Risk management consulting LEADER endorsed by FORBES and world renown business consultant Alan Weiss. Risk management consulting firms business model.
Risk management consulting is leveraged by corporate chiefs who know they need to rely on risk management consultants for success. http://fiscaldoctor.com These corporate chiefs want to understand their proper fiscal (financial, operations and systems) corporate infrastructure in order to succeed.
My name is Gary Patterson, the FiscalDoctor. One of the key reasons why so many businesses are struggling today is due to their failure to meet with a risk management consultant to avoid using accounting systems and reports that are historical in nature instead of offering current and relevant information needed for corporate management to run the business.
Your duty today is to begin your due diligence on risk management consulting firms and hone your list to a few risk management consultants that make sense to you.
To help you make your selection, let me give you a quick case study example about a $30 million corporate time bomb. I was brought in as CFO of a $40-million, high-flying Inc. 500 company that had revolutionized the luggage industry. My job was to help bring the company public. It was what most CFOs would consider a dream job. However, it didn’t take long for that corporate dream job to turn into a nightmare.
I joined the company right after it had completed its financial audit. Merrill Lynch’s then commercial lending arm had given the company an increased line of credit for several million dollars for a major capital expansion to prepare it for the IPO planned for the following year. Within the first two weeks, Merrill Lynch asked me to update the financial projections from what people often call dream (a.k.a. phantom) numbers to realistic five-year projections.
By week three, I discovered a financial oversight that would have undone the company. This $40-million company had recently placed inventory orders for $30-million worth of suitcases scheduled to arrive over the next six months.
As unbelievable as it sounds, situations of this magnitude relative to corporate size periodically occur in companies too focused on growth to be bothered by monitoring risk.
Also, scenarios like this go a long way toward explaining why corporate executives and boards of directors are beginning to emphasize risk management equally with corporate governance.
They have no desire to be featured in a future Wall Street Journal article on some ignored formerly invisible risk that explodes at the worst possible time.
Supposedly, no one in management knew about this imbalance or how it happened. Worse than that, the company didn’t have the money to pay for it, nor did it have the storage space for the inventory.
And, it was purchasing the wrong inventory to boot. So, why not just stop the order and refuse to pay?
The suitcases were already being manufactured overseas, and I was told the purchase order could not be canceled without destroying ven¬dor relations and, most likely, launching unwanted lawsuits.
The business plan I created gave us the road map we needed to gradually dig out of the problem. The bleeding was stopped, profit leaks were plugged, inventory controls were in place and management had the information they needed to plan forward, instead of just reflecting backward. And, how does the story end? The com¬pany is still in business and doing well today.
Using accounting systems and reports that are historical in nature instead of ones that offer the current and relevant information corporate management needs to run the business can result in all kinds of problems, such as devastating inventory problems, inadequate purchase order controls, crippling vendor contracts, and giveaway sales reductions. This is no way to run a business, at least not a healthy one.
Unfortunately for too many companies, it is a very common problem. That’s why I specialize in providing businesses with a “doctor’s bag” of the essential instruments, tools, and frameworks corporate decision makers need to evaluate the financial fitness of their organization going forward, as well as a treatment plan that will develop a corporate mindset of financial preparedness.
The end result of what I provide is a strong, vibrant, healthy company capable of withstanding even the harshest economic conditions.
All told over 200 companies have benefited from my treatment plan. Unfortunately, that’s barely made a dent in the number of companies that desperately need my type of service. Plus, a great number of these companies that need my services need them yesterday, and waiting any length of time will only increase their chances of failure.