Risk Management
Risk management refers to a range of tools or products and procedures which will help a company to manage its exposure to loss.
When proper protocols are put in place and followed rigidly then issues such as trust are no longer needed. Every step of a transaction, from initial introduction to continued delivery is informed by a protocol that protects every party in the transaction.
These are the basics that Nigerian Oil Services practices.
When there is an introduction there is data collected which is verified.
When the is an intention made there is a soft probe to ensure capacity to perform.
When there is a contract written there are bonds and banking instruments that guarantee performance.
When there are banking instruments initiated the language in them calls for legal protocol and performance.
When there is product offered there is verification that it exists and that the title is in the right hands.
When there is availability of product there are quality and quantity (Q & Q) verifications.
When there is proof of product there is a performance bond warranting delivery.
When there is delivery there is further verification of quality and quantity.
When the delivery is made it triggers documents that are presented to the banks.
When the documents are presented the title to the property changes hands as the money is transferred.
When the money is transferred it triggers further conditional contractual payments to all parties involved.
When parties present invoices that triggers automatic payments to be drafted against the monies in the accounts informed by banking instruments in advance.
Everything is procedurally precise, strictly adhering to international banking and transference laws, no short cuts.
The Result – Everybody is happy because everybody has been protected.
Jeff Scott – CFO