Risk Assessment in the Age of Transparency
Project managers and CEOs alike often look at me like I’m crazy when I advocate that they disclose all the major risks — the things that could go wrong, even if the chances are slim that they will.
I’ve been doing this work for many years and still get “the look”. If this seems like a given to you, read no further. Otherwise, at the risk of seeming careless or worse (clients have said to me “Do not tell investors that!”), let me explain.
Why is this a good idea? Quite simply, because it is both necessary and ultimately helpful to have the conversation, first with yourself and other team members, then with investors, rather than relying on flawless execution, faith or luck. To not assess and analyze these risks is unwise and irresponsible (even if intimidating or seemingly pointless at first, because we all know things can and will go “sideways” at times).
When talking with others, initially select only those who are able to help articulate what they see as the real risk factors, and either help you determine how to best manage them, coming up with mitigating factors, or at least provide well-informed feedback about mitigation plans made thus far. There are no set formulas for figuring out the best solutions, and what matters most is that you take the conversation seriously and commit to doing this important work.
Best case, you’ll improve your business plans with backup or contingency plans (and earmark funding accordingly); worst case, you’ll have done your homework and faced the elephant in the boardroom.
This process ultimately helps you and your team stare down the risk factors, look them square in the eyes, and decide what you’d do if lightning struck and the thing that really “shouldn’t” happen actually does.
To the surprise of many, there are simple solutions to many “beyond our control” risks, including various types of insurance, contractual guaranties, enhancements, and more. For some of the commercial and political insurance solutions available, go here.
About In3 Group
In3 Group offers impact capital and strategic advisory assistance, document preparation and loan application services to projects, ventures and long-only fund managers considering or currently raising capital. We bundle our strategic advisory services within a structured and methodical process to assist clients to develop or polish business plans, loan applications, offerings, winning marketing proposals and due diligence materials. Our team brings global capital market experience to assist clients with successful capital raising and marketing tools. We save our clients time and effort with gaining access to the they need to execute plans.
Private investors and have redefined transparency and will no longer accept incomplete visibility into known risks and operations. In3 coaches project manager clients to prepare for efficient access to capital through the development, organization, and refinement of high-quality marketing materials, “investment committee-ready” offering materials, transparent due diligence documentation, and high-impact presentation approaches.
To learn more about how In3 may be of service in achieving your capital raising goals, please email us or call the number listed below. We invite you to experience what In3 can do for you today.
In3 Finance Group
888-222-4733 (+1 831-761-0700 outside the US)
apply@in3finance.com