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Fortifying your Digital Assets
Resolution Consulting, LLC: Fortifying Your Digital Assets – A Cybersecurity Imperative for Mid-Sized Businesses
Welcome to Resolution Consulting, LLC's latest insights! In today's interconnected world, the digital security of your business bank accounts and private holdings is paramount. Mid-sized businesses, often seen as a sweet spot by cybercriminals – large enough to have valuable assets but sometimes with fewer dedicated security resources than enterprises – are increasingly targeted. This newsletter sheds light on current threats and actionable strategies to protect your financial and digital future.
The Main Story: Safeguarding Your Business Bank Accounts and Private Digital Holdings
Protecting your financial lifeline and valuable digital assets is non-negotiable. Cybercriminals are constantly evolving their tactics, from sophisticated phishing schemes to direct attacks on financial systems. For businesses, this means implementing robust measures beyond basic antivirus software.
Key Strategies for Financial Security:
Multi-Factor Authentication (MFA) is Non-Negotiable: For all bank accounts, investment platforms, and critical business applications, enable MFA. This adds a crucial layer of security, requiring more than just a password to gain access.
Strong Internal Controls for Transactions: Implement multi-person approval processes for all financial transfers, especially those above a certain threshold. Verify unusual payment requests directly via a pre-established, trusted phone number, not relying on email addresses from the request itself.
Segregate Financial Systems: Where possible, separate computers or networks used for financial transactions from general Browse and email. This limits exposure to malware.
Regular Account Monitoring: Actively monitor bank accounts and credit lines for suspicious activity. Set up alerts for large transactions or unusual logins.
Employee Education: Your employees are your strongest or weakest link. Regular, mandatory training on identifying phishing attempts, recognizing social engineering tactics, and adhering to strong password policies is vital. Reinforce the dangers of clicking on suspicious links or opening unsolicited attachments.
Secure Backup Strategy: Regularly back up all critical business data – financial records, client information, intellectual property – to secure, offsite, and/or cloud-based locations. Ensure these backups are encrypted and regularly tested for restorability.
Protecting Your Digital Website and Passwords:
Your website is often the public face of your business, and compromised passwords are a leading cause of breaches.
Website Security Fundamentals:
HTTPS Everywhere: Ensure your website uses SSL/TLS encryption (HTTPS). This protects data in transit between your website and users.
Regular Software Updates: Keep your Content Management System (CMS), plugins, themes, and server software updated. Unpatched vulnerabilities are a common entry point for attackers.
Web Application Firewall (WAF): Implement a WAF to filter and monitor HTTP traffic between a web application and the Internet, protecting against common web exploits.
Password Best Practices (Applies to all digital assets):
Length and Complexity: Encourage long, unique passphrases (e.g., "blue-ocean-cloud-castle!") instead of short, complex, hard-to-remember passwords.
Unique Passwords Per Account: Never reuse passwords across different accounts. A breach of one account shouldn't compromise others.
Password Managers: Implement and encourage the use of reputable business-grade password managers (e.g., LastPass Business, Dashlane Business, 1Password Business, Bitwarden). These tools generate strong, unique passwords and store them securely, simplifying management while enhancing security.
No Storing Passwords in Browsers or Plain Text: Discourage employees from saving passwords in web browsers or in easily accessible files.
Resources for Businesses Looking to Protect Their Digital Assets:
CISA (Cybersecurity and Infrastructure Security Agency): CISA offers a wealth of free resources, guidance, and tools specifically for small and medium businesses. Their "Cyber Guidance for Small Businesses" and "Stop Ransomware" initiatives are excellent starting points.
Global Cyber Alliance (GCA) Cybersecurity Toolkit for Small Business: Sponsored by Mastercard, this toolkit provides free tools and actionable steps to improve cybersecurity.
NIST (National Institute of Standards and Technology) Small Business Cybersecurity Corner: Offers guidelines and resources aligned with best practices.
https://www.nist.gov/itl/smallbusinesscyber (Search for this section on NIST's site, as the direct URL can change.)
