Operational and Financial Risk

When performed correctly, risk assessment functions as a crystal ball, enabling business owners and leaders the ability to prepare for future risks while maintaining a firm grip on risks that have been identified. Done correctly, operational and financial risk management can help stimulate financial growth.

Operational and financial risk management requires experience and knowledge gained from multiple client interactions. T&H has collaborated with financial institutions to help them improve in several areas. Deep dives into their business models and goals enable us to deal with capital, credit risk and liquidity risk.

In addition, our team’s knowledge of government entities enables us to move quicker when it concerns government regulations. We’ve been able to anticipate these challenges, and devise the right type of plans to reduce the possibility of penalties while achieving high levels of transparency.

We help our clients balance and meet their financial challenges by focusing on the core drivers for mitigating and managing risk and uncovering opportunity. The services we deliver enable clients to overcome weaknesses, provide executable recommendations, and inform decision-makers.

Much like financial risk management, the area of operational risk management can present a wide variety of challenges, which need to be identified. With the right type of planning and execution, operational risk can be reduced, and made even more manageable.

T&H views operational risk management as a cycle that includes risk assessment and risk decision-making. After defining the cycle, T&H creates action items and outlines the proper responses, enabling our clients to be proactive, not reactive.

Another important fact includes implementing risk controls, which when executed properly produces acceptance, mitigation, and the overall avoidance of risk.

We believe that risk management doesn’t have to be complicated, and in our roles as consultants, we strive to create a process that makes use of simple principles. Working together with our clients, the results are easy to view and measure.

At the beginning of an operational risk management assessment, it’s vital to establish the context, which includes defining the scope of activity and the objectives.

Stakeholders are identified in this step, along with their concerns and issues. Getting this step right helps guide the rest of the project.

Data gathering, analysis, and intake sessions with key managers and department heads helps us build this solid base, which leads us to the core of operational risk management.

From context, we can identify the risks and then conduct an analysis. The information produced by these two steps leads to risk evaluation.

Finally, T&H submits a risk treatment assessment, complete with documentation, which enables our clients to monitor the defined objectives and react accordingly when they undergo change.

Operational and financial risk management doesn’t have to be complicated. T&H believes that conducting research and supporting it with what we’ve learned from other client engagements are what make our consultancy one of the best available.

Over the years we’ve refined our processes and expanded our capabilities by hiring experts from a variety of different fields and disciplines. The end result is a team that can draw on multiple disciplines and experiences to produce operational or financial risk management solutions to our clients.