Risk is inherent in everything we do.
In business, as in our everyday lives, the way risk is managed is an integral part of success.
The need for and importance of risk assessment and risk management is now widely regarded in successful commercial and public sector organisations.
Although most organisations have some form of corporate risk management process and procedures, these may not be organised and coordinated in the most efficient way.
Effective risk management strategies are vital.
AVH Consultants can assist you to improve your risk management infrastructure and capabilities by providing:
- Independent risk management reviews
- Risk management programme design and implementation
- Risk assessment and identification services
- Outsourced risk management services
To know more about AVH Consultants Risk Rating Consultancy Services, write to firstname.lastname@example.org.
Enterprise Risk Management Consulting Services
Enterprise risk management (ERM) is a structured, consistent, and continuous risk management process applied across an entire organization that allows companies to better understand and address material risks. Corporate boards, ratings agencies, and regulatory bodies are among the key drivers for advancing ERM. The implementation of ERM can facilitate better capital resource allocation decisions, increase operational efficiency, and enhance a company’s risk control efforts to support critical strategic, compliance, and governance initiatives. Marsh Risk Consulting (MRC) can help your organization apply an integrated approach to identifying and assessing business-critical risks, evaluating existing risk management infrastructure elements, and constructing continuous, in-depth ERM processes.
MRC’s ERM specialists analyze risk from an integrated perspective, exploring risk relationships within your organization to create a more sophisticated understanding of your company’s material risks. Whether your company is just beginning the ERM journey or has an established framework in place, MRC can assist you in your ERM efforts.
Who It’s For
Any publicly traded or privately held organization:
- In a highly regulated industry.
- Seeking to better understand and mitigate the risks it faces across the entire organization.
- Wanting to benchmark and improve existing risk management arrangements.
- Looking to coordinate and formalize its risk management efforts across the enterprise.
What You Get
- A proven process to help you identify and assess material risks, develop specific mitigation strategies, and assess enterprise-wide technology platforms for ongoing monitoring and reporting.
- The ability to create a holistic, enterprise-wide risk aware culture, drawing upon MRC’s expertise in industry issues, risk analysis, analytics, organizational change, and risk technology.
Identification, Assessment, Analysis, and Prioritization
Current State/Gap Analysis
When considering the steps necessary to implement an ERM framework, it is useful to first identify and compare your organization’s existing capabilities relative to what capabilities management would like to have in place. MRC provides a current state assessment, as well as a gap analysis against best practice and a benchmarking report.
Risk Identification and Assessment
Risk identification and assessment is a critical framework component. We take a structured approach to assess risks specific to your organization. This includes the collection, identification, categorization, prioritization, and mapping of risks to align with your organization’s business objectives and strategy. The result is a strategic organizational risk map.
Risk analysis enables you to better understand the impact risk has on your organization and your business objectives. MRC takes a disciplined approach to understanding your risk appetite and developing tolerance thresholds; modeling risks and their variance; providing an analysis of the projected impact of mitigation strategies; assisting you in determining optimal capital allocation; and considering the upside of risk to your business.
A systematic ERM approach calls for the analysis of possible actions taken with respect to each risk—accepting it, managing it, or exploiting it. Moreover, these options typically necessitate an implementation plan. MRC offers an evaluation of risk treatment options including the projected costs and benefits; identification of risk ownership; the recommendation of tailored solutions appropriate to your business and objectives; and the implementation of risk mitigation strategies.
Managing risk across the enterprise requires coordination. The information produced by the various businesses and risk management functions in the risk assessment and analysis phases must be disseminated so that the right people are given the right information at the right time to make informed business decisions. MRC can help you determine the appropriate needs of your business, its management, and key constituents, and assists in the design of meaningful communication processes and materials.
Our comprehensive approach addresses the needs of board members, senior managers, risk managers, and other internal and external stakeholders.
In an effort to sustain risk monitoring and to make risk reporting more efficient, many organizations are turning to technology to support their ERM framework. MRC works with you to establish principal business requirements; recommends technology solutions; assists you in the development and implementation of a technology infrastructure; and evaluates various software applications.
Framework Design, Implementation, and Reporting
Instilling a risk-based culture is crucial to realizing the on-going benefits from ERM. MRC works with you to enhance existing processes or create new ones. Activities can include building communication protocols based on a “common language” for discussing risk; enhancing risk governance frameworks; and integrating risk management activity into your control and compliance framework, strategic planning, and business processes. As a follow-up to these activities, we provide you with an implementation roadmap to assist with organizational change.
What is the CIBIL Score?
We learnt last week that the Credit Information Report (CIR) summarizes your payment history of loans and credit cards borrowed from all banks and financial institutions. Based on this credit history, a ‘Credit Score’ is generated. The CIBIL Score is a 3-digit number ranging from 300-900. The closer your score is to 900, the stronger your credit profile.
A Credit Score plays a critical role in the loan and credit card approval process. This is the first screening criterion applied by banks and financial institutions when reviewing your loan application.
In the illustration below, two individuals with Credit Scores of 810 and 620 respectively apply for a home loan. Depending on the credit policy of the bank, it is more likely that the bank will screen the individual with an 810 Credit Score for further evaluation, while the application with the Credit Score of 620 may not be processed.
How does the CIBIL Score affect me as an individual?
A Credit Score is looked upon by lenders to determine your creditworthiness. So whilst a CIR is like a report card, a Credit Score is like the overall rank you get. It analyzes all the information in a CIR and returns a score value which quantifies your credit and financial health. So by looking at your Credit Score, you can get a sense of your financial standing.
A low Credit Score does not mean that your loan will not be sanctioned. In addition to your Credit Score, your CIR, income and existing loan obligations (debt-burden ratio) also play a key role in the evaluation of your loan application. So if you have a low Credit Score, Bank A may not approve your loan while a Bank B may do so, depending on their respective credit policies. It may do so at a higher interest rate.
How does my CIBIL Score impact loan approval?
Today, the CIBIL Score provides lenders the ability to differentiate between those who have honored their obligations responsibly and those who have defaulted. Individuals who have managed their obligations appropriately build a ‘reputational collateral’ with lenders. In turn, this reputational collateral may allow individuals to negotiate better terms with a lender.
It is always advisable to purchase and review your Credit Score and CIR prior to commencing your loan hunt. It helps you:
- To understand what the lender will review while evaluating your application.
- To identify and rectify any discrepancies in your CIR and thereby prevent unwelcome surprises during the loan evaluation process.
If on purchase of your Credit Score, you do not receive a score value- i.e., a number between 300 and 900- but a “NA” or “NH” instead, this may be because:
- You do not have a credit history: you have not availed any credit facility be it loan or credit cards till date.
- You have a credit history but no credit activity or transactions in the last two years.
- You only have add-on credit cards and have no direct credit exposure.
How cibil score can be improved?
If you understand the scoring pattern, you are on right track to follow the next few steps to improve your CIBIL rating score card.
- Clean the Credit Card. …
- Inaccurate Appeals. …
- Use The Oldest Credit Card. …
- Equated Monthly Installment Payments. …
- (i) The 30% rule of credit utilization.
(ii) Enhanced credit limit
- Information on secured card
- Improving rating through Peer-to-Peer Platform
To improve your CIBIL rating score, the above-mentioned points will be greatly beneficial to follow. Scoring high on the CIBIL score is an indicator of an individual’s disciplined expense and repayment behavior and effective management of finance at disposal.