In the previous part, I talked about the "first" part of the following content, and I will continue to finish it today.
When it comes to risk, it must cover several dimensions.
First, the probability of risk occurrence and the possible quantitative scale of funds;
Second, risk is the degree of impact of prevention and detection before the occurrence point of occurrence on the occurrence of risk;
Third, how to reduce the probability of future risks through the establishment of a risk management system.
We're just talking about the "first" stuff today:
Namely: "First,The probability of the risk occurring and the possible quantitative size of the funds;”
Second, risk is the degree of impact of prevention and detection before the occurrence point of occurrence on the occurrence of risk;
Since it has been said, when many risks are discovered, it is too late to regret it!So can we avoid the risk by observing and intervening in advance?The answer is no.
However, if the following measures are implemented, the time when the risk is detected is likely to be earlier.
For example: 1) For a project that has passed the due diligence investigation, although the project has been approved, it does not necessarily mean that the company's management risk does not exist, then the fund co-management account at this stage may be a good management tool at this stage;
2) For enterprises that are optimistic about the project, but through due diligence, it is found that there are problems in the management and operation links, the financing party shall be subject to credit enhancement measures such as VAM agreements, and even the allocation of funds shall be implemented in stages, that is, it is not a one-time payment of funds to the financing party's account;
3) For the review of the project, can it be dismantled into the continuous delivery stage of the progress milestone, and then establish the mode of the project team system entry, and the progress of each stage is completed, and the mode of continuing to apply for the second phase of funds;
4) Establish a mechanism in advance, if a major risk is discovered, the funder can initiate the Party A model, or the financing project trusteeship model, or even more severely, if the counter-guarantee measures corresponding to the financing party's collateral assets are activated.
Third, how to reduce the probability of future risks through the establishment of a risk management system.
If an enterprise has established a risk management strategy based on the current stage of development, that is, a management system, then after the rules are in place, and then the rules-based training and tests such as fire drills are included, when all this is passed, the grid of risk management has been drawn, and the rest is for everyone to follow the grid step by step.
And the so-called lattice, only need to improve two aspects of content:
1) The problem of the "flexibility" of the lattice;
By "flexibility" we mean that the rules should be "situationally different". Avoid avoiding:
Other people's "grids" (rules) are only applicable to other people's development backgrounds and development stages, and may not necessarily be applicable to their own scenarios, so it is necessary to put an end to the doctrine of taking it, and it is okay to take it, but it needs to be transformed.
The second "flexibility" is that rules are just rules, and you can't implement self-centeredness in order to implement rules and internal control, and frequently step on the brakes to hinder the process of business in order to fulfill your own responsibilities, or you can't force the business department to Liangshan in order to do internal control.
The third "flexibility" is that the rule-makers and implementers should understand the principle of curing diseases and saving lives, rather than the mentality of punishment.
2) the "oversight" of lattice implementation;
After the content of "(1)" above, how to supervise whether the actions of the people walking the lattice are in place?An Overseer is needed at this time, but there may be two dilemmas for an Overseer.
The first dilemma is the increase in additional costs, and the second dilemma is the subjective view that may exist. So what to do?Efficiency should be prioritized, cost should be controlled, and supervision should be objective, so difficult!
If I say that the implementation of any process and business operation, every step costs money and costs manpower, do you agree?If I go further, such implementations can be reflected in numbers, you should understand it too, right?What if I said at the end that we use the operating data, including financial data, to model the health of the project by returning to the financial management data to model the operation process of the project?Is it objective and avoids the additional cost of manual operation?
Speaking of which, back to the final summary. No matter what institution or individual, you are responsible for your own funds, whether you are a funder or a financier. And this responsibility seems to be only two words, but if all the above content is in place, what do you think of the dimensions and framework of this management?
See you in the next part!