GSRMSM PROPRIETARY RISK MODEL
Neo Group Inc. developed this proprietary risk model to Monitor, Predict and Manage global risks. Through extensive research, analysis and experience in the Outsourcing industry, we found out that Global services supply risks can be broadly classified into the flowing categories:-
• Risks at a Country level: These risks exist at a Country level and involve various parameters within elements like Macro-economics, geo-politics, financial, legal, business, scalability, Infrastructure, quality of life etc.
• Risks at a City level: These risks exist at a City level and involve various parameters within elements like Graduate pool, educational institutes, wage levels, attrition, quality of life, etc.
• Risks at a Supplier/ Vendor/ Service Provider level: These risks exist at the services outsourcing Supplier level and involve various parameters within elements like financial, service capability, operating capability, salary levels, quality of human capital, corporate governance etc.
At the Country level , a model was created to identify risk segments and risk parameters that impact on operations risk. We have been able to build a model using 25 risk segments and 250+ risk parameters in eight categories (macro-economic, financial, business, infrastructure, geopolitics, legal, scalability and quality of life). Some of the parameters are:
- Inflation
- Currency
- Fiscal deficit
- GDP growth
- Forex reserves
- Tele-density
- Stock market performance
At the City level, for each city, we created a comparable risk model, using parameters that uniquely contribute to the strengths and weaknesses of the cities. Some criteria are:
- City budget deficit
- Rental rates
- Space availability
- Local taxes
- Lodging costs
- Industry size
- Attrition
- Pool of graduates
- Existing and planned SEZs
- Educational institutes
- Attrition rates
- Wage inflation
At the Supplier level, we created a model to assess supplier risk, again using 250+ parameters across eight categories (financials, clients, people, alliances, services capability, corporate governance, infrastructure, thought leadership). Some important parameters are as follows:
- Operating model capability
- Onsite-offshore composition
- Human resources
- Quality certifications
- Infrastructure
- Profitability and key financial ratios
- Client composition
Data is continuously collected across the various parameters at the Country, City and Supplier levels and analyzed using a proprietary Analytical Engine that can continuously collect data and constantly monitor the three risk categories. The various risks are then identified and categorized using a robust Risk Assessment model . This model also has a built-in Predictive Engine that predicts risk trends, picks up early warning signals, enabling prompt action to avert potential service disruptions and much more. Finally using a Reporting Engine , holistic risk reports are made available in real-time to Global outsourcing and risk managers through the GSRMSM Web-Access. This model dynamically evaluates 500+ criteria and delivers ratings that can be compared across 50 countries, 100 cities and 200 suppliers, helping critical decision-making. |
