Our goal is to help all sizes of organisations become competitively more able, benefitting from well embedded risk management, through expert risk facilitation and simple yet rigorous risk management processes. We provide a complete, behavioural and process risk management solution.
We are not tied to any software vendor, so our help will be impartial and focussed on your needs, not theirs!

Scope

Our risk consultancy offers 3 main areas of assistance:

• Help with expert Risk Facilitation (see our facilitation page)
• Help with Risk Assessment and Management Process (this page)
• Help with training your staff in Risk Management (see our risk training page)

Our special competence - Risk Management
Unlike other consultancies, we specialise in helping all sizes of organisations gain benefit from risk assessment and management. We will help you with not only the process element but also the behavioural element.
We are expert facilitators, educators and consultants in this area.
Blend these elements together and you have a recipe for true reward.

Help with the Risk Assessment Management Process
Put succintly, risk management process is a decision aide and helps you get the right information, to the right people, at the right time. The behavioural side is all about helping decision makers and decision supporters make those decisions reliably, based on certainty (or measured uncertainty) rather than "taking a gamble".

Risk Assessment and Management Process

Our process - We use an adaptive risk assessment and management process that is holistic and that is based on sound research and theoretical principles. We do not package and "sell" our process as such, but adapt it to suit your situation based on factors like need, corporate risk maturity, competence and exposure.
Our solution - covers the entire spectrum of risk ranging from project risk to programme risk management to organisational or enterprise wide risk management.
Holistic - because, in order for risk management to add value to an organisation, the risk information must encompass

Here is an extract of "The Professionals Handbook of Financial Risk Management" available from GARP

Risk management encompasses a broad array of concepts and techniques, some of which may be quantified, while others must be treated in a more subjective manner. The financial fiascos of recent years have made it clear that a successful risk manager must respect both the intuitive and technical aspects (the ‘art’ and the ‘science’) of the discipline. But no matter what types of methods are used, the key to risk management is delivering the risk information in a timely and succinct fashion, while ensuring that key decision makers have the time, the tools, and the incentive to act upon it. Too often the key decision makers receive information that is either too complex to understand or too large to process. In fact, Gerald Corrigan, former President of the New York Federal Reserve, described risk management as “getting the right information to the right people at the right time”.

History has taught us time and time again that senior decision makers become so overwhelmed with VaR reports, complex models, and unnecessary formalism that they fail to account for the most fundamental of risks. An integral part of the risk manager’s job therefore is to present risk information to the decision maker in a format which not only highlights the main points, but also directs the decision maker to the most appropriate course of action. A number of financial debacles in 1998, such as LTCM, are quite representative of this problem. Risk managers must work proactively to discover new ways of looking at risk and embrace a ‘common sense’ approach to delivering this information.

As a profession, risk management needs to evolve beyond its traditional role of calculating and assessing risk to actually making effective use of the results. This entails the risk manager examining and presenting the results from the perspective of the decision maker, bearing in mind the knowledge base of the decision maker. It will be essential over the next few years for the risk manager’s focus to shift from calculation to presentation and delivery.

However, presenting the right information to the right people is not enough. The information must also be timely. The deadliest type of risk is that which we don’t recognise in time. Correlations that appear stable break down, and a VaR model that explains earnings volatility for years can suddenly go awry. It is an overwhelming and counterproductive task for risk managers to attempt to foresee all the potential risks that an organisation3 ill be exposed to before they arise. The key is to be able to separate those risks that may hurt an institution from those that may destroy it, and delivery that information before it is too late.

In summary, in order for risk management to truly add value to an organisation, the risk information must be utilised in such a way as to influence of alter the business decision making process. This can only be accomplished if the appropriate information is presented in a concise and well-defined manner to the key decision makers fo the firm on a timely basis.

 

 

john algar.com

367 Eastfield Road, Peterborough, PE1 4RD
Tel: 44 (0)1234 82 67 81 - Fax: 44 (0)1234 82 67 83
 email: admin@johnalgar.com
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