Corporate Risk management is a vastly important function that impacts the growth of any business in every economic cycle. The importance of Risk management in Singapore assumes even more significance since companies here are highly exposed to global trade.
The risk management process begins with sound business risk assessment leading to establishing reliable risk management controls. Risk mitigation strategies typically cover the following key considerations:
Credit Risk Management in the digital age is a complex affair. Managing Credit Risks requires careful consideration of various factors, multi-disciplinary skills and comprehensive information such as:
Technology advancement with AI, Blockchain, Fintech movement and other innovative business models and the vast array of data and sources adds to the challenges in effective Risks Management. Acquiring and effective use of quality data and information is critical to derive insights to survive and thrive in the volatile, uncertain, complex and ambiguous global business environment.
Inability to access quality data when it is needed reduces competitive edge and affects customer satisfaction.Legacy system and low automation
Human errors, disparate data sources and manual processes can create a disconnect with the customers’ needs.Technology Mismatch
Information in traditional form prevents the efficient adoption of technology-driven credit risk management solutions and analytics, especially for Fintech disruptors.Increasing complexity in fraudulent business practices
Fraudsters are increasingly skilled and technology-enabled. Historical data and inability to monitor changes is the weak link to fraud prevention.
There is still no substitute to knowing your customer. This is a fundamental best practice as it provides a strong basis for all subsequent actions in the credit risk management process. To get the best results you need relevant, precise, and well-timed information.Analyse financial performance
General practice is a 3 to 5 years financial assessment of the company to understand any financial stress or business growth opportunities.Analyze non-financial risks
Often the most neglected area in Credit Risk Management is the domain of non-financial risks. It is essential to develop skills to evaluate those risks, with reliable data, in the following four broad areas :
We offer very user-friendly database solutions covering all Singapore Registered companies and information from global official data sources. Our customers use these reports and customise data services for Business Verification, Credit Assessment, and Business Performance Evaluation.
Information is the most critical factor in managing Corporate Credit Risks. Excellent breadth and depth of information allows you to derive actionable insights for effective decision making. Even in a situation where data is insufficient, any available data or information can be used to mitigate credit risks if used effectively.
For any business, procurement and risk management are closely linked. A sound Supply Chain risk assessment directly impacts the success of your manufacturing and operations activities and business growth
A judicious third-party vendor risk management strategy is important for the following reasons:
Over the years the following best practices of MNCs and large organizations that manage a large pool of vendors and suppliers are being adopted by smaller business to manage cost and increase supplier reliability.
We offer very user-friendly database solutions covering all Singapore Registered companies and information from global official data sources. Our customers use our reports and customise data services for Business Verification, Credit Assessment, and Business Performance Evaluation.
Supplier Risks management is growing importance, especially as part of compliance policies. Checks on suppliers should be carried out during Vendor registration, verification and onboarding.