Cybersecurity Companies for Mid-Size Businesses (Affordable & Effective):
Many reputable cybersecurity firms offer tailored solutions that provide enterprise-grade protection without an exorbitant price tag. When evaluating, look for providers offering a suite of services, strong threat detection, and good support.
Endpoint Detection and Response (EDR) / Extended Detection and Response (XDR) Solutions: These go beyond traditional antivirus to detect and respond to advanced threats.
Bitdefender GravityZone Business Security: Often highly rated for its comprehensive protection suite for SMBs, including antivirus, firewall, and threat detection.
Sophos Intercept X: Known for its next-gen, AI-driven behavioral analysis and advanced threat detection, suitable for tech-forward SMBs.
CrowdStrike Falcon Go: A cloud-native, AI-powered platform ideal for growing SMBs looking for elite threat detection and endpoint protection.
SentinelOne Small Business: Provides strong AI-powered endpoint security.
Managed Security Service Providers (MSSPs): For businesses without dedicated in-house IT security teams, MSSPs offer outsourced cybersecurity expertise. They can manage your security infrastructure, provide 24/7 monitoring, incident response, and more, effectively acting as your virtual security team. Consider local or regional MSSPs that cater specifically to mid-sized businesses, as they often offer more personalized and cost-effective services.
Email Security Providers: Given that phishing and Business Email Compromise (BEC) are top threats, dedicated email security solutions are crucial.
Mimecast: Offers robust email security, archiving, and continuity solutions designed for SMBs, closing gaps often present in standard email platforms like Microsoft 365.
Proofpoint Essentials: Another strong contender for protecting against email-borne threats.
Tip: When engaging with cybersecurity companies, prioritize those that offer a free consultation or a trial period. Ask for case studies with businesses similar to yours.
Latest Cybersecurity Risks to Mid-Size Businesses (US, Middle East, North Africa, East Asia)
While specific threats can vary by region and industry, several overarching risks continue to dominate the cybersecurity landscape for mid-sized businesses globally:
1. Ransomware (Global & Persistent): Still the most financially devastating threat. Attackers encrypt your data and demand payment, often with data exfiltration (stealing data before encryption) occurring first. Mid-sized businesses are prime targets due to perceived weaker defenses than large enterprises. The use of AI in automating malware creation makes attacks faster and more adaptable.
US Specific: Continued high volume, with ransomware groups often using sophisticated social engineering and supply chain attacks to gain initial access.
Middle East/North Africa: Geopolitical tensions in the Middle East often translate into state-sponsored or affiliated groups engaging in destructive attacks (sometimes disguised as ransomware) targeting critical infrastructure, financial institutions, and government entities. Financial institutions in the Middle East, in particular, face a surge in ransomware attacks.
East Asia: Ransomware attacks are surging, with critical infrastructure and financial sectors being key targets. The region's rapid digitalization and reliance on cloud services expose vulnerabilities.
2. Business Email Compromise (BEC) & AI-Powered Phishing (Global & Evolving): These remain the top methods for initial compromise. AI is increasingly being used by attackers to create more convincing, personalized, and grammatically perfect phishing emails (including deepfake technology for impersonation), making them harder to detect. This leads to fraudulent wire transfers, credential theft, and data breaches.
Global: AI-enhanced BEC campaigns enable attackers to scale their efforts and craft highly persuasive messages. Employees are often the entry point, emphasizing the need for continuous, realistic training.
3. Supply Chain & Third-Party Vulnerabilities (Global & Growing): Cybercriminals are increasingly targeting smaller, less secure vendors or partners within a larger company's supply chain to gain access to the primary target. If your mid-sized business is a supplier to larger entities, you become an attractive target. This highlights the importance of robust vendor risk management.
4. Data Breaches & Data Exfiltration (Global & Costly): The theft of sensitive data (customer information, intellectual property, financial records) leads to severe financial penalties, reputational damage, and legal liabilities. Organizations globally are focusing on data encryption and strict access controls.
