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Scotsman Guide - August, 2008 |
Threats – and Their Top 5 Hiding Places
 - An article by MBS' Andrew J. Schell, CPA, CMB -
Scotsman Guide – August, 2008 – In the mortgage industry, when brokers and business-owners think of risk management issues, they typically consider fraud detection and regulatory-disclosure compliance. There are many other significant issues that brokers should consider, however.
In fact, there are five key risk-management categories that are critical to a mortgage broker’s and business’s well-being.
These include:
1. Operational risk, which can be mitigated by having a disaster-recovery plan;
2. Financial risk, determined by whether a company is making money and how finances are handled;
3. Compliance risk, which involves having appropriate disclosures and fraud prevention;
4. Counterparty risk, which involves working with third parties and business partners; and
5. Reputation risk, involving how clients, referral partners and others perceive a business.
Each of these risks has its own factors. The outcomes from each also can lead to other risks. Knowing how to handle these risks can help ensure a business’ success.
Click here to continue to read the entire article written by Andy.
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