Risk management services

 

We have seen it too many times. Companies and government agencies with mathematically inconsistent H-M-L risk matrices and risk registers listing hundreds of risks, producing a mountain of work for a speck of benefit. Many are not even making the most of AI yet.

 

It ticks a box, certainly, but an organization with tick-a-box risk management is a risk unto itself. (For a scary example, see the client testimonial at the bottom of our Clients page.)

 

Enter Kelly & Yang. 

 

We use a hybrid super-intelligence approach consistent with ISO31000. Here's how it works:

 

• The evidence-based crystal ball.  Your management team already holds the subject matter expertise and industry experience within their heads. We facilitate workshops to help you use it to look ahead: this risk might happen once in five years, that risk every ten, another every 50. Once estimated by your experts in our workshops, these convert into mathematical likelihood percentages.  No tea leaves needed.

• Expert estimates of financial impact range for each risk.

• The black swan. Most risks come from an expected cause, but the unexpected should not be overlooked. A one-in-a-hundred-year event has a 1% chance in any one year. Small but potentially significant. It still gets included in the analysis.

• The maths bit.  From this we model probability percentages, likely cost ranges and Monte Carlo them into a dollar distribution, less any probable insurance recoveries.

• Ingesting the paper trail.  Workshop outputs are cross-referenced to insurance cover, company policies, employee codes of conduct, customer contracts, and supply chain contracts. These are confidentially ingested into your preferred AI tool, and Kelly & Yang checks the inputs, execution, and outputs to maximise validity and usefulness. The devil resides in the fine print nobody reads, and we make sure it gets analysed, updated where necessary, and acted upon. 

• The reality check. We help management compare the risk distribution with the company’s financial strength: cash management, borrowings headroom, and earnings ability. In short, can you afford the bad days?

 

What you get:

 

• Insightful debate at board level on the nature of risks, how they are quantified, and the board’s overall risk appetite. A real discussion, not a polite nod.

• Insurance linked to risks, so limits and deductibles can be optimized where they are duplicated or do not fit the board’s risk appetite.

• The most impactful risks to help prioritize board discussions, while delegating risk management to relevant committees and line managers. 

• Policies, contracts, and business procedures that need changing can be updated to reduce risks, often at little or no marginal cost, with the reduction automatically quantified in the Monte Carlo distribution. Fix a process and watch the cost profile improve.

• Risks linked to the existing assurance processes such as internal audits and safety inspections, so assurance activities line up with the board's risk priorities.  Suddenly, assurance tasks are no longer an irrelevance.