Captiva Africa LLC

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Risk

Risk management is the identification, quantification and proactive management of key risks that face an organization.

Given today’s unstable economic environments, every business needs to evaluate its risk management capabilities. Our expertise in risk management dovetails with Captiva’s capabilities in such areas as business strategy, planning and advising on growth and innovation. In this case we work closely with senior expert advisers—external collaborators who bring on board years of industry, regulatory, and academic experience.

Our recent work has involved supporting clients in a variety of industries in East Africa including retail, FMCGS, transport, water, sanitation and clean energy in identifying and managing operational, financial, strategic and reputational risks.

From our experience, most SMEs are born out of entrepreneurial passion; limited funding and with business systems that are often heterogeneous and independent. The dynamic and ad hoc development of these SMEs means that risk management issues and processes are not addressed at the start-up phase of the businesses. Risk management frameworks and processes tend to be at the very least rudimentary if not non-existent. The businesses, generally, place little emphasis on enterprise risk management.

At Captiva Africa we work with SME executives to assist them engage, understand and implement basic risk management processes including technical and organizational measures. Without such measures the SMEs may be severely impacted by various strategic, operational and financial risks which may in turn lead to business failure.

We help businesses decide how to initiate and carry out risk management- and where they have adequate resources we provide guidelines for performing a self-assessment of key risks to the businesses. For this purpose we offer a simple risk assessment method that leads to a quick and extensive identification and mitigation of the key risks.

Our team of experts appreciates that most SMEs have certain common characteristics. First they tend to have pancake organizational structures where people are expected to multi-task. This exposes members of staff to the entire variety of processes and procedures used across the company.

Our approach to risk management for SMEs comprises three key pillars:

Understanding Risk

We help SME executives gain an understanding of the background and rationale for risk management. We ensure that key managers appreciate the structure of the risk assessment process and bottom-line implications for the businesses if the key risks are not adequately anticipated and addressed.

Business Processes

We help clients take into account risk management into their business planning processes as well as their day to day operations and decision making. In addition we encourage the executives to understand that optimal structural and organizational choices are critical for effective risk management. Whilst risk management is the responsibility of all in the organization; it is important that the roles and responsibilities of the risk functions where available are clearly defined.

Risk Appetite

Captiva Business Advisors are aware that clients will have different appetites for risk based on their unique financial and strategic circumstances. We therefore help clients ensure that their risk management approaches are in line with their business strategy and risk-taking capabilities.