What are risk assessments?
Risk assessments entail the systematic analysis and evaluation of potential risks and threats faced by businesses, enabling informed decision-making and risk-mitigation strategies. They encompass:
- Risk identification and analysis: Identifying and analysing potential risks and vulnerabilities to business operations, including financial, operational and reputational risks.
- Risk mitigation planning: Developing strategies and action plans to mitigate identified risks and vulnerabilities, including implementing controls and safeguards.
- Scenario and contingency planning: Creating scenarios to assess potential impacts of various risks and developing contingency plans to respond effectively in case of adverse events.
- Compliance and regulatory risk assessment: Evaluating compliance with laws, regulations and industry standards to identify regulatory risks and ensure adherence to legal requirements.
Some of the main benefits of risk assessments are:
Gain insights into assets and investments
Identify financial losses and liabilities by addressing vulnerabilities
Inform decision making by identifying and mitigating risks
Enhance stakeholder confidence and trust through risk management
Optimise operational efficiency and continuity
Key questions that are answered by risk assessments
Risk assessments aim to answer several key questions to guide strategic decision making:
- What are the potential risks and vulnerabilities facing our organisation?
- How likely are these risks to occur, and what are their potential impacts?
- What strategies can be implemented to mitigate or minimise identified risks?
- Are there any regulatory or compliance risks that need to be addressed?
- How can our organisation ensure business continuity in the face of potential disruptions?
In On Africa’s risk assessment services
The number-one priority for many stakeholders that In On Africa (IOA) works with is the identification and isolation of risks as they pertain to working in Africa. Such risks take various shapes and occur in a variety of sizes, ranging from potential social instability prior to and following national elections through to ongoing security issues along borders or within conflict-affected states.
Since 2010, we have provided risk analyses and reporting to various international and local clients who wanted to better understand the risks posed to their operations in Africa. Some examples include a wide range of terror and conflict assessments in West Africa, border security analyses in countries like Tunisia, travel risk assessments in countries where local travel poses notable security risks and an in-depth financial risk assessment in South Africa.
Outside of working with governments and businesses in guiding their risk mitigation planning, we have also served the intelligence needs of humanitarian organisations that require well-informed, expert insights – often on very short notice – to guide their efforts on the African continent. Some other clients have made use of our risk expertise to guide plans for future investment in Africa, including major development banks and multinational corporations.
Our approach is always one of assessing available data – accessed through our wide range of sources, databases and partners – and coupling that with rigorous intelligence drawn directly from our networks on the ground. We ensure the most up to date and accurate view of current and potential risks.
Our risk assessment offerings range from short-term analysis of current developments to inform quick decisions to more long-term analysis such as election monitoring and ongoing risk monitoring and mitigation services.
Risk assessment project case study:
Analysis of hijacking and other security risks for a chemicals company in West Africa
Client:
International chemicals company operating in the mining sector
Country:
Burkina Faso and Mali
Methodology:
Desktop-based research of conflict hotspots to identify the potential for risk in transport hijackings in each market
IOA was commissioned by an international chemical company to conduct a risk assessment of Burkina Faso and Mali in West Africa. The purpose of the research was to identify and assess specific transport routes and locations in the vicinity of target mines in both countries, which were potentially exposed to terrorist attacks and other security threats like hijackings. The study aimed to guide the client on plans to potentially transport its chemical products to mines in one or both West African countries.
The research involved a thorough assessment of the situation on the ground in each country, focusing on key touchpoints, such as notable terrorist groups operating in each market, conflict areas of potential concern, frequency and types of attacks on the ground and their specific locations. The research also touched on important incidents and trends within and near the target mines.
All identified locations and security-related incidents were mapped out visually to provide the client with the necessary data to determine potential risks and possible transport routes.
Key project outcome:
IOA provided the client with a detailed risk assessment report, which included strategic recommendations to guide our client’s decisions on whether to sell their products in the two markets. The report was supplemented with online mapping of security incidents in relation to the position of key mining locations.
Find out more about how IOA can help you identify and assess potential risks.
Read more about IOA’s various service offerings and examples of our past work.