Posted by – August 24, 2011
E-business risk is everywhere and it can severely damage your company reputation. But in this day and age not using internet technology would leave you falling behind the competition. So how do you get by and manage the potential e-business risks?
Image courtesy of espensorvik
In the most basic terms, e-business is using internet technology for your business. By using this, companies can reach out to more customers, speed up their services and create a better product. It’s an ever changing part of the industry, but learning how to use it isn’t the hardest part of e-business. One of the toughest aspects is keeping up with the progression. One of the e-business risks is being left behind, but by staying one step ahead of the industry you can use it to your advantage. Some of the examples of e-business are:
Posted by – July 11, 2011
For those who feel overwhelmed by identifying risks and crunching the data, there is help for you. A risk matrix is a project management tool that evaluates probable risks in terms of likelihood. It comes in the form of a grid which makes it easy to visually identify risks associated with an investment or business endeavour.
Are you an investor looking for an easier way to identify risk? At Winflow Financial, our Risk Tool™ does all the necessary analysis for you. Just register on the site, upload a .csv file statement and sit back and wait for the risk results to be displayed.
Consider the following when using a risk matrix:
- You should use a risk matrix if your having trouble identifying risks and need data so you can make a decision.
- Know your own appetite for risk. This will help you determine if an investment is too risky for your liking.
- A risk matrix is also ideal for making quick decisions. If you need to make a quick investment decision, using a risk matrix is your best option.
- If you take on an investment with too little risk, you could be wasting money. If you take on an investment with too much risk, you could lose money.
Posted by – June 30, 2011
Creating an investment portfolio is a tough task, especially with the market being so temperamental. So many companies are putting a bigger emphasis on risk control. One in every 10 companies have spent over $250 million on enhancing their risk management strategies in the last two years.
This information comes from a report completed by Accenture, who were told that a wide selection of companies saw risk control as a higher priority than 2 years ago. A large number of these companies also stated that over the next two years spending would be increased to make their risk management far superior.
This change has seen 45% of companies employing a chief risk officer. This is up from the 33% of companies in 2009. One of the reasons for these adjustments is the evolving market. Where risk management was once seen as a dull area, it has now become a serious matter that needs to be addressed. And it’s not only for the short term; many companies want their risk management strategies to be for completing long term goals.
Around 80% of the companies said that managing risk helped with volatility. And almost half said that creating a good risk management program helped with the stability of both their company and the market in general.
Posted by – June 27, 2011
Also known as debt equity products, hybrid investments are great for diversifying your investment portfolio. The hybrid products include favored shares and both short/long term convertible bonds. But what exactly is a hybrid investment?
This type of investment is an asset that links equity and debt features. It allows companies to protect themselves against financial risks and also helps with creating a risk management plan. A company may issue these hybrid products if senior officials believe that economic conditions aren’t appropriate for traditional bonds and stock products.
The hybrid investments are vital in modern economic transactions and creating a more diverse investment portfolio. The investors that purchase these products are hoping to receive periodic fixed-interest payments and to make profits when the financial market share prices rise.
The most popular hybrid investments are the convertible bonds and preferred stocks. Someone who buys these preferred stocks, who is also titled as a preferred stockholder, will receive a dividend payment on a regular basis. When share values rise on securities exchanges the stockholder also gains. On the other hand, the convertible bondholder will receive periodic interest payments. They can also exchange their bonds for equity shares.
For more information on investments speak to the consultants at Winflow Financial Group.
Posted by – June 22, 2011
Financial risk management can be a tough part of the industry for beginners. So anything that helps will be a useful asset. But financial risk management software shouldn’t only be used by beginners to the industry. It can be used by the most experienced asset managers. Here are a few software ideas for 2011.
Resolution Financial Software
The first is Resolution, a company that works with both financial instruments and derivative pricing solutions. Firstly they have the M2M, which is an independent web-based portfolio service, which provides evaluations and cash flow reports. But in addition to this they also have ResolutionPro, a financial analytics library. You can sign up for a free trial which lasts five days.
Another company offering software is CreditPoint Software. They are a constantly advancing company and value the importance of effective risk management. They offer a commercial credit management solution and help with the proficiency throughout your organization. Their features include automated workflow and a fast implementation process.
