MENLO PARK, CA – Operational risk consultancy and software firm Protiviti has launched a Financial Crisis Team consisting of multi-disciplinary consultants, to help address the risk management emergency since the onset of market turmoil.
Protiviti says the strategic group will include experts on litigation, restructuring and risk management, reacting to the needs of firms in current and unfolding market conditions.
Carol Beaumier, heading the Financial Crisis Team and executive vice-president at Protiviti, says: “Never before has there been such a need for prudent financial risk management. Even the strongest of companies will find themselves subject to increased market pressures and regulatory scrutiny. Others may need to seek additional capital and liquidity or even merge with other organizations. The Protiviti Financial Crisis Team will help clients assess their current financial condition and navigate the uncharted waters of this economic turmoil.”
Protiviti outlines a number of initial recommendations for firms. The first is a detailed review of their current financial condition – specifically focusing on liquidity, asset quality, capital and alternative funding sources.
Other recommendations include better understanding of the financial options available privately and through government to help struggling firms, preparation of financial forecasts, stress testing for business models, and risk management framework reviews, especially for counterparty, liquidity and credit risks.
Unacceptable financial risk exposures should then be mitigated, in addition to an assessment of options for raising capital, due diligence for disposition or acquisition of underlying assets, and strategic alternatives explored – not shying away from mergers, acquisitions and restructuring.