Risk Management Services as a Business Venture

Abstract

Risk management is an important field in market operation. Most of the firms insures their businesses so that they can recover in case of a loss. The main objective of risk managers is to help the company overcome various barriers in the future. A good risk manager knows how to mitigate the risk at the least cost possible. The risk covered include property and stock for sale.

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Executive Summary

I welcome all our clients on this proposal as we seek to begin offering our service in risk management. Risk management is vital to the growing firms as well as those that are already established. There are various risks that a firm need to be aware of in their daily activities. Upon its establishment, Capstone will be carrying out research on the possible risks that may affect a company. We will also be outlining the effective strategies to control the occurrence of the risk in the future (Goswami, 2015).

We are beginning this project as we have found out that most of the firms that are offering this service do not live to fulfill the customers’ desires of mitigating future risks in their firm. We have a well laid down strategies that will enable us to determine the occurrence of a risk. Our team of experts will give advice to the management of our clients’ firms on the best measures they can employ to avoid the risk.

Vision

The vision of our firm is ‘Service beyond obvious.’ The vision statement indicates that we are a dedicated team that enters the market to offer something different from what other companies have been offering to the clients.

Mission

The mission is to become the best firm in risk management in the country and globally. Our effort to work in collaboration with our clients will enable us to come up with the best strategies that will improve the quality of services provided.

Objectives

Our main objective is to improve the quality of risk management of various firms. Our aim is to create a generation of firms that can focus on future barriers and create some measures that will assist in overcoming them. The objectives will be achieved by our effort to work with the clients’ staffs. The collaboration will help us have a consultative and focused strategy.

Scope

The Capstone risk management project does not have a specific consideration in terms of the size of our clients’ firms. We appreciate the idea that all the companies contribute largely to the growth of our economy. Therefore, we will give equal attention to all our customers and help them to focus on the growth of their firms.

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Motivation for Entrepreneurship

We largely appreciate the growth of businesses in our country. Working in collaboration with the growing firms is enough motivation, that they will too grow to their imaginable size. We will assist them by ensuring that they continue with production without having to get disrupted by risks that may come on their way.

Product and services

Our major service is to determine the occurrence of a risk in a given firm. Our product will depend on the size of the firm. The product will only be determined by the cost of the project. Smaller firms will be charged differently from the bigger firms. Therefore, our product will depend on the size of the firm. In addition, will help the firm in training their staffs on various means of overcoming possible barriers. The service will be offered for free to our clients.

Environmental analysis

In our bid to build a reputable outsourcing company, we need to consider the effect of the environmental factors on the growth of the firm. They include;

Political factor

The political environment in our country gives a good room for entrepreneurial development. We have a well organized political forum. Therefore, investors cannot worry of any political disagreement that can easily lead to civil war.

Social and Cultural Factors

The society has its norms depending on their settings. We acknowledge that our activity does not have any effect on the social values. In fact, we will be of value to the society as we will offer employment for the majority of the people (Al-Araki, 2013). In the end, we will have raised the standards of life for the members of our society. We also value the culture of our people. We have a hard working society, and we will encourage this attribute that will lead to greater growth.

Economic factor

The economy of our country is one of the best in the world. Having a stable economy will assist us in making possible targets that will not shift with time. The consistency of the value of our economy will help us focus well on the development of strategies that will encourage the growth of our clients’ firms.

Technological factor

The growth of technology in our country is vital to the growth of our firm. Technology has a lot of benefits ranging from reducing labor and cost. Also, technology will help us in making viable assumptions when making a forecast on the future status of risk to our clients’ firms (Triki, 2015). Our firm will make the use of modern technology to ensure that we offer the very best service to our clients. The quality of the service offered will be the determining factor of the level of our growth. Since we are projecting a high growth, we will ensure that we employ the best mechanisms to meet the needs of our clients.