5. Outdated Software & Unpatched Vulnerabilities (Global & Common): Many mid-sized businesses struggle to keep all software, operating systems, and applications fully updated. Hackers actively scan for known vulnerabilities in older versions to gain easy access. This remains a significant attack vector.
6. Insider Threats & Human Error (Global & Often Overlooked): Whether intentional (disgruntled employees) or accidental (clicking a malicious link, misconfiguring a system), insider threats can cause significant damage. Lack of proper access controls and monitoring exacerbates this risk.
Next Steps for Your Business:
At Resolution Consulting, LLC, we understand the unique challenges mid-sized businesses face in cybersecurity. We can help you assess your current posture, identify vulnerabilities, and implement cost-effective, tailored solutions to protect your bank accounts, digital holdings, and overall business operations.
Reach out to us today at https://www.resconsultingllc.com/contact-us/ for a personalized consultation.
Financial Risk Management in the Age of AI
1. AI Reshaping the Risk Landscape
Automation & Efficiency Gains
Major banks like Goldman Sachs, JPMorgan, Morgan Stanley, and Citi are embedding AI—especially large language models (LLMs)—to streamline operations: from drafting IPO documents and summarizing earnings reports to automating cash-flow analysis (marketwatch.com). Tools like Bloomberg's terminal‐based research assistants further enhance productivity by providing instant, attributed insights from filings and earnings calls (a-teaminsight.com).
Labor & Competency Shift
Bloomberg Intelligence projects up to 200,000 Wall Street jobs may be eliminated over five years due to automation (wsj.com). Roles focused on client relationships, strategic thinking, and deep sector knowledge will be key, while AI literacy becomes critical for talent retention (marketwatch.com).
2. Types of AI-Induced Risks
Model & “Black‑Box” Risks
Regulators highlight opaque AI systems lacking transparency (“black‑box” risk), complicating traceability and validation (reuters.com). Firms are now required to deepen monitoring, implement explainability (XAI), and maintain stronger documentation .
Security & Fraud Threats
Finra warns that generative AI is enabling more convincing scams—deepfake voice and video impersonations, synthetic IDs, and phishing attacks. Financial fraud linked to AI could cost firms up to $40 billion by 2027 (wsj.com).
Systemic & Procyclicality Risks
Academic research (e.g., Jon Danielsson) warns that AI can amplify market procyclicality and systemic risk. Overreliance on similar data-driven algorithms across firms may trigger synchronized bubbles or flash crashes (en.wikipedia.org).
3. Frameworks & Best Practices
a. Risk Taxonomy & Guardrails
Bloomberg researchers developed a domain‑specific taxonomy targeting AI content risks in finance—such as hallucinations, bias, and safety mismatches—with detection methods revealing that existing guardrails often fall short (assets.bbhub.io).
b. Model Risk Management
A March 2025 paper outlines enhancements for validating generative AI models, emphasizing mitigation of hallucination and toxicity risks via rigorous testing, human oversight, and model governance frameworks (arxiv.org).
c. Explainability & Oversight
Financial firms are shifting from black‑box models to transparent, glass‑box architectures. They’re requiring traceability of AI-based decisions, enabling regulatory scrutiny of credit scoring, risk-weighting, and compliance outputs (reuters.com).
4. Regulatory Landscape & Governance
Proactive Oversight by Regulators
The U.S. Financial Stability Oversight Council now includes AI risk as a systemic concern—highlighting cyber threats, model opacity, and urging firms to build monitoring capacity (reuters.com). Europe and the UK are enacting robust AI regulations, with boards integrating AI governance into compliance frameworks .
Corporate Governance Actions
Boards at public companies are undertaking briefings, scenario‑planning, and embedding AI oversight into their charters—balancing innovation with liability and data-privacy considerations .
5. Technological Solutions & Market Players
Bloomberg MARS Climate & FIGI: Tools integrating AI for climate risk analysis and universal financial instrument ID cataloging—enabling stress tests and risk transparency (esgdive.com).
