GK Standard Bank Integrated (SERP) Note to the user The information supplied in this assessment will not be used by the bank to penalize you in any way (.e.g. it will not be used in the assessment of any facility application). This assessment is intended rather to assist you to identify the areas of risk in your business, and offer advice on how to manage these risks. The information provided by you will also help the bank better understand you as a customer. This knowledge will not only help us serve you better in routine matters, but may also greatly assist in identifying products and services that will help all your stakeholders. Set Desired Risk Threshold (in % terms ) (the lower the amount the higher tolerance of risk, the higher the amount the lower tolerance of risk) Tell us a little about your business What is your busniness' trading name? How is your business or organisation legally structured? * Sole Proprietor/Sole Trader (individual) Partnership A registered company A trust An NGO or public institution or association Micro Business What is your country of origin (or in what country is your head office based)? Angola Botswana DRC Ghana Kenya Lesotho Swaziland Tanzania Uganda Zambia Zimbabwe Malawi Mauritius Mozambique Namibia Nigeria South Africa How many employees in your organisation (employees includes full-time employees, part-time and casual workers/ employees and consultants)? 5 or less 6 to 10 11 to 25 26 to 50 51 to 100 More than 100 How many countries do you operate in? One only 2 3 or 4 5 or 6 7 to 10 More than 10 Do you operate in a single or in multiple industries and businesses? * We are only operate in area We are involved in multiple industries and businesses We are actively looking to get into other businesses and industries New Option How complex/ risky are your business operations (i.e. how complex is the process to deliver products or render a service to customers/ clients), or how reliant are you on key suppliers? Simple and basic Not complex Fairly complex Very complex with multiple dependencies (e.g. heavily reliant on third parties) Do you have established business continuity and disaster recovery plans in place for emergencies or unexpected events e.g. death of a key employee, a prolonged strike, extended power failures, systems outages or failures, major mechanical breakdown, supplier defaults, fire, flood, major accident or explosion? Yes – we have extensive disaster recovery and back-up plans in place To some degree in some areas only None at all How much revenue do you generate (on average) per year? Less than $ 50 000 $ 50 001 to $ 100 000 $ 100 001 to $ 250 000 $ 500 001 to $ 1 mil $ 1 mil to $ 5 mil More than $ 5 mil Please tell us how much revenue (sales) you generate per year (in US Dollars) SetComplexityscore How many years have you been in business? * 10 years or more 5 to 9 years 3 to 5 years 1 to 3 years under 1 year Which statement do you find most applicable (most of the time) in your relationships with your bankers ( and not only Standard Bank/ Stanbic Africa)? Our bankers really understand our business and are like partners to us. Our relationship with our bankers is really excellent We find our bankers don't really understand our business, our challenges and don't treat us like partners. Our relationship with our bankers generally quite supportive, but at times feel they don't really understand our business and needs. While the relationship with our bankers is generally good, it could be better if they took the time to understand us better and/ or behaved more like partners than service providers Our relationship with our bankers is best described as okay. We find our bankers don't really understand our business, our challenges and don't treat us like partners. Our relationship with our bankers is neither good nor bad To be honest, our relationship with our bankers is not good at all. We don't feel they have any real interest in understanding our business and our needs. Our bankers definitely don't behave like partners What of the following facilities or services do you currently use (with a bank)? Credit/overdraft facilities Term Finance Trade finance/ Foreign exchange services Electronic/cell-phone transactional banking services Asset based finance How many banks do you currently deal with (on an on-going basis)? * Only one. Stanbic Two Three Four or more Who is your primary banker? Stanbic Africa Another bank Do you encourage your employees to operate accounts with your primary bank? Yes No Ownership questions How many shareholders/ partners in your business? Only one 2 3 or 4 5 to 10 More than 10 Do you have a shareholders or partnership agreement in place, setting out how the shareholders/ partners agree to grow and support the organisation and matters such as buy and sell agreements? * Yes. We have a very well structured shareholder/ partners agreement that considers all relevant matters, including buy and sell agreements Yes. We have a basic shareholders/ partners agreement, but this is fairly basic and doesn't cover a wide range of topics No Financial questions How strong is your business financially (e.g. having ready access to capital, having strong cash-flow)? Our business is VERY strong financially. Our shareholders and bankers are fully supportive (will provide as much capital or debt as required) and our cash flow is very strong Our business is strong financially. We generally have access to the capital (from our shareholders) and borrowings (from shareholders/ bankers) that we may require and our cash flow is quite/ very strong. Capital/ funding may be an issue if we required a significant amount (e.g. to