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Legal factor

Every activity undertaken in our country must be legally approved. The government regulates all the firms to ensure that they offer a valuable service to the citizens (Bharathy, 2014). In order to ensure that our firm engages in legal activities, we have registered our firm and fulfilled all the requirements as dictated by the law. We ensure that we follow all the regulations outlined by the government.

Ethical factor

We are a firm that observes the ethical values in accordance to our line of business. We ensure that our relationship with our clients and the rest of the society is respectable.

Industry analysis

SWOT analysis and SWOT strategy matrix

SWOT is an acronym of factors that affect the prosperity of the business and include;

Strength

Our strength in this activity is that we have conducted a research that enables us to see the loopholes that other companies fail to focus. We are entering into this business knowing where to put more emphasis and win a lot of customers.

Weaknesses

There are risk management firms that are well registered and in good operation. Our weak point will be to convince the companies that are served by these firms that we can offer better services.

Opportunity

We have a greater measure of opportunity regarding our entrance into the market. We are coming into the market with a different perspective and offer better and quality services.

Threats

The main threat to our prosperity will be stiffer competition in the market. Companies are coming into the market with a lot of innovation to the products offered.

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SWOT matrix

Our strategy will involve the activities that will maximize our strengths and opportunities and minimize our weaknesses and threats (Ebonzo, 2015). Therefore, we will consider offering high-value services to equalize this matrix.

Michael Porter’s Five Force Analysis

Supply power

Supply has the power to influence prices in the market. When the supply exceeds demand, prices go down. On the other hand, when supply is lower than demand, prices will go up. The supply of our service is still low in the country. It will take a long time before the current market gets overwhelmed by supply.

Demand power

The high demand for risk managers is leading to huge high expenditures by the firms. Our entrance into the market will well serve the demand that the firms need.

Competitive rivalry

There is a good competition in the market offering the same service to us today. The rivalry entails offering high-quality services. Our team will be very active in developing strategies that will be more attractive to our clients.

Threats of substitution

Our main threats in terms of substitution will be the firm’s decision to hire experts that will predict the future performance of the company. Since that decision is costly to the firms, they will choose to outsource the service from us.

Threats of new entry

The new firms that are entering the market in this field are a major threat to our prosperity. To deal with them, we will increase our level of quality to ensure that we maintain our customers.

Major competitors

Our main competitors in the risk management industry are the insurance companies. Some global outfits such as the AIG offers a complex ground for our penetration.

Inaugural market

Our product will be launched in the New York City. The city offers the best opportunity for us as most of the firms are set in there. The city will give us a better opportunity to interact with firm managers and explain our offers.

Approximate investment

Our initial capital is a sum of US$ 1 million. The money will be invested appropriately as we begin our task. We will need to have the space, hire competent workers and also buy the tools for the work. As we progress, we will consider working with the commercial banks. The banks will give us loans to boost our activity.

Conclusion

Capstone risk management is a firm that is coming into the market with an understanding of the various needs that the customer desires. We will make sure that we address these issues to the best of our understanding. Our team of managers that include experts in insurance will help us come up with the best strategy that will satisfy the consumers’ needs. We will also encourage constant market research that will help us understand the customers need. We will henceforth work according to their needs as we are a listening partner.

References

Al-Araki, M. (2013). SWOT analysis revisited through PEAK-framework. Journal Of Intelligent & Fuzzy Systems, 25 (3), 615-625.

Bharathy, G. K., (2014). Applying a Systems Model to Enterprise Risk Management. Engineering Management Journal, 26(4), 38-46.

Ebonzo, A. D. (2015). Ranking alternative strategies by SWOT analysis in the framework of the axiomatic fuzzy set theory and the ER approach. Journal Of Intelligent & Fuzzy Systems, 28(4), 1775-1784.

Goswami, P. (2015). Need for objective, quantitative and inclusive performance matrix for research design. Current Science (00113891), 108 (3), 320-321.

Triki, M. (2015). Hierarchical power management of a system with autonomously power-managed components using reinforcement learning. Integration: The VLSI Journal, 4810-20.

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