Portfolio Risk Management

At K2 Integrity, we assist the investment community with insight and transparency into its’ portfolio entities. The development and implementation of a wholistic portfolio risk management program is a valuable tool that is often used both in advance of and after making an investment. We assist in the creation of oversight frameworks and risk management practices to manage key risk areas including those related to financial crime, data protection, governance, employee, and other related individuals conduct, regulatory risk, ESG, and cybersecurity. We employ a multidisciplinary approach which addresses and applies best governance practices and procedures obtained from monitoring experience overseeing complex regulatory regimes as well as years of experience investigating corporate malfeasance, regulatory breaches, and other governance failures.

Unified Risk Management Methodology

Adopting sound risk management practices is crucial to ensure that investments, actions, and processes not only align with risk appetite but are in compliance with legal and regulatory requirements. We help to create comprehensive and standardized risk assessments and management process across diverse portfolios and risk focus areas. Portfolio risk management programs frequently build off enhanced due diligence background investigations designed to capture intelligence specific to identified risk areas. Our teams of investigators and business intelligence specialists are regularly engaged by the investment community, as well as companies and individuals, to gather critical information that sheds light and enables a more informed decision both on value and the associated risk related to a prospective investment, acquisition, merger candidate, or market or the vetting of contractors, suppliers, and consultants for possible legal or regulatory breaches. Our experts are also called upon to conduct pre-employment intelligence gathering on senior leadership, key customers, and suppliers, sanctions lists reviews, reputational assessments, reviews of a merger target’s cybersecurity posture, areas of vulnerability and threats from within. We provide real time, relevant and comprehensive enhanced due diligence that can minimize, anticipate, or avoid enterprise risk.

Specialized Risk Assessments

A critical element of our portfolio risk management programs are risk assessment methodologies which are used to identify, benchmark, calibrate, and ultimately monitor portfolio investments across defined risk areas of focus both for current investments and as the need arises for new investments. Our assessment methodology is based on a systematic approach to risk with applies objective assessment criteria consistent with regulatory guidance and global standards. Our use of proprietary technology platforms enables continuous insight into portfolio company risk as well as ongoing updates into portfolio company risk profiles.

Compliance Program Design

Governance and compliance risk frameworks are also constructed to create programmatic and consistent approaches to portfolio risk management based on best practices for similar entities. We work with clients to develop and implement enterprise-wide plans for operationalizing compliance.