buy a new business or significant assets). Our business is FAIRLY strong financially. Our shareholders and bankers are generally prepared to support us, but this support is fairly limited. We would probably need to fully motivate a significant recapitalization. We are not very strong financially. While we have enough capital, funding and cash-flow to operate on a routine basis, we would battle to fund (through share capital and debt) a significant expansion We are quite weak financially. We sometimes battle, even with the business as usual (e.g. we sometimes have tight cash-flow). We don't have a strong balance sheet and would need to find new sources of capital and funding, should we wish to grow We are VERY WEAK financially. We don't have a strong balance sheet (capital and funding) and often experience cash-flow pressure and are sometimes unable to meet obligations when they are due. Our shareholders also don't have ready resources to fund our business Is your turnover? Increasing rapidly Increasing in line with inflation Remaining static Declining Don't really know Do you have a comprehensive budgetary process, expenditure disciplines and a focus on profit margins? * Yes – this forms a key dimension of managing our income statement and cash flow. Yes to a degree – competition and cash flow limitations however largely dictate this area. We do budgets as a matter of course but these are largely not adhered to. We do not have a budgetary process at all. Fincontrolcheckscore How would you describe your financial discipline (e.g. budgeting, monitoring financial performance, financial controls (e.g. debtor control))? Our financial discipline is VERY weak. We lack general financial controls, having poor budgeting and performance monitoring. Our financial discipline is weak. We do have some policies and processes (e.g. on budgeting or monitoring performance) but need to improve our financial discipline. Our financial discipline is reasonable. We do have processes to do budgeting, monitor performance etc.. It does need to improve though Our financial discipline is quite strong, with good practices and policies around budgeting, reporting, financial controls, Our financial discipline is VERY good. Our financial controls (from budgeting to reconciliations and monitoring financial performance) are one of our real strengths and we have never had a serious problem in our financial department Weak financial discipline is probably the single biggest risk facing most businesses. You are strongly encouraged to focus on improving your financial controls (e.g. budgeting, debtor control and reporting) without delay How capital intensive is your business? Extremely. Our business and industry is VERY capital intensive (e.g. we have massive investments in equipment, debtors and general working capital) Fairly. Our business and industry has reasonable investments in equipment, debtors and general working capital etc. Not very. We don't have massive capital needs (e.g. don't invest that much in equipment, debtors and general working capital etc. Not at all. We hardly require any capital as we hardly require any plant and equipment, stock, debtors etc. Does your business need to own significant fixed assets (e.g. machinery, equipment, vehicles or property) in order to operate? Absolutely. We are required to own a lot of fixed assets (to operate our business), and it requires a massive capital investment. Our investment in fixed assets is far greater than our investment in current assets (e.g. stock or debtors) To a large extent. The nature of our business requires us to invest quite a bit in fixed assets. Our investment in fixed assets is greater than our investment in current assets (e.g. stock or debtors) To a degree. The nature of our business requires us to own a fair amount of fixed assets. While this investment is significant, it is probably similar to our investment in current assets (e.g. stock and debtors) No. Not really. We own some fixed assets, but this investment is not excessive (e.g. fixed assets are less than current assets) No. not at all. Our business has a very small investment in fixed assets, and is typically much smaller than our investment in current assets (e.g. stock or debtors) Does your business need to hold significant current assets (e.g. raw materials, stock, work in progress or debtors) in order to operate? Absolutely. We are required to hold a lot of current assets (to operate our business), and it requires a massive capital investment. Our investment in current assets is often greater than our fixed assets (excluding property) To a large extent. The nature of our business requires us to invest quite a bit in current assets To a degree. The nature of our business requires us to own a fair amount of current assets. While this investment is significant, it is probably similar to our investment in fixed assets (e.g. equipment or machinery) No. Not really. We have some investment in current assets (e.g. stock or debtors), but this investment is not excessive and are less than investment in fixed assets No. not at all. Our business has a very small investment in current assets How prevalent/ common is credit (payment terms offered to customers) in your industry? Extremely. By far the majority (more than 80%) of industry sales are on terms (credit). Not offering credit/ payment terms to customers makes it almost impossible to operate meaningfully in our industry Very. A very significant proportion of industry sales (between 60% and 80% of sales) are on credit/ payment terms. Fairly. While credit/ payment terms are fairly common in our industry (probably roughly 40% to 60% of