Numerix Oneview & Front‑to‑Risk Platforms: Specialized AI-powered frameworks for real-time scenario modeling, derivatives analytics, and stress testing (en.wikipedia.org).
Compliance AI (Behavox, Global Relay, SteelEye): Systems trained on industry slang, voice transcription, emojis, and jargon to detect insider threats, fraud, and misconduct (wsj.com).
6. Strategic Best Practices for Firms
The following are some strategic recommendations for firms looking to mitigate long term Risk as AI becomes smarter and more capable.
Model Governance: Adopt formal AI risk taxonomies, independent validation, and red‑teaming.
Explainability: Prioritize interpretable and auditable AI models.
Cybersecurity: Harden systems against AI-driven deepfakes, phishing, and synthetic identity schemes.
Human-in-the-loop: Implement oversight at key AI decision points.
Board Oversight: Equip boards with AI literacy, policy frameworks, and stress-testing directives.
Holistic Monitoring: Integrate mental models for operational, cyber, compliance, and climate-related risks.
7. Conclusion
Financial institutions embracing AI can unlock unmatched efficiency and risk detection. However, they must adopt a structured approach to governance, transparency, and regulatory-grappling to avoid model failures, fraud exploitation, and systemic fragility. With strategic investment in AI-aware controls, explainable systems, and board‑level vigilance, firms can navigate the AI frontier—balancing innovation with resilience.
Using Tools to Build and Maintain Connection with Your Clients
I just finished generating and distributing another newsletter for my clients, and as Mailchimp has evolved and improved its operating suite, I figured I would discuss some of its virtue for client support and retention here.
In today’s rapidly evolving digital landscape, maintaining a robust client base and fostering long-term business relationships are pivotal for success. One of the most effective tools to achieve this is Mailchimp, a comprehensive marketing platform designed to enhance communication and engagement with clients. Here's an exploration of the benefits of using Mailchimp to build and maintain your client base, company contacts, and long-term business relationships.
1. Streamlined Communication and Engagement
Mailchimp offers a centralized platform that allows businesses to communicate effectively with their audience. With customizable email templates and automated campaigns, businesses can send targeted messages that resonate with specific segments of their audience. This ensures that communication remains relevant and personalized, which is crucial for building strong client relationships.
2. Comprehensive Audience Insights
Understanding client behavior and preferences is key to maintaining effective relationships. Mailchimp provides detailed analytics and reporting tools that offer insights into how audiences interact with your emails. These insights enable businesses to tailor their marketing strategies to meet the unique needs of their clients, thereby strengthening relationships and increasing customer satisfaction.
3. Efficient Contact Management
Mailchimp’s contact management features allow businesses to organize and segment their audience effectively. By categorizing clients based on demographics, purchasing behavior, and engagement levels, businesses can create personalized marketing strategies that cater to different client needs. This segmentation is essential for maintaining relevant communication and nurturing long-term relationships.
4. Automation for Consistent Engagement
With Mailchimp’s automation capabilities, businesses can maintain consistent engagement without the need for constant manual intervention. Automated workflows, such as welcome sequences for new subscribers or re-engagement campaigns for inactive clients, ensure that communication remains timely and relevant. This automation not only saves time but also enhances client satisfaction by providing a seamless and personalized experience.
5. Enhanced Brand Consistency
Mailchimp enables businesses to maintain brand consistency across all communications. With customizable email templates and design tools, businesses can ensure that every message aligns with their brand identity. Consistent branding helps in building trust and recognition among clients, which is crucial for long-term relationship building.
6. Integration Capabilities
Mailchimp can be integrated with various other platforms and tools, such as CRM systems, social media platforms, and e-commerce solutions. This integration capability allows businesses to streamline their operations and have a unified approach to managing client relationships. It ensures that all client interactions are captured and leveraged to improve marketing strategies and client engagement.
7. Cost-Effectiveness
For small to medium-sized businesses, budget constraints can be a significant challenge. Mailchimp offers various pricing plans, including a free tier, making it accessible for businesses of all sizes. The platform’s cost-effectiveness ensures that businesses can maintain professional communication and client relationship management without incurring prohibitive costs.
