THE MANY USES OF THE 52 RISKS® FRAMEWORK
There are many ways the 52 Risks® framework can be used by business owners, managers, investors, and analysts to gain a deeper understanding of the risks that any business may face.
In addition, is a multi-purpose management, analytical, and education tool. The framework can assist students (and others) learn more about specific business risks and risk management practices.
Below are some of the uses for the framework.
Business Owners & Boards – 52 Risks® is a tool that can assist business owners and boards to undertake 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 assist Executives and Managers complete a high-level, enterprise-wide assessment of business risks. The framework can be a very effective tool in bringing 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.
In addition, it can identify areas that may require more substantial deeper dives. These can be an individual risk category or specific clusters of risks.
Financiers – Bankers and other financiers can use the 52 Risks® to undertake (or supplement and validate) credit risk assessments. The framework can inform financiers on areas of risk that may require further 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® to assist with their investment analysis. Analysis using 52 Risks® can also point debt and equity investors to new and/or 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 undertaking a post-event review of ‘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.