sales), it is not critical to offer credit/ payment terms Not very. Credit sales/ payment terms are relevant in our industry, but probably account for 30% to 40% of sales. It is possible to operate successfully without offering credit/ terms. Very little.. Credit/ payment terms are fairly limited in our industry, with only 10% to 20% of sales probably on terms. Not at all. Almost none of our industry sales are on credit or terms (probably less than 10% of sales). Does your organisation or business handle significant amounts of cash? Yes No How is your business funded between shareholder/ partner funding (e.g. share capital, reserves and interest free shareholder loans) and interest bearing debt funding (e.g. overdraft, term loans from banks, debtor financing)? By far the majority (80% or more) of our funding is from shareholders Most (60% to 80% or more) of our funding is from shareholders, with the balance (between 20% and 40% being debt funding Our business funding is fairly evenly balanced between shareholder fundign and debt funding, with 40% to 60% funding from shareholders Most (60% to 80% or more) of our funding is from interest bearing debt (borrowing) with the balance (between 20% and 40% being funding from shareholders By far the majority (80% or more) of our funding is from debt funding, with less than 20% of funding from sahreholders Strategy What are your realistic growth objectives over the next few years? We intend to grow aggressively over the next few years We intend to grow quite rapidly over the next few years (far faster than the market) We plan to grow at a reasonable rate over the next few years (probably a little faster than the industries we operate in) We don't expect to grow much over the next few years or expect to remain roughly where we are We think it likely that we will shrink (get smaller) a little over the next few years We expect to shrink quite rapidly over the next few years (e.g. if your industry is contracting rapidly and you don't plan to diversify) How does the environment (e.g. climate change, extreme weather, availability of water resources and scarce raw materials/resources) impact your industry or business? Very big impact Don’t know at this stage – too early to assess the potential impact No – not at all Have you assessed the physical threats to your business? * Yes No How would you describe the prospects (outlook for the future) of your industry/ the main areas in which you operate? The outlook for our industry is VERY difficult. We expect very difficult future in which the general market will contract quite significantly (e.g. because of new products and services entering our space). we will need to find new markets to offset the weak market. Our industry faces a difficult future. We expect our industry to contract (get smaller) and/ or for sales and profits to be under pressure. Our industry outlook is okay. Demand for our products and services are fairly steady, but there is very little growth. It will be difficult to grow our sales much and may even find it difficult to grow profits The outlook for our industry is GOOD. Our industry is growing . We expect our sales to increase nicely, with profits driven by our ability to compete effectively (e.g. by keeping costs down) Our industry is looking VERY Good for the next few years. Sales and profits are expected to increase at a good pace How does the socio-economic environment (e.g. economic growth, the level of employment, inflation, political risk) impact your business/ industry? Not at all. Our industry/ business is largely immune to changes in the socio-economic environment Not very. While big changes have a slight impact on demand for our products and services, this impact is limited It has a modest impact. Higher inflation or slow economic growth for example do have an effect on demand for our products and services The socio-economic environment has a significant impact on our industry/ business. Our industry is probably more exposed than most to changes in the economy It has a massive impact. Demand for our products and services depends heavily on the economy Where you operate or rely on markets outside of your home country, how vulnerable are you to potential political risk, regulatory risks and instability in these markets? Very – we are very exposed to risky markets To a large degree – we are exposed to some volatile markets To some extent – most of our markets are stable and predictable Not at all – we are operating /trading in very low risk markets How important is reputation to your business/ industry? Critical. A good reputation is critical to operating effectively in our industry Having a good reputation is important in our industry. A questionable or damaged reputation makes it difficult to operate in our industry Fairly important. Not very important at all. Reputation doesn't make much difference in our industry, for example as the number of competitors is limited or everything is about price and the ability to deliver Not at all How vulnerable are you to crime? Very To some degree Not at all How important is technology (e.g. IT, systems and telecommunications) to your business? EXTREMELY. We are almost totally dependent on technology, for everything in our business (e.g. much of our sales is through digital channels/ the web). Our business cannot function at all without access to our technology systems Our business is VERY dependent on technology. We probably couldn't function properly without access to our network and systems Fairly. We are increasingly using technology in most areas of our business Somewhat. We are using technology more, but are not heavily