Conclusion
Mailchimp is an invaluable tool for businesses looking to build and sustain their client base and long-term business relationships. Its comprehensive suite of features, including streamlined communication, audience insights, efficient contact management, automation, and integration capabilities, make it an essential component of any modern marketing strategy. By leveraging Mailchimp, businesses can enhance their engagement strategies, foster meaningful client relationships, and ultimately drive long-term success.
Resolution Consulting at Nashville AI Week
Join Resolution Consulting at Nashville AI Week!
Embrace the Future at Nashville AI Week 2025
Nashville AI Week 2025 is set to be a cornerstone event in the AI landscape, scheduled to take place at the renowned Nashville City Winery from May 15-16. This prestigious gathering, powered by the Enterprise Technology Association, is designed to bring together leaders, innovators, and enthusiasts from across the globe to explore the transformative potential of Artificial Intelligence.
Event Highlights:
AI Leadership Summit: Engage with trailblazers who are at the forefront of AI innovation and explore how AI is reshaping industries and enhancing capabilities across sectors.
Women in AI Breakfast: A dedicated session aimed at promoting diversity and inclusion within the tech industry, empowering women who are making significant strides in AI.
Innovation Showcase: Discover the latest breakthroughs in AI technology that are set to define the next era of digital transformation.
Educational Workshops: Participate in hands-on sessions that provide practical insights and advanced skills training from top industry experts.
Networking Opportunities: With numerous networking events, attendees will have the chance to connect with peers, establish collaborations, and build partnerships that drive innovation.
Virtual Sessions: For those unable to attend in person, the event offers comprehensive virtual sessions to engage with global audiences.
This dynamic event offers a unique platform to delve into AI's expanding role in modern society, facilitating invaluable discussions and collaborations. Whether you are an industry leader, a tech enthusiast, or someone eager to learn, Nashville AI Week 2025 is your gateway to the future of AI innovation.
Register now to reserve your spot and be part of this transformative experience. Join us as we redefine the boundaries of possibility with AI.
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Catastrophe Insurance - An Unprecedented Market
As the world keeps heating up, the 500 year floods keep rolling in, and the category 4 and 5 hurricane and typhoons because a yearly event, catastrophe risk, reinsurance, and cat bonds are becoming more and more attractive. The demand for these insurance products have increased exponentially. https://seekingalpha.com/article/4360139-reinsurance-pricing-to-catch-up-demand-expected-to-rise-analysts
For governments, businesses, and even private individuals the attractiveness of insuring against “acts of God” or unpredictable catastrophic events is only met by increasingly expensive catastrophic insurance packages. The insurance industry, governments, and central banks will need to gather to discuss how to meet this demand, and insure against catastrophes that are becoming more and more expected, but continuously unpredictable. https://www.openpr.com/news/2099899/business-catastrophe-insurance-market-to-witness-massive
The growth in this market is expected to explore between 2020 to 2025. What does that mean for your business? What does that mean for your industry? The health and pharma industry, in light of the Covid-19 outbreak and pandemic, will face an influx in government investment, and a reckoning after the pandemic dust has settled on how they account for and price their services. The insurance industry may well face the same for catastrophe insurance. Insuring the uninsurable has its costs, but what do we do when the people who need this type of insurance the most can’t pay?
Sound off in the comments or in the form? What type of insurance product do you want to see? How do we calculate the risks associated with cat bonds and catastrophe insurance in light of seemingly more frequent catastrophes? Share your thoughts in the form below and I’ll highlight in the next insurance newsletter.
