The 52 Risks® framework is a multi-purpose management, analytical and education tool. It has many uses to assist business owners, managers, investors, and analysts gain a deeper understanding of the risks that any business may face.
In addition, the framework can assist students (and others) learn more about specific business risks and risk management practices.
Business Owners & Boards – 52 Risks® is a tool that can assist business owners and boards with a high level, enterprise-wide assessment of business risks. It can be used to test the robustness of the business and its strategies, to develop future strategies and business plans and stay abreast of emerging risks on an ongoing basis.
Executives and Risk Managers – 52 Risks® can likewise ass with a high level, enterprise-wide assessment of business risks. Executives and Risk Managers can use the tool to bring together a top-down assessment and a granular bottom-up risk assessment. The framework can also be used periodically to identify strategic and emerging risks. The framework is also able to identify areas that may require more substantial ‘deep dives’ – these can an individual risk category or specific clusters of risks.
Financiers – Financiers can use the 52 Risks® framework to undertake (or supplement and validate) credit risk assessments on existing and future borrowers. The framework can inform financiers on areas of risk that may require furthered interrogation during the credit due diligence process. The use of the framework can strengthen and streamline the end to end credit assessment process for both the financier and the borrower.
Debt & Equity Investors – Similar to financiers, debt and equity investors can use the 52 Risks® framework to complete (or supplement and validate) the risk component of the investment analysis. Analysis using 52 Risks® can also point debt and equity investors to new and emerging risks that may not have previously been considered.
Business Media. 52 Risks® can provide journalists and analysts with a basis to understand the risk factors facing business and to identify areas for further research and analysis. The framework is also helpful in articulating ‘what went wrong’ when a business encounters risk issues and/or financial distress.
Students – 52 Risks® is an ideal educational tool for students, educators and others wanting to gain a better understanding of risk management practices and common business risks.