dependent on it, such that we could actually operate for a short time if we lost IT systems Not at all. We hardly use technology at all, and could function quite well if we didn't have access to the internet etc. for a while. How important are staff (people) to your business (e.g. how important is it to have skilled people in your business)? EXTREMELY important. Our business relies totally on having highly skilled and able staff throughout the business. Our business cannot function with good staff. Attracting and keeping top calibre staff is a top priority for us. Very important. Our business does need quality staff to operate properly, but there is a fairly large pool of good people we can draw on. While attracting and retaining top quality staff is important, it is not our top priority Fairly important. It is important for us to have competent staff, but the skills required are not highly technical or unique. We are generally able to attract and retain good staff, and don't see our people as our top priority Not terribly important. While having good staff is always good, our business or industry isn't dependent on highly skilled or technical people. We find it easy to attract and retain suitable staff Not at all critical. Our business doesn't depend at all on having top quality staff, as we don't make extensive use of people in our business, and/or have low level needs (i.e. skill requirements are very low) Do you have robust HR Processes and disciplines in place e.g. recruitment, disciplinary, performance, remuneration, payroll? * Yes we have comprehensive policies and processes. We have policies and processes but these are often overlooked or bypassed. No we have no formalised processes in place. Do you have robust IT controls and disciplines in your business? Yes, absolutely. We have made security and in particular IT security and cyber-crime a core strategic focus of our business and an integral part of our risk management process. Yes, we have an IT governance framework with robust IT policies and data controls, a data security manual and comprehensive system protocols in place. Yes, while we follow tried-and-tested IT best practice policies and procedures, and these are aligned to the overall governance policy of our business, we still seem to be behind the curve. To a limited extent. While we have some controls (e.g. anti-virus software, patch updates, physical security, firewall and password controls) to protect our IT systems, we lack an integrated policy to ensure overall IT security. No, we have almost no real IT security policy or IT controls/discipline, OR find that policies (e.g. password changes and data back-up) are not followed by staff. No, we have no controls or disciplines in place. How important is good governance, regulatory compliance and having a solid legal basis to your and is there a culture of risk management and good governance in your business or organisation? Not at all. It is frankly an area of weakness and needs attention. Not very important. We do the minimum Somewhat. We recognise the importance of doing the right thing and try to comply, but this needs more work It is important and we do generally have good governance and comply with relevant regulations and legislation Good governance and regulatory and legal compliance are extremely important to us. I would see this as an area of strength in our organisation. How good is your legal compliance (e.g. being compliant with laws of the land)? Very good – we comply with all relevant regulations To a large degree – we try to be compliant as best we can but still fall short in some areas To some degree – we focus on only those areas of the law that might impact us Not at all – we are totally non-compliant What facilities or services do you enjoy with Standard Bank /another bank? Credit/overdraft facilities Term Finance Trade finance Electronic/cell-phone transactional banking services Foreign exchange services Asset based finance None of the above. None of the above/bank account only Have you completed the bank's customer regulatory and compliance requirements e.g. KYC or FICA? * Yes Yes - but with a competitor bank/s. No What is the nature of your core business offering? * Services Products Products and Services How many key individuals are there in your business? * 1 2 Less than 5 Over 5 What age are the key people in your business? * Under 35 35 to 50 50 to 65 Over 65 Do you have a buy and sell agreement in place with your partner and/or other key shareholders? * Yes No How many countries/markets do you operate or trade in? * Just our home market 2 3 to 5 More than 5 General Score General Governance What is the level of governance and risk management in your business e.g. code of good governance, risk culture, board/committee oversight, minutes and resolutions, controls and disciplines, code of conduct, ethics/values, accountability, risk champion? * Non existent. Some basic measures and controls. Fair amount in core areas. Comprehensive. Do you have robust controls and procedures in place in all the key areas of your business e.g. HR, IT, Operations, Administration? * Yes and strictly enforced. Yes but not enforced and/or often bypassed. No, we have nothing in place. General Governance Score Socio Economic Have you taken any specific steps e.g. insurance, to cover trade and cross border risks? * Yes – we have the necessary insurance in place and structure our trade transactions optimally. To a degree – we take ad hoc precautions and measures from time to time. No – we are not organised in this area and have no structured approach. Do you continually assess the socio economic and political