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quantifying your risks

A key element in our approach to risk management is our belief in the value and power of quantifying risk.  Our methodology uses real financial values, based upon your business plan, and percentage probabilities of risks occurring rather than abstract scores or ill-defined categories.  This enables us to calculate and illustrate graphically, the uncertainty in your business plan and the likelihood of a range of possible financial outcomes:
. performance will be equal to or better than the plan
. performance will be within the acceptable range for the board and regulators
. financial covenants will be not breached

Whilst this may appear to be a time-consuming task, we have developed standard quantified assessments that can be varied to take account of the size of the association and the effectiveness of the control environment. 

Quantifying key risks enables organisations to:
. identify risks with large impact and deploy resources to ensure that these risks do not materialise
. detect risks with a significant effect on your business plan and develop strategies to manage these risks
. assess the overall effect of risk in your business plan to ensure that the total risk is within the organisation's risk appetite
. assess the value of risk actions (i.e. balance the cost of undertaking the activity against the effect of reducing risk)


words of wisdom

"Do not worry about your difficulties in Mathematics. I can assure you mine are still greater."

Albert Einstein




Hargreaves Risk and Strategy