risk management a practitioner’s perspective joe carr chartered accountants nama forum tuesday 29...
TRANSCRIPT
Risk Management A Practitioner’s PerspectiveJoe Carr
Chartered Accountants NAMA Forum
Tuesday 29th March 2011
Belfast
Contents
Understanding the ‘extraordinary’ context of
NAMA
Practical risk issues in dealing with the
preparation of NAMA business plans
Quality control of business plans; some
fundamental questions
A few golden rules
Q&A
Understand the ‘Extraordinary’ context of NAMA Serious and systemic threat
NAMA creates a ‘Public Interest Entity’
► Overarching objective – National Interest (ROI)
- (S33) N.I. economy
► Standards
State are an involuntary creditor and NAMA Act confers extraordinary power on the agency to advance and protect the National Interest
Not preparing normal business plans
Practical Risk Issues Focus on some of the practical risk issues
associated with business planning for NAMA clients:
► Understanding the wider context of NAMA
► Client acceptance and suitability
► Commercial risk
► Clarity of roles and expectations
► Technical tools, methodologies and approach
► Competence
► Evidence, rigour, judgement
► Documentation
Quality control – some fundamental questions
Finance & Risk:► Business planning timeline – striking the right
balance► Cash & Headroom► Debt reduction ► Operating cost structure and level ► Debt/equity ratio► Risk management► Residual risk exposure
Quality control – some fundamental questions
Business Plan:► Opening position► Aims, goals, priorities► Internal capabilities and management► Assumptions, tasks & tactics► Targets, financial and non-financial► Implementation of tasks
6 Golden Rules 1. Client acceptance is a decision, make sure you
make the right choice
2. Apply the same type of expertise, rigour and discipline that you would to an audit, accounts preparation
3. Understanding both breadth and depth of the business challenge is a prerequisite. Do not go where you do not know or where you are not comfortable
6 Golden Rules 4. Have clarity on:
► Client and stakeholder objectives, goals and timeline► Advisor role and reasonable expectation of success► Approach/methodology► Inputs and timeline► Outputs► No guarantee on outcome
5. Document all key steps, milestones, meetings and evidence
6. Assign people with confidence, ability, experience, rigour and discipline to do assignment
Q & A
MazarsHarcourt Building Block 3Harcourt RoadDublin 2t +353 (0)1 4494400e [email protected]
MazarsMazars PlaceSalthillGalwayt +353 (0)91 570100e [email protected]
Contacts:
Joe Carr Managing Partner [email protected]
Enda Gunnell Financial Advisory Partner [email protected]
Tom O’Brien Financial Advisory Partner [email protected]