A strategic risk is the probability that a predetermined strategy or set of strategies will completely or partially fail. In other words, the objectives that were set up as part of strategic planning will not be realised. Strategic risks emanate from both the internal and external business environment.
Afregarde Strategies offers strategic risk assessment services that researches on and analyses the effects of the micro, meso and macro environment of targeted strategic achievements.
We research on internal and external risks affecting business strategy including:
Macroeconomic environment risks (PESTEL):
- Political risks
- Economic risks
- Sociological risks
- Technological risks
- Environmental risks
- Legal risks
We will provide a full PESTEL Risk Assessment Report that identifies the key risk drivers in your particular economic sector.
Internal Risk Assessment
Our internal risk assessment process involves, but is not limited to the 7S below:
- Shared values
- Supply Chains
Risk Assessment Reports
We provide various types of Risk Assessment Reports depending on the nature of the risk evaluation project undertaken.
These are produced for strategies, projects and activities that are not yet implemented. The work proactively to identify and quantify the levels of risks involved and how this can be managed.
These are detailed reports on the risk status quo of strategies, projects and activities. They include:
- Identification of Risks
- Sources of Risk
- Quantification of Risks
Why Strategic Risk assessment?
Strategic risk assessment is a growing global trend that integrates Strategic Management and Risk Management to reduce institutional failure. The increasing global environment volatility, uncertainty, complexity and ambiguity, capture in the acronym VUCA has had a negative effect on strategic goal achievement world over. It is no longer safe to assume that the strategy assumptions that we used a few years ago are still applicable. Both the local and international environments are changing, sometimes for the worst. Institutions therefore need to stay abreast with the levels of risk they are exposed to at any given time so that adequate corrective measures can be taken. Some benefits of Strategic Risk Assessment are:
- Reduces the probability of business failures
- Saves and creates jobs
- Enhances Profitability
- Provides detailed and timeous feedback on strategic performance
- Enhances an organisation’s chances of getting funders
- Gives businesses a competitive advantage
- Reduces loan repayment defaults
- Supports viable business growths
- Helps institutions to keep up with compliance requirements
- Proactively prepares institutions for disruptive technology and change
- Empowers organisations in selecting appropriate insurance and risk products
Frequency of Assessment
Frequency of risk assessments depend on business model. However, institutions are encouraged to take an assessment at least once a year, especially before setting up the year’s plans.
For more information on Risk Assessment services please send an email to firstname.lastname@example.org