science.
Since most of us do not have the ability to affect the probability of these general and remote risks materialised, our focus is on giving practical advice on the operational risk that may arise for individual companies as a consequence of the general risks. And if your business is in the financial sector, we have an opinion about that, too.
Geopolitical risks
Geopolitical risks often materialise into operational costs and/or balance sheet through interest rates, commodity prices, energy prices, the safety of shipping lanes.
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Macroeconomic risks
Macroeconomic risks, deriving from cyclical factors and policy changes, impact business profitability via economic activity and regulatory changes. They are also the major drivers of financial factors such as interest rates, exchange rates and credit conditions.
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Climate risks
We are no climate experts. But we are keenly aware that climate changes, often underlying in nature, prompt physical risks, such as natural catastrophes, pandemics etc. and manifest themselves in terms of direct losses or significant changes in insurance costs.
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Handling risk
In principle, it is not that difficult. It consists in
- Identifying the risk drivers
- Estimating the probability they will materialise
- Understand how you are exposed to the risk
- Evaluate the potential impact
- Mitigate risk where possible, and
- Decide what to do about the residual risk
Of course there are a few more details to it…
How we work
You are the specialist in running your company. You are likely aware of business and operational risks that may influence it. We are specialists in identifying the more remote risks that unfortunately may influence your business as well.
All assistance offered by GRM Group takes your concrete situation as a point of departure. Based on the nature of your business, we can assist in identifying threats to your business. We help in evaluating the probability that the threat materialises. Together, we evaluate the exposure your business may have to the threats and the impact.