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Risk Management Services
Many investments in developing and transition countries entail risks that are difficult for investors to assess. By helping to manage risks, DEG also helps make the most of business opportunities.Thanks to our sound country know-how and decades of experience in handling exceptional investment risks in our partner countries, we are able to take these risks. We also get involved where commercial banks would not venture due to their very cautious risk assessment.We help our partners to cope with risks in an intelligent and professional way and take on responsibility ourselves instead of abandoning the project approach. This also holds for the recent crises in many partner countries.
To identify the risks connected with a foreign investment, DEG has developed a risk management system to make a check and assessment of different factors:
Situation in the investment country
National economic development, political stability, general legal conditions, protection of foreign capital investments, transfer of capital and earnings, etc.
Prospects of the project enterprise
Sales, procurement, production, technology, market, management/organization, personnel, site, finance, cost structure, earning power, environmental viability, social standards, legal affairs, etc.
Project partners
Quality of available technical know-how, industry experience, financial situation and personnel resources of partners, risk spread amongst partners, contractual obligations of partners, possible conflicting interests etc.