Insurance Market Newsletter Update
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GENERAL REINSURANCE AG APPOINTS ULRICH PASDIKA TO EXECUTIVE BOARD
BusinessWire: Gen Re has announced that Ulrich Pasdika has been appointed to the Executive Board of General Reinsurance AG, effective 1 August 2020. General Reinsurance AG is Gen Re’s German legal entity and the main risk carrier for its international business. https://www.businesswire.com/news/home/20200506005072/en/General-Reinsurance-AG-Appoints-Ulrich-Pasdika-Executive
HOW TO SUCCESSFULLY NAVIGATE THE IMPLICATIONS OF THE EVOLVING INSURANCE AND RISK MANAGEMENT COVID-19 ENVIRONMENT
Zawya: The report reinforces Marsh's commitment to guiding and supporting the region's businesses through the adverse effects of the COVID-19 outbreak. https://www.zawya.com/mena/en/press-releases/story/How_to_successfully_navigate_the_implications_of_the_evolving_insurance_and_risk_management_Covid19_environment-ZAWYA20200517065750/
TRIAD INSURANCE FIRM DONATES MONEY TO 12 COMMUNITY GROUPS
Triad Business Journal: Pennsylvania-based Lincoln National Corp., the parent company of Lincoln Financial Group in Greensboro, announced a second gift of $1 million to aid 60 local organizations across its corporate footprint with assistance programs aimed at food and housing insecurities. https://www.bizjournals.com/triad/news/2020/05/19/triad-firm-portions-out-1-million-to-local-groups.html
RESTAURANTS ARE SUING INSURANCE COMPANIES OVER UNPAID CLAIMS – AND BOTH SIDES SAY THEIR SURVIVAL IS AT STAKE
Chron: This month, the proprietors of more than 10 restaurants, bars and bakeries in Washington, including the Michelin-starred Gravitas and Pineapple and Pearls, sued their shared insurance company, joining a growing list of restaurateurs who are seeking relief from an industry they thought would protect them from any unpredictable event, including a pandemic of historic proportions. https://www.chron.com/business/article/Restaurants-are-suing-insurance-companies-over-15280467.php
THE WORKPLACE AND COVID-19: WORKERS’ COMPENSATION TO THE RESCUE?
Forbes: Employees who were not furloughed or laid off because of the COVID-19 pandemic and economic fallout continue to work. While some became “remote” workers overnight, others–like many in the food and beverage industry–still go to work. These “essential” employees confront the risk of contracting COVID-19 at work. https://www.forbes.com/sites/aaroncolby/2020/05/13/the-workplace-and-covid-19-workers-compensation-to-the-rescue/#351cfb606295
CITIZENS INSURANCE USES FUNDS WISELY TO BEST SERVE ITS POLICYHOLDERS
Miami Herald: Preparing for the 2020 hurricane season while Floridians battle COVID-19 requires that Citizens Property Insurance Corp. be running on all cylinders, especially in South Florida where more than half of our 455.000 policyholders live and work. Read more here: https://www.miamiherald.com/opinion/letters-to-the-editor/article242846271.html#storylink=cpy
GLOBAL INSURANCE MARKET IS WELL CAPITALIZED IN THE FACE OF COVID-19: REPORT
The New York Times: Global insurers are well capitalized to absorb the hit from rising claims and costs related to the COVID-19 pandemic, ratings agency AM Best said on Monday, citing a stress test it conducted to gauge the immediate impact of outbreak on insurers' financial strength. https://www.nytimes.com/reuters/2020/05/18/world/europe/18reuters-health-coronavirus-insurance.html
EVEREST INSURANCE TAPS PATEL FROM AIG EUROPE AS UK HEAD OF TRANSACTIONAL RISK
Insurance Journal: Everest Insurance announced the appointment of Sujal Patel as the UK Head of Transactional Risk for Everest Global Markets, which includes Everest Insurance Ireland, dac. and Lloyd’s Syndicate 2786. https://www.insurancejournal.com/news/international/2020/05/13/568339.htm
AM BEST AFFIRMS CREDIT RATINGS OF AL AHLEIA INSURANCE COMPANY S.A.K.P
AM Best: AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Al Ahleia Insurance Company S.A.K.P. (Al Ahleia) (Kuwait). The outlook of these Credit Ratings (ratings) remains stable. https://www.businesswire.com/news/home/20200515005425/en/Affirms-Credit-Ratings-Al-Ahleia-Insurance-Company
IC EXTENDS REGULATORY RELIEF TO INSURANCE FIRMS
Business Mirror: The Insurance Commission (IC) raised the exposure limit of insurance companies for their respective financial assistance programs to 20 percent of the company’s net worth to help ease the financial burden of its personnel due to coronavirus disease 2019 (Covid-19) pandemic. https://businessmirror.com.ph/2020/05/19/ic-extends-regulatory-relief-to-insurance-firms/
SIFMA INSIGHTS: The Evolution of the Fintech Narrative
SIFMA Insights, Katie Kolchin, CFA Director of Research kkolchin@sifma.org, released a helpful and detailed report on The Evolution of the Fintech Narrative; Analyzing Opportunities in Capital Markets.
