About Franco

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About Franco

• Accountant Partner with MGI Malta
• Risk Management, Internal Audits, Organisation
  Effectiveness
• Risk Averse

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Professional Indemnity is necessary?

• Statutory obligation
• Managing risks
• Top down or Bottom up approach?

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Francos free time
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It is all aboutRISK APPETITE
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RISK APPETITE

• Stop and think
• What can possibly go wrong?

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What Risks Is Your Business facing?

• Charles de Gaul International Airport in Paris
• I don't think I'm at fault, I don't think I made
  any mistakes. Paul Andreu, Architect.

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Bank of America eyed in Parmalat scandal
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The environment

• Do you provide advice or consultancy?
• Do you have a responsibility to your clients and
  any breach of that responsibility could lead to a
  claim against you, causing serious damage to your
  business?

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Risks

• Unfortunately, we live in litigious times.
  Businesses can be sued, rightly or wrongly, for
  seemingly vast damages over a whole series of
  complaints.
• Risks are future events that may result in a loss

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Risk Management put simply

• Identify risks
• Measure against your risk appetite
• Hedge

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Identify risks

• Know your business
• Identify all your stakeholders
• What-if
• Listen
• Discuss
• Listen

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Measure risks

• Define your risk appetite
• Simulate events
• Quantify potential risks
• Identify the risks you do not want to bear

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Hedge

• Avoid
• Share
• Transfer
• Cap

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Thank you