Listed and licensed companies sometimes need to seek specialized consulting firms to assess a specific type of risk they face and its impact on their operations. These studies may also be required by regulatory authorities, as is the case with the Executive Bylaws of the Capital Market Authority, Module 16, “Anti-Money Laundering and Combating Financing of Terrorism,” as Article 2-3 of the second chapter provides for the following:
The licensed person shall comply with the following:
- Assess money laundering and financing of terrorism risks, including those related to the development of new products and technologies. It shall maintain a risk assessment study and related information in writing, update it regularly, and provide it to the Authority upon request.
What are the Specialized Risks Studies?
Specialized Risk Studies is all about developing a systematic framework for dealing with specific types of risks to ensure managing them efficiently and effectively, whether through mitigation, transfer, or acceptance measures.
What are the types of risks that may need specialized studies?
- Cybersecurity Risks
- Financial Risks
- Operational Risks
- Reputation Risks
- Environmental and Sustainability Risks
- Legal Risks
- Geopolitical Risks
- Compliance and regulatory Risks
- Natural Disaster Risks
- Human Capital Risks
The above list is not all-inclusive.
What is the importance of Specialized Risks Studies?
The importance lies in taking a proactive step in studying the type of risk that enables top management to deal with it accordingly and to take the necessary measures as follows:
- Allocation of resources, time, and effort to effectively deal with the most critical type of risk first.
- Development of effective risk mitigation strategies and the implementation of risk management plans that specifically address the identified characteristics and vulnerabilities related to this type of risk.
- Development of expertise through specializing in a specific type of risk and gaining a comprehensive understanding of its root causes and potential consequences. This, in turn, assists the business entity in adopting more efficient strategic plans for dealing with this type of risk.
- Communication of a specific type of risk to stakeholders makes it easier to take proactive actions concerning it.
What is the added value to business entities from specialized risk studies?
The specialized risk studies have great added value to business entities, including the following:
- Deep understanding of a specific type of risk.
- Assisting top management in developing effective strategic planning for managing a particular type of risk.
- Enhancing stakeholders’ confidence in top management.
- Improving business continuity.
- Enhancing the sustainability and success of the business entity by better-leveraging opportunities.
What are the services provided by Baker Tilly Kuwait?
Preparation of specialized risk studies.