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needs-based commercial infrastructure
The right commercial infrastructure is crucial for your success. But how can you ensure that it meets your actual requirements and is future-proof? Auctoa offers you the right solutions. Need support in assessing your current or planned infrastructure? Contact us for personalized advice.
An adequate infrastructure is crucial for efficient business operations and the competitiveness of companies. Investments in transport routes, energy supply, and digital infrastructure are essential.
Systematic risk management helps to identify potential hazards early and minimise damage. The integration of risk management into the corporate strategy enables proactive responses to changes.
Disruptive technologies such as Big Data and AI offer new opportunities in risk management, especially through more effective risk analyses and personalised recommendations. Companies can increase their productivity by up to 15%.
An adequate infrastructure for businesses is crucial for the success of companies and the appeal of a region. It not only enables efficient business operations but also promotes innovation and growth. But what exactly does this term entail and which aspects are particularly important? Providing such infrastructure is an economic necessity that directly impacts competitiveness while also having social effects by creating jobs and improving quality of life.
Transport routes, energy supply, digital infrastructure, and logistics centres form the foundation of suitable infrastructure. This includes roads, railways, waterways, reliable electricity and gas supply, modern broadband networks and mobile communications, as well as conveniently located industrial areas and logistics centres. It's important to distinguish these from other types of infrastructure, such as social infrastructure (schools, hospitals), to focus on the specific needs of businesses. A well-developed transport connection is essential in this regard.
The creation of such infrastructure is a complex task that requires careful planning and coordination. It is important to understand the needs of businesses and adjust the infrastructure accordingly. This also involves taking future developments into account and integrating new technologies. Forward-thinking planning is crucial to remain competitive in the long term.
A systematic risk management is a key factor for sustainable business development. It helps identify potential dangers at an early stage and take appropriate measures to minimise damage. The aim is not to completely eliminate risks but to monitor and assess them based on data. Risks should only be accepted when adequate compensation in the form of long-term asset accumulation is possible. Therefore, professional risk management is essential.
Rebalancing is an important tool in risk management. Through counter-cyclical rebalancing, risks can be controlled by selling over-performing assets and buying under-performing ones. This leads to portfolio stabilisation and reduces the risk of losses. Neglecting rebalancing can, however, lead to a deviation from the strategic asset allocation and thus to increased risk. It is therefore advisable to always keep an eye on risk tolerance.
There are various approaches to risk management, including active and passive risk management. In active risk management, tactical deviations are made within a defined risk budget, while in passive risk management, continuous monitoring and adjustment of the portfolio is forgoed. Regardless of the chosen approach, it is important to consider the consequences of neglected rebalancing and adjust the risk management strategy accordingly. Strategic planning is crucial in this context.
The regulatory frameworks, particularly the laws StaRUG and FISG, require robust risk management systems. These systems must not only identify risks but also proactively control and manage them. This affects not only publicly listed companies but also private ones. Risk management should be used as a strategic tool for corporate governance rather than just a means of compliance. The legal requirements are therefore a significant driver for establishing effective risk management.
The quantification of risks is of great importance for determining capital and liquidity needs. It forms the basis for risk appetite and the assessment of insurance premiums. Simple formulas such as "probability times impact" are not sufficient; sophisticated mathematical methods are required. A transparent risk culture with clear responsibilities and a role model function of the management is essential for continuous functionality and effective corporate governance. VP Bank relies on a comprehensive risk analysis here.
A functional risk management system allows the adaptation of corporate strategy, business models, and sales strategies based on identified and quantified risks. This enables proactive responses to changes. Additionally, such a system facilitates the analysis of risk scenarios on the profit and loss account, the balance sheet, and the liquidity position, leading to better management decisions. Forward planning is essential here.
The use of disruptive technologies such as Big Data and AI offers new opportunities in risk management. By analyzing large datasets, investment strategies can be optimized and risks more effectively assessed. Automated portfolio monitoring allows for quicker responses to market changes. These technologies help to better assess risk appetite.
Disruptive technologies also enable personalized risk analysis. By cost-effectively analyzing customer data, individual investment recommendations can be provided that take the customer's risk appetite into account. However, it is important that asset managers adapt these technologies to remain competitive. This is particularly important in competition with fintechs. Therefore, investment in Big Data, Blockchain, and AI is essential.
Institutional investors expect asset managers to have technological capabilities and data-driven insights. This also includes improved risk management capabilities. The increasing expectations from clients thus require a continuous advancement of risk management practices. Strategic planning must take these developments into account.
The VP Bank sets high standards in risk management, especially in the area of liquidity risk management. It defines its risk appetite along a risk taxonomy and operationalizes limits and objectives within its risk policy. This demonstrates a structured approach to translating risk tolerance into concrete risk management parameters. The VP Bank undergoes rigorous ICAAP and ILAAP assessments by the FMA Liechtenstein, reflecting a demanding approach to internal capital and liquidity adequacy.
VP Bank maintains an LCR and NSFR significantly above regulatory requirements. This underscores the commitment to liquidity risk management. The ratios of 306% and 157% respectively show a strong liquidity position. Credit risk management is actively pursued, particularly in customer loans (48% of the balance sheet total). A reduction in Lombard loans due to geopolitical factors, coupled with an increase in mortgage loans, indicates active portfolio management in response to market conditions. Forward planning is essential in this regard.
