Risk Matrix - Tools to Identify and Mitigate Risks

The current situation made clear how quickly a crisis can occur on an unpredictable scale (economic shot-down). Countries, economy and companies were initially overwhelmed with the Corona crisis. Even sophisticated analytical tools did not foresee such a "black swan .”

Even though the first recovery of the Corona impacts can currently be observed, the further development is very uncertain. The returning from the lockdown always bears the risk of a new rise of infection rates.

Risk management in corporate treasury is therefore more important than ever! It was and is essential to define risk areas and use scenarios to check what effects the current situation could have on the company to be prepared for appropriate measures. Depending on the intensity of the effects, the catalogue of measures must be adjusted from scenario to scenario.

The following "risk matrix" provides the treasurer with a first quick overview of potential sources of risk and helps to identify the need for action. The aim is to point out general potential consequences and make recommendations for action.


Risk Matrix

 

Prepared by Verband Deutscher Treasurer e.V. Risk Management-group

Articles


Treasury First – 20 Years of the EACT

As the European Association of Corporate Treasurers (EACT) celebrates its 20th anniversary during 2022, it is an appropriate moment to reflect upon its journey from being a group of professionals largely concerned with their own national concerns, to the visionary, receptive, and respected organisation it is today.

Read
Photo from Live Events are Back at the ACT

Live Events are Back at the ACT

Hear details of the ACT's latest live events, which have continued to facilitate professional development and networking with friends and peers.

Read
Photo from ACTA Celebrates Fourth Anniversary in the Eastern Alps

ACTA Celebrates Fourth Anniversary in the Eastern Alps

On 21 October 2021, the fourth ACTA AGM was held ‘live’ at the Andaz Hotel, Vienna.

Read
Photo from Putting Principles Before Profit – ESG Shifts the Baselines

Putting Principles Before Profit – ESG Shifts the Baselines

Have we reached a breaking point – or a tipping point on this emotive subject?

Read
Photo from Review of EMIR thresholds by ESMA

Review of EMIR thresholds by ESMA

ESMA has recently decided to review the thresholds fixed for each asset class for EMIR obligations of collateralization.

Read