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MANAGE YOUR RISK FOR GREATER REWARDS
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 ProValue, LLC is formally announcing a new Enterprise Risk Management (ERM) initiative designed to be strategic, practical, and profitable. The goal of this ERM program is to provide the following tangible benefits to ProValue clients:
I. Reduce your future total "cost of risk" II. Better communication and understanding among staff and board related to your company's risk / reward curve III. Shared management and board accountability given the joint process development effort IV. Employee incentive structure that is properly aligned to the board's risk appetite and is linked to the highest impact controllable factors V. Grow your company long term through strategic acquisitions when your competitor stumbles from events you were better prepared for
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The ERM approach we are using has withstood the test of time in many other industries, but it is a process relatively new to many in agriculture. Jason Lawrence, formerly a senior lender at CoBank, will lead the program. ProValue's ERM program leverages sophisticated analytical tools with ProValue's experience and ability to interact meaningfully with boards and senior executives. The result will be a custom tailored ERM program that will be strategic, practical, and profitable. |
If you and your board are satisfied and confident in your answers to the following questions, you do not need this ERM program from ProValue:
- What has your historic cost of risk been over the last ten years?
- How much total risk are you taking and how does that compare to your company's risk appetite?
- Do employees and the board fully agree and understand the risk /reward tradeoff scale being used?
- Do you spend as much time measuring total risk as you do measuring the total reward (i.e. monthly income)?
- Do you conduct "look backs" of past key assumptions to improve future business planning?
- Can you statistically defend what the top income drivers have been for your company and how much each contributes to your annual variance in profitability?
- Are you financially incenting your employees to make the correct risk / reward trade offs for the company?
- What are the common mode failures in your business that can cause multiple business functions to fail simultaneously, exponentially increasing the cost of the failure?
- How do you know your risk management works? In other words, how can you tell between good luck and good risk management?
- As business and change continues to accelerate, are you optimally positioned to reduce your downside risk and seize offensive opportunities when they occur?
If you are not satisfied with your answers to the above questions, you are not alone. We would be happy to help you step through this critical process. Please contact Jason Lawrence for further service and pricing information at 620.899.8304 or jlawrence@provaluellc.com. We look forward to working with you. |
