| | | | | |
| | | | | An example is bad debt. This is a risk to most |
| Every business is a risk and every business has its | | | | businesses but can be managed by specialist Credit |
| own risks - fortunately these risks can be managed. | | | | Risk Management companies of which GCS is one |
| The risks can be reduced to zero but then the | | | | |
| company would not be manageable so the risk | | | | The risk is accessed by careful credit vetting by the |
| management process has to be sympathetic with the | | | | company and then a system put in place to act |
| company’s overall goals and objectives, thus risk | | | | immediately any deviation from the normal credit |
| management is a compromise between no risk and | | | | rules. |
| convenience. | | | | |
| | | | | If the credit risk looks as if it will become a debt risk |
| | | | | the Risk Management company will have preordained |
| As a company expands, so does the risk and the | | | | rules and procedures to recover any debt thus |
| management of that risk must grow as the company | | | | continuing their task of managing risk as it changes. |
| expands. | | | | |
| | | | | Of course risk comes in all shapes and sizes from |
| Risks have to be identified, studied and reduced to a | | | | health and safety to financial to HR. Risk |
| minimum bearing in mind convenience of operation. As | | | | Management services usually specialise in one |
| an example there is always a risk of break in. To | | | | particular field which may cover a number of specific |
| overcome this you could build an all round 20ft wall | | | | risks. GCS for example will cover a number of risks |
| without doors but then, apart from cost, you would | | | | by provision of the services they offer in: |
| not be able to enter. | | | | - Credit report |
| | | | | - Debt collection |
| So you build a door into the wall! You have now | | | | - Debt purchase |
| taken a bigger risk but improved convenience, but | | | | - Business information |
| you have only put in one door, no windows so you | | | | - Investigation |
| are already managing the risk of break in. | | | | - Skip Tracing |
| | | | | - Market Intelligence |
| The more complex the business becomes, the more | | | | - Field services |
| complex risks can become. Businesses have to | | | | - Risk management |
| concentrate on their core business and do not | | | | - Due diligence and |
| necessarily have the time or expertise to properly | | | | - Security services |
| manage some risks. | | | | These services or combination of services manage a |
| | | | | great many risk including all the major financial risks |
| As a consequence we have seen the increase in the | | | | and enables the company to know that their risks |
| number of Risk Management companies to conduct | | | | are being managed for them whilst they concentrate |
| audits and offer advice to companies; indeed often | | | | on expanding the business they know best – |
| the Risk Management company will take over the | | | | their own, just as GCS know their business – |
| management of defined areas of risk from a client. | | | | Risk!! |