Isis Financial Systems
The third company dealing with risk management solutions and software is Isis Financial Systems. They offer’ flexible solutions for sophisticated portfolio management’ and their services branch out into a number of sectors. These include equities, fixed income and mutual/hedge funds. The company was founded in 2001 and has managed over $100B in assets.
Posted by – June 22, 2011
In recent years the Canadian dollar has had an unpredictable value. The profitability of importers and exporters has taken a substantial hit due to the loonie fluctuations. And the impact of the Canadian dollar on business profits can be referred to as foreign exchange risk management.
A wide number of trends in the industry are forcing people to consider the foreign exchange risk management strategies, notably looking into globalization and market independence. Globalization should come as no surprise. In the past, few companies had the ability to open its doors to the rest of the world. Though today a vast number are completing business internationally and also beginning to look into free trade between Canada, the U.S and Mexico. Since the 90’s Canadian business has become increasingly interested in international currency trading.
Another trend is market independence. This is down to currency markets being able to generate chain reactions which can affect the value of the Canadian dollar. An example is the rising oil prices. This is caused by uncertainty concerning the US dollar. And since Canada holds little influence concerning a level of confidence involving the main international player on the monetary market. It’s wise for the Canadian companies to take further control of the foreign exchange risk.
Posted by – June 21, 2011
The global recession might not be as bad as it was a few years ago, but it still lingers. The threat of losing money is always there, and always will be. But the possibility of another downturn scares investors and sometimes the financial risk is too much. So how do you avoid this risk?
To begin with you have risk avoidance. This is simply not making the move on a particular investment. For example, not buying a business to avoid the complications that come with it, or the potential losses if the company fails. But this carries its own problems. Avoiding risk may see you lose money as you don’t make the investment and lose out on potential profits. Not only will this lose you money, but may also beneficial for a competing investor.
To make a deal and still avoid the major risk you will have to work on risk reduction. This will reduce the severity of the loss, or put actions into place to stop the loss from occurring. This is also known as ‘optimization’ and is a balance between negative risk and commercial benefit.
In order to organize the problems and be aware of risk many companies choose to create a risk management plan. For more information on risk management contact the Winflow Financial Group.
Posted by – June 16, 2011
As workers’ comp rates rise, your small business may be feeling some of the strain. Premiums for workers comp are affected by a number of different factors, some of which you can control to maintain costs. Costs of workers’ comp varies depending on gepgraphic location and the type of industry your small business is in. If you’re looking to cut back your workers’ comp costs, consider the following:
- Though it may be tempting not to get workers’ comp at all, it is necessary. If an employee were injured on the job you would have to cover their expenses out-of-pocket.
- Use job classification codes correctly. Different positions within your company have different levels of risk assoicated with them. For example, a person who workers at desk is less likely to get injured than someone who works construction. If you misrepresent a job position you could lose your insurance or end up paying higher premiums than necessary.
- Perform safety checks and emphasize safe work practices. The best way to avoid high premiums is preventing accidents. Make sure your small business is on top of risk management.
- Put in place programs that allow injured workers to return back to work faster. The longer an employee is on disability, the higher your costs can get.
For your small business needs, contact the Winflow Financial Group.
Posted by – June 13, 2011
Risk analysis is often separated into two different styles, quantitative and qualitative. And to fully understand risk assessment you will need to know the details on both forms. They can be used simultaneously or in a specific order, even with a period of time in between.
Quantitative Risk Analysis
This form of risk analysis focuses on the safety measures which are already in place and protect against existing threats. By using this approach the company can assess the measures already in place that have succeeded helping with risk management. It is a very precise method and makes it favorable to a wide selection of management teams. It can also be evaluated clearly as it comes in percentages and probability charts.
Qualitative Risk Analysis
The use of qualitative risk analysis is to obtain safety and increase the alertness of team members, management and other vulnerable parties. This approach is designed to identify issues that have the potential to become a problem at a later date. It will also give a detailed analysis of resources which are more prone to such risks. This will eliminate future problems and strengthen the weaker aspects of the company.
Using both these methods of risk analysis will help your company become a more profitable and successful organization. For more questions on risk analysis contact Winflow Financial Group.