Back to blog

Financial Impact of Risk vs Tolerance

Pathlock
November 23, 2015

Financial Impact of Risk
No successful business can stay on the cutting edge without taking and accepting risks, but do you understand your company’s risk tolerance? Do your employees? Do you know the costs that are inherently associated with those risks and how to modify them?

Risk tolerance analysis starts with finding the breaking point, the place where you can no longer accept risk, that moment right before the proverbial “last straw” where additional risk is no longer fiscally sound.

Understanding the financial impact of risk allows you to find that sweet spot where decreased risk and increased cost meet decreased cost and increased risk. It’s here that you are able to balance your Return on Investment Capital (ROIC) with the market and determine the appropriate hedge to counter associated risks. But who has the time, and what risk impact information do you use? When is a ROIC analysis better than considering Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) data?

At Pathlock, our analytics are trusted by Fortune 1000 companies to quantify the financial impact of operational and financial risks. Best of all, we don’t just operate in theory. We look at real-time risks you have already taken and help you manage them. We assess the dollar values of your risks versus the actual bottom-line impact of decisions.

If you are ready to maximize your risk prioritization through trusted financial impact of risk data, contact us and receive the data and support you need to weigh the risks of pulling the plug or pouring in additional resources.

Pathlock Technologies. Enterprise Solutions.  Beyond Boundaries.