Knowing your risks is at the heart of every Compliance programme

 

We conduct risk assessments of companies to work out how you can grow your business by taking more risk. We help you identify where to focus your attention so that you don't waste time on things that don't matter.

It can be very difficult to know all the risks you face in your business in each of your local markets.

We have conducted risk assessment projects in over 20 countries, including traditionally high-risk markets like China, Russia, Brazil, and Iran. We know how to identify risks and how to take steps to start managing those risks.

Risk assessments are all about how you can take on more risk.  We are pro-business and believe that understanding risk is the key to taking more risk to drive more value. 

Why The Red Flag Group?

  • Expertise. We are experts at identifying potential risks in your business.  We know business, we are practical and we know how to engage with the business to find the risks.
  • Practical.  We have the business and compliance knowledge and expertise across 194 countries and speak 45 languages in-house. This means that if you engage us to help manage your risk assessment, we are able to understand your business and help you identify key risk areas and plans on how to bridge the gap to manage them effectively.
  • Content. If you are focused on compliance risks, then it would make sense to engage The Compliance Firm®.  Compliance is our business.  We don't just focus on anti-corruption or export controls, we focus on over 23 key risks areas that are relevant to your business.
  • Focus.  Risk assessments can quickly turn into form over substance if you are not careful.  We have a belief that the key focus is to not get paralyzed by all the data and risks and really focus on the top five areas of risk in each functional area or region.  This laser like focus allows us to help clients identify the most important areas on which to focus immediately and leave other less important areas for a later exercise.
  • Substance. We focus on substance over form.  We are not interested in running a bunch of checklists and forms for business managers to fill out to identify risk.  While collecting the information from the business is important, we think that there are better ways of collecting that information than sending our surveys.
  • Pricing. We almost always charge our risk assessments as fixed price and can easily include travel and associated costs into our fees to make things easier.  There is no opportunity for scope creep as we are always very focused on sticking to what we have agreed and giving clients the comfort that they have a fixed spend.

What we can help you with?

We can help you with risks in a particular business, a subsidiary or a joint venture. We can focus on certain known areas, like anti-corruption or other business risks. Our focus is to identify those areas where you might not be covered with your existing programme and to take a different approach to finding risk areas.

Why use an external provider for your risk assessment?

  • We have the scale to be onsite and to support you in challenging locations and in a large number of languages
  • We focus on business risks and compliance risks. We are not only looking at accounting or financial risks but risks that can affect the operation of your business and cause you actual business loss and reputational damage
  • We challenge assumptions, challenge norms and ask tough questions
  • Gain insight into best practices in addressing risks
  • Detailed direction and guidance is given on how to manage these risks

How it works

  1. We work with you to identify which countries, regions or vertical markets would benefit the most from a risk assessment project.
  2. We help you host one or more 'Risk Roundtable' sessions depending on the number of jurisdictions you need to assess risk.
  3. Our team are skilled interviewers. We know what questions to ask to elicit the information you need to identify and determine any potential risk.
  4. The findings are documented and a risk assessment for each location and vertical market is conducted.
  5. We then analyse the risks and tell you where you should be focused.
  6. You can extend your risk assessment by conducting a cultural assessment or a learning programme effectiveness assessment.

An example: Identify channel compliance risks

Some common risk areas in the sales process include:

  • Bribery and anti-corruption in sales deals with government or semi-governmental agencies
  • Export control and illegal sales of restricted products
  • Channel stuffing and revenue recognition issues
  • Licence management abuse
  • Poor discounting and control abuses around discount levels and justification
  • End-user/customer fraud
  • Returned goods and faulty service records
  • Poor controls over channel partner selection and management
  • Sanctions and illegal sales to sanctioned customers
  • Collusion and bid rigging with customers or channel partners
  • Kickbacks to your sales people or customers
  • Appointing unnecessary sub-contractors and installers
  • Grey-market and second-hand trading in used products