DEALING WITH UNCERTAINTY FOR CREATING VALUE
RIVALE is the abbreviation of Risk & Value Engineering principles meant to maximize Business’s Value and Enterprise Development by managing risks adequately.
The lower residual risk, the higher residual value.
The more risk management capabilities, the more risks should be taken for approaching more business opportunities safely.
Enterprise Valuation & Revaluation
According to RIVALE, it is not only the prerequisite for M&A Deals, Investment Banking, Funding, Collateral purposes, Debt to Equity Swap, etc., but it is also the way of measuring the effectiveness of risk mitigation actions.
The ultimate expected result is the diminishing of risk premiums that subsequently determines lower discount rates for business valuation, and higher net present values for maximizing business realization.
Consequently the outcome of Revaluation after diminishing residual risks would be certainly better than initial Valuation based on inherent risks.
Independent Risk Assessment & Oversight
It ensures the objectivity or risks recognition, assessment, mitigation, prioritization, allocation, by avoiding the conflict of interests among the risk owners (either overestimating because of risk aversion or underestimating for hiding serious circumstances and root causes or because of a higher risk appetite).
Enterprise Risk Management benefits:
Decreasing business downtime, Reducing performance variability, Seizing opportunities,
Responding to a changing business environment, Lowering insurance premiums, Improving deployment of capital,
Enhancing corporate governance, Risk Intelligence & Performance,
Enabling risk mitigation elements into the decision-making process,
Alignment of staff with the company’s risk profile and tolerance by keeping
the balance between risk aversion and appetite,
Assuring the resilience for sustaining debt repayment,
Detecting debtors’ insolvency early signals for recovering the debt effectively,
Getting better outcomes from trustworthy deals with customers, suppliers, banks, investors,
insurers, employees and all stakeholders,
Developing resilience and creating sustainable business value by diminishing risks
RIVALE’s Universe of inter-related risks:
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