risk in all the countries/markets you operate in e.g. economic fundamentals, terrorism, political stability? * Yes - we are very conscious of country, counterparty and payment risks in all the markets we operate in. We take some precautions for cross border transactions but these are limited. No - we have not considered these risks at all. Socio Economic Score IT/Technology Do you have back-up power (ups) in place to ensure continuity of operations and integrity of transaction records in the event of power outages or other disruptions? Yes No Are you vulnerable to the collapse, failure or unavailability of your IT, operational or telecom systems due to e.g. insufficient broadband, the theft of computers, loss of data lines, network failure, collapse of your servers/website/hosting service, cybercrime, or to the loss, theft or corruption of data? Yes we are very vulnerable in this area as we have no contingency plans Yes to a large degree To a small degree – we have some contingency plans in place but these are not comprehensive No not at all – we have comprehensive back up processes and systems in place Do you have qualified staff to support and maintain your IT systems? Yes – we have qualified dedicated staff to ensure continuity and support of our systems Yes to a degree – we are reliant on outsourced service providers for our support No – we are reliant on ad-hoc third parties to support us Are your IT controls and disciplines strictly enforced? Yes – very strictly Yes to a degree – but we often bypass or over ride controls No - not at all Do you ensure that you update your virus protection or anti-virus software, personal firewall software and other associated security controls on a regular basis and that you have no weak configurations in place? Yes – we pro-actively attend to all these elements Yes to a degree – but we are not pro-active in all areas No - we are very slack in this area and are vulnerable as a result Do you ensure that you only make use of licensed software? Yes No Is there a culture in your business that endorses IT security, operator and system access control, password controls, data back-up, email management and cybercrime awareness? Yes, absolutely. We have been proactive and have put preventative measures 24/7 in place around a variety of potential attacks to our business coming across multiple channels not just e-mail, including theft of computers (laptops/tablets/desktops), encryption of sensitive mails/records, cyber fraud and have issued best practice guidelines to customers and staff. Yes, to a large extent. As part of our HR employee induction programme and on-going staff education and training, a specific focus is placed on security, IT security, IT disciplines, data back-up, password controls, cybercrime awareness, social media and internet usage and the threat of data theft, hacking, phishing, impersonation, sabotage, ransomware and malware. Yes, we ensure that the confidentiality of all passwords and password disciplines are tightly maintained, that strong passwords are used and that these are regularly changed by users. We ensure that all departing or suspended employees are immediately removed from access to all systems. Yes, to a degree. Levels of accessibility to all our vital hardware systems, programs, drives, servers and files and banking systems are controlled by passwords or other similar security measures. No, not really. Other than for the use of basic anti-virus software and firewall controls, we have not taken any specific security measures. IT/Technology Score Strategic Do you have a clear strategic vision and objectives for your business? * Yes Yes to some extent No What support do you get from Shareholders, Partners or Trustees? * Our shareholders/partners are distant and won't provide more funding or capital and we must stand on our own feet. Our shareholders/partners will provide support (e.g. capital) if they must. This support will however be limited. Our shareholders/partners are totally supportive of the strength and growth of our business and will (and have) provided whatever is required to ensure the success of our business. I/We are the only shareholders/partners and are fully committed to the business but have limited capital to invest. Our shareholders will only provide guarantees/ suretyships If you have a partner or co-shareholder do you have a comprehensive shareholder's agreement in place and have you taken out the necessary insurance (e.g. personal indemnity, public liability, key man etc.) Yes, all agreements and insurance are in place Yes, to some degree No, we do not have agreements and insurance in place Which statement best describes your experience around the services/ products you offer? * The market for our traditional products/ services is rapidly shrinking and our revenues are under massive pressure. Our traditional market segments are slowly shrinking or experiencing a lot more competition or downward pressure on revenues and charges/prices. Demand for products/ services are largely steady and there is not great pressure on revenues, charges or prices. Our traditional market segments are growing and/ or our pricing/charges/fees are increasing. How vulnerable is your industry to change/disruption? * Unlikely as we are in very traditional products and services and/our products and services are unique Vulnerable to a degree but we focus on being innovative and /or being up with the latest technology Vulnerable in a number of areas as new competitors enter Highly vulnerable to technology changes, automation and new innovative digital products and services Not sure How diversified is your business in