Risk Proof Your Strategy with the CCH Tagetik Smart NOW Risk Adjusted Planning App
FinanceJuly 16, 2020

Risk Proof Your Strategy with the CCH Tagetik Smart NOW Risk Adjusted Planning App

The time to gamble on a strategy isn’t now. Know your risks and plan to mitigate them with the CCH Tagetik Smart NOW Risk Adjusted Planning App. Read the blog now!

During this period of crisis, worst case scenarios seem ever so close to reality. To keep the lights on and staff employed, the pandemic is forcing organizations to take drastic actions to bring more cash in and halt cash out. From one day to the next, many have to re-plan operations, supply chains, IT, workforce, and communications.

Executives gather 'round the virtual boardroom, making some of the most significant ad hoc strategic decisions they've ever had to make. Their ability to qualify each risk in a thorough, timely manner is dependent on the ERP and CPM systems they have at their disposal. Therein lies the problem. Many of these systems lack the data intelligence, processing, and depth required to measure risk, let alone mitigate, transfer, avoid, or accept the risk. Something’s gotta give.

The Biggest Challenges to Effective Risk Management

Accounting for Risk in Standalone Plans: Many organizations don't inherently build risk identification into strategic or operational plans — not that you'd reasonably assume a pandemic would be on the horizon.

Siloed Risk Responses: Fragmented approaches to risk result in a fragmented approach to risk management. This results in an environment where it's every department for themselves. No cohesion, no unified response. A decentralized, remote workforce exacerbates this problem as the tribulations of working from home impact collaboration.

Weighing the Probability of Risk: How likely is a risk to become a reality? This is the golden question. Without the ability to weigh the probability of a risk, all risks are measured equally, even though some scenarios are far more likely than others.

In a historical moment where consequences are magnified and resounding, understanding your decisions' risk profile has never been more critical. That's why we developed the CCH Tagetik Smart NOW App for Risk Adjusted Planning.

The App in a Nutshell

CCH Tagetik Risk Adjusted Planning helps you weigh the probability, consequences, and rewards of risks —fast.

Plans and risk are two sides of the same coin. And yet, the problem with many approaches to risk management is that risk planning and strategic planning are treated as separate, siloed processes. Our app brings the two together. You can measure and quantify the potential risk costs, and you can use pre-packaged intelligence to depict your risk exposure, probability, and volatility.

 With the automatic data that populates pre-built templates, you can better assess the risk of a given strategy, determine if you accept the risks, and then plan to mitigate it. Complete with stochastic methods, like the Monte Carlo simulation, our risk adjusted planning app comes out-of-the-box with everything you need to analyze risks and develop complete strategic responses.

Three Reasons to Get This App

Reason One: It Quantifies Your Understanding of Risks

Our app visualizes the impacts and probability of any given risk through pre-built functionality for stochastic methods. Our Monte Carlo engine enables you to model the likelihood of different risk outcomes, determine possible risk correlations, and test assumptions.

Reason Two: It Connects Strategy and Operations to Risk Management

This app bridges the gap between planning and risk management processes. Our app enables you to define your risk strategy by setting tolerances and thresholds and then produce what-if scenario analysis that considers risk exposure. By integrating risk management into the planning process, your plans consider the whole spectrum of risk. You can produce your analysis in the moment because the app uses real-time data to populate your reports.

Reason Three: It Enables You To Accurately and Quickly Assess Business Decisions

Identify, assess risks, and measure the volatility of your business decisions. Our app is pre-configured with all the functionality you need to understand the risks of a strategy based on your existing performance data. Since the app runs on top of your CCH Tagetik data and uses the CCH Tagetik Analytic Information Hub for processing, you instantly populate risk data into simulations, reports, and analysis. What’s more, the app uses dynamic dashboards to illustrate your KPIs and risk data.

The time to gamble on a strategy isn’t now. Know your risks and plan to mitigate them with the CCH Tagetik SmartNOW Risk Adjusted Planning App. As with other solutions in the CCH Tagetik SmartNOW cloud planning app series, this app was developed to help you make better decisions during times of crisis, but also built to get you up-and-running fast and remotely.

Explore its entire range of functionality register to the dedicated webinar here!

Marco Giusti
Head of Product Global Solutions - CCH Tagetik

Marco has more than 10 years of experience in CPM solutions for many industries.

Now Head of Product Global Solutions is leading prepackaged solution development such as

  • Revenue Recognition (IFRS 15)
  • Lease Accounting (IFRS16/ASC842)
  • Account Reconciliation
  • Production Cost Planning and Contro