Fintech has been the defining attribute that has indicated whether a new security might sink or swim, but now it is time to review our history with the new age of data, and evaluate how we can improve our businesses, how we serve our customers, and evaluate next steps. Some interesting points Ms. Kolchin makes include:
it is necessary to adapt our fintech solutions on the user or customer side to customer expectations and competency levels. Fintech solutions should be user friendly, and should adapt quickly to changing user habits.
Many of the companies that are doing better than others now made key strategic IT investments 10 or more years ago. While throwing money at new fintech gimmicks is not advisable, it is important to invest heavily in IT development and cybersecurity in preparation for the next market cycle.
Capital markets firms are looking at the following approach to technology: update legacy systems, adopt new technologies, improve client experience, and invest in cybersecurity.
Ms. Kolchin has a thoroughly investigated SIFMA Insight on the growth and evolution of Fintech, and I encourage you to read it when you have some time. Keep in mind that fintech won’t necessarily just benefit your company, it may be the defining factor in how your business fares in the next 10 years.
Risk Management Check-up in 2020
As the new year and the new decade starts ramping up, now is the time to evaluate the risks that can potentially impact your business. Take a moment to review how your risk management team operates, how they identify day-to-day, month-to-month, and quarterly risks to your enterprise, and also evaluate how you are mitigating those identified risks. Here is a short checklist to keep your risk management system lean and efficient in the new year.
What risks could result in legal action or worse, criminal action for your company? Do you have a full inventory of these risks? Have you reviewed new compliance and federal regulations impacting your industry or the clients you serve? Make sure your Chief Compliance Officer and your Chief Risk Officer are up-to-date on the latest in regulatory changes.
What currencies do you do business in? Are there countries where currency fluctuation could be substantial in 2020? See what you can do in future contracts and business decisions to minimize your risk here.
Very few companies are cyber-fit. Take the time to give your business and its employees a cyber workout. Do a cybersecurity training, check in with your cybersecurity team, and consider purchasing cyber risk insurance while you have yet to have an incident. Don’t forget to check in with your IT team, your systems manager, and your data management provider to find out where the weaknesses lie.
How is your market changing this year? What competitors, customers, and providers have gone out of business in the last two years, and why? What do you need to do to stay innovative, and where are the weaknesses in your customer base and market share.
What does your average customer or client look like? How financially fit is your customer? What is the likelihood of non-payment, bankruptcy, or loan defaults? Make sure your credit risk, both for clients and for business partners, is manageable and well leveraged. Who is your backup provider for each of your crucial business inputs. Even if you’re not doing business with that provider now, you should always have a backup in mind.
These five steps don’t cover every risk your company may face this year, but they will hopefully point you in the right direction towards a healthy risk management program in your enterprise for 2020. Are you considering doing business in a new region, or introducing a new product? Consider Resolution Consulting as a resource for your newest project feasibility studies.
Fastmarkets Aluminium 2019
Resolution Consulting had the opportunity to represent one of its longtime clients in Athens at the Fastmarkets Aluminium Conference. Got questions about the metal markets in the MENA region? Reach out to us!
Mercury Resources and Resolution Consulting networking at the Fastmarkets Aluminium Athens Conference.