VP Bank uses Value-at-Risk (VaR) as the standard method for measuring market risk, calculated through historical simulation over a period of 5 years. The Market-VaR includes interest rate, currency, equity, and credit spread risks, demonstrating a comprehensive approach to market risk quantification. VP Bank employs a three-lines model for risk management, which separates the functions of risk management, risk control, and internal audit. This structure ensures independence and reduces conflicts of interest in risk monitoring.
Risk management should be viewed as a strategic advantage and integrated into the corporate strategy. This allows business models and sales strategies to be adapted based on identified and quantified risks, enabling proactive responses to changes. Analysing risk scenarios in terms of the profit and loss account, the balance sheet, and the liquidity position leads to informed management decisions. Professional risk management is therefore indispensable.
Operational risk management processes include risk identification and assessment. Both qualitative and quantitative methods are employed, with a focus on key risks. Risk aggregation and control are conducted using Monte Carlo simulations and risk factor models. It is important to also consider behavioural aspects. The risk appetite should always be kept in mind.
Integrating risk management into corporate strategy allows for a better identification and assessment of opportunities and risks. This leads to informed decisions and sustainable value creation. Strategic planning must take these aspects into account.
SMEs often face the challenge of having resource constraints. They lack the expertise and financial means for comprehensive risk management. Therefore, it is important for SMEs to focus on simple, flexible systems that are tailored to their organisational structure. In financial difficulties, it may be necessary to reduce hedging activities to maintain security and liquidity. Forward planning is essential in this regard.
The remuneration systems should incentivise sustainable value creation and align managers' incentives with shareholders' interests. It is important to clearly define risk tolerance to guide decision-making and ensure alignment with corporate objectives. Professional risk management is therefore essential.
SMEs should focus on key risks and implement simple yet effective risk management processes. Risk appetite should always be monitored. Strategic planning must take these aspects into account.
An adequate infrastructure for business and effective risk management are crucial success factors for companies. It is important to follow integrated approaches that link infrastructure planning with risk management, which promotes sustainable business development. Proactive planning is essential in this regard.
Companies and policymakers should invest in future-proof infrastructure and establish robust risk management systems. It is important to adapt to changing conditions and continuously improve risk management practices. The willingness to take risks should always be kept in mind.
Technological innovations and new challenges require the continuous development of risk management practices. Investment in big data, blockchain, and AI is therefore indispensable. Strategic planning must take these aspects into account.
The importance of an integrated view of infrastructure and risk management cannot be overstated. Only in this way can companies be successful in the long term and contribute to the sustainable development of the region. Transport connectivity plays a decisive role here.
The creation of needs-based infrastructure for businesses and effective risk management are crucial for the long-term success of your company. Auctoa supports you with AI-driven evaluations and well-informed risk management in creating such an infrastructure. Learn how to optimally position your company and grow sustainably.
With Auctoa, you receive precise and automated valuations for your real estate and properties. Our unique combination of advanced AI and experienced human appraisal guarantees the highest accuracy and speed in determining the true value of your real estate. Leverage our expertise to make well-informed decisions and optimise your investments.
Key Benefits of Auctoa's Services
Here are some of the key benefits you'll gain:
Precise property valuations: Highest accuracy through state-of-the-art AI and human expertise.
Strategic risk management: Well-informed analyses and proactive measures to minimise risks.
Optimised investment decisions: Data-driven insights for sustainable success.
Invest in the future of your company and secure a competitive advantage through needs-based infrastructure and professional risk management. Contact us today to learn more about our services and arrange for individual consultation. Start now!
The Bundesnetzagentur provides data and reports on broadband expansion in Germany.
The Federal Ministry for Economic Affairs and Climate Action (BMWK) provides information about digitalisation and infrastructure development.
The Deutsche Bundesbank publishes reports and studies on economic topics, including infrastructure investments.
The Institute of the German Economy (IW Köln) offers numerous reports and studies on infrastructure.
What is meant by a needs-based infrastructure for business?
A needs-based infrastructure for business includes transport routes, energy supply, digital infrastructure, and logistics centres tailored to the specific needs of companies. It is crucial for efficient business operations and competitiveness.
What role does risk management play in business development?
A systematic risk management approach helps to identify potential hazards early and take appropriate measures to minimise damage. It enables data-driven monitoring and assessment of risks.
How do regulatory frameworks affect risk management?
Regulatory frameworks such as StaRUG and FISG require robust risk management systems that not only identify risks but also proactively control and manage them. This applies to both publicly and privately held companies.
What advantages do disruptive technologies like Big Data offer in risk management?
Disruptive technologies such as Big Data and AI allow for more effective risk analysis by examining large data sets. They also enable automated portfolio monitoring and personalised risk analysis.
How does VP Bank implement high standards in liquidity risk management?
VP Bank defines its risk appetite along a risk taxonomy and operationalises limits and targets within its risk policy. It maintains a LCR and NSFR that are significantly above the regulatory requirements.
How can SMEs develop flexible risk management systems?
SMEs should focus on simple, flexible systems that are tailored to their organisational structure. It is important to clearly define risk tolerance and align decision-making accordingly.
What role does the integration of risk management into corporate strategy play?
The integration of risk management into corporate strategy enables the adaptation of business models and sales strategies based on identified and quantified risks. This leads to informed management decisions.
How does Auctoa support the creation of needs-based infrastructure and effective risk management?
Auctoa offers AI-supported assessments and sound risk management to support companies in creating needs-based infrastructure. This enables precise property valuations and optimised investment decisions.
