Why are Risk Management Services Important for Businesses?
18

Jun 2021

For entrepreneurs and businesses worldwide, UAE is famously known as the gateway to the Middle-East and North African markets. A business-friendly environment and the robust legal framework upholding international charters enabled companies to move to the UAE. Risk assessment is integral to all companies, especially for those looking to operate in new environments and looking to expand into new markets.

Risk Management Services

In a vast sense, risk can be defined as an event or any circumstance that harms the company's business operations. The scale of risks varies from one business to another. The Risk management services will help businesses in ascertaining potential risks involved in the businesses. 

The Risk management services which every business will utilize will be different, and it will depend mainly on the nature and size of the organization. Some of the functions of risk management services include: 

  • Streamlining all the necessary financial licence applications of the organization. 
  • Thoroughly reviewing and improving financial department functions
  • Assessing the governance, strategy, execution and ongoing valuation and accounting support for the company and producing the report with all the findings. 

Considering the recent day-to-day happenings in the volatile Middle East region, there is an excellent necessity for businesses to avail the of Risk Management Services in the UAE. With an increase in the number of businesses coming into the UAE due to its stable & flexible business framework, the potential risks faced by a company are also increasing every day. Risk assessment should be given the topmost priority by all the companies operating in the Middle-East region. 

Businesses should also take special care that the required risk management services are availed from a reputed external consultant who is professional and provided an unbiased assessment. Availing the professional services to calculate the risks will ensure that the company is getting the best quality of services and can be assured.

Need for Risk Management Services for a Business

There are always inherent risks associated with conducting businesses anywhere in the world – This is especially true while conducting business in the Middle East region. The below points explain the need for Risk Management Services for business in the UAE. 

  • Risk Management Services will help assess the company's current risk management capabilities – including the benchmarking financial risk management performance and related procedures.
  • Risk management services assist companies in establishing and enhancing the existing risk strategy, internal governance and culture to meet all the internal and external expectations in the company.
  • It will also help in the remediation of any issues.
  • Risk services will help interpret, analyze, plan for, and manage any regulatory change that can happen very often. 
  • The services will play a role in introducing required new compliance measures and reducing any compliance-related costs in the company.
  • The services help in transforming risk management functions in enhancing value addition and reducing costs.

As the potential risks are reduced, the business's bottom line will increase and show an upward trend. It will, in turn, provide the space for the companies to better the quality of their products and services.

Advantages of Risk Management Services

The significant advantages of hiring risk management services are:

  • They help the company's management and board to view the risks that are not apparent. The risk assessment report provides necessary insights and support to the Board of Directors and company management. 
  • It helps companies to get the due credit for their cooperation. Many regulatory agencies have specific policies which "give credit" to businesses under investigation for employing compliance or a risk prevention program in the company.
  • A risk assessment will help reduce any business liability and reduce the overhead costs by eliminating unnecessary insurance coverage.
  • Risk assessment services will help companies to build a better defence to any class-actions. 
  • A risk management plan allows the company's investors to confidently make informed decisions about investing in the company, which benefits the business in the short terms. 

How Can We Help?

We at Jaxa Chartered Accountants always adopt a comprehensive approach to fully understand the risk management requirements of the client's company. Our experts work actively together with our client companies on-site and support the organization. Our consultants always recommend necessary risk improvement solutions that are implementable, practical and cost-effective to our clients. Please Contact Us to know more about our risk management services which are required for your business. We'd be happy to help!