I have read yesterday about a young financial services focusing on people “left out in the cold by high street banks”, other words for subprime. They give unsecured loans and manage debt servicing online. They grow fast: 50% a year since creation. They keep hiring. Staff is young and a free iPhone is offered as part of the package.
Risky strategy? Definetly. A recipe for bankruptcy? Maybe. Or not. It all depends – mainly – if the young pushy directors of this group are well aware of the risks they take, managing them accordingly, aligning them to their risk appetite when stiring the strategy.
Would you to discuss more about alignment of strategy and risks? Please comment on this blog and come, for a live debate and drinks (all free of charge) in le Pain Quotidien, 1 Bread Street on Feb 9th at 5 pm.
See you soon!
Ariane
Risky strategies
Promoting and Developing the Discipline of Operational Risk Management
Related Articles
A Question for the members
IOR Admin, , From IOR Members, 0The Internet has facilitated the collapsing of traditional towers of power from the entertainment industry to governments. Does this...
Self Assessment vs Assessment
IOR Admin, , From IOR Members, 0What is your view about ‘Operational Risk Self Assessement’ (RCSA) vs Assessments conducted by Operational Risk Managers i.e. Risk Assessments....
Stature of Operational risk heads in organisations
Lee Evans, , From IOR Members, 0The updated sound principles for supervision and management of operational risk guidelines from Basel specifically requires that Operational risk...
Risk and the strategic role of leadership
IOR Admin, , From IOR Members, IOR News, 0Author: ACCA (the Association of Chartered Certified Accountants) The Institute supports its members posting interesting articles on the basis that...
Emerging Risks in India
IOR Admin, , From IOR Members, IOR News, 0Author: Sonja Kumar PIOR This article first appeared in Legal Era, Feb 2018 The Institute supports its members posting interesting...
Blog power underutilised
IOR Admin, , From IOR Members, 0Blogs are a powerful medium of communication to a group or general community. There are several blogs specifically on...
Risk management for other sectors
Lee Evans, , From IOR Members, 0how does risk managment apply to the Non financial sector? for example an audit firm or a consulting firm?
Risk Culture – Catalyst and Risk.Net Study and Feature Jan 2018
IOR Admin, , From IOR Members, IOR News, 0Author: Risk.Net The Institute supports its members posting interesting articles on the basis that copyright is acknowledged to be held...