terms of products/services, markets, customers and sales mix? * Very - we see the need to continually add new services/products and grow our customer base as a top priority and this is a continual area of focus We have a limited range of products and services but are growing our customer base We have a limited range of products and services and/or customer base We have a very limited range of products and services and/or customers We have only one product or service and/or very few customers Before you enter into any projects, tenders, contracts, supply or sale agreements have you assessed the potential impact on your business e.g. funding and resourcing requirements, risks involved, your ability to perform as required, cash flow implications and the likelihood of getting paid as and when payment falls due? Yes – this forms an integral part of our decision making Yes to some degree No – we have no structured approach to these aspects and elements Strategic Score Financial Control Who looks after your financial management? * We have a suitably qualified full time accountant/financial manager. We have a part time accountant/financial manager. We have a qualified bookkeeper. We have a bookkeeper who is not qualified We don't have any qualified financial manager/ accountant or financial manager How actively do you monitor your debtors (e.g. checking for arrears, checking for accounts staying within credit limits, watching for concentration risk)? We are very weak in monitoring our debtors. It is almost never done We are quite weak at monitoring our debtors. It is not done regularly enough and we generally only look at it when we have a problem We are fairly good in monitoring our debtors. We do it quite often and do it fairly well We are good at monitoring our debtors. We do it often, look carefully at the debtors concentration, trends etc. Our debtors monitoring is excellent. We constantly monitor our debtors book and take action very quickly if we see or suspect a problem How good is your financial reporting (e.g. getting up to date management accounts)? Excellent. Management always know exactly where we are Good. Management generally get accurate information on time, but there are times where information is slow not not 100% accurate Reasonable. Management normally get the financial information they need, but there are times where this information is slow, inaccurate or incomplete Not great. Management often don't get the financial information they require when they need it or it is not very accurate Very weak. Management almost never get the financial information they need in time and/ or get inaccurate or incomplete inforation Do you actively manage the risk of handling cash? Absolutely. We make a concerted effort to minimise the risks of cash, both in avoiding loss (theft), but also the other risks (e.g. the risks to employees and clients) Fairly actively. We do try to prevent any loss through the theft of cash (e.g. with processes to monitor cash and remove excess cash from our premises), but could do more, especially to limit the other risks (e.g. potential harm to staff) Not very actively. We do the basics (e.g. recording and monitoring cash), but should do more, both to prevent losses and potential injury to staff and clients Not at all. We don't do much to minimsie the risks of loss/ injury relating to handling cash. We have had problems in the past Which of the following financial controls do you actively apply? * Segregation of duties (e.g. the person loading a payment can't release the payment) Banking system controls (e.g. strict password control, requiring multiple signatures or releases)). Cash flow monitoring and forecasting Regular monitoring and reconciliation of accounts (e.g. debtors control and bank) Regular management accounts showing performance relative to budget How financially sophisticated is you/your management e.g. level of financial literacy and financial knowledge? * Highly sophisticated. Quite sophisticated. Fairly sophisticated. Unsophisticated. Do you carefully monitor and manage your assets (fixed assets and current assets)? * Yes very much so. We see management of our assets as critical to the success of our business. We do, for example routinely check up on the condition of our assets (e.g. to prevent damage or breakdowns), have a detailed asset register and ensure that all stock is secure and sale-able and /or debtors collectible. Yes. To a large degree. We do keep a fairly close watch on our assets, such as checking the condition of assets nut need more focus here Not really. We keep an eye on a few keys assets (e.g. more expensive equipment) but don't really actively monitor our assets Do your banking controls include (indicate): * Tight control of pins and access codes Payment/beneficiary authentication and authorisation, dual release/dual signatory controls Enforcement of strong passwords SMS advices and active monitoring of accounts Cybercrime awareness, anti virus and patch updates Staff lifestyle monitoring None of the above. Have you suffered any financial losses as a result of theft (whether your own employees or external people) in the past year? * Yes No Was this loss significant such that it impacted your business operations? * Yes significantly To a fair degree No Do you have suitably qualified external accountants or auditors? * One of the biggest, most reputable professional firms. A reputable, mid-sized professional firm. A fairly small, professional company. An individual who renders independent services. A small independent company that offers accounting services. We have nothing formalised/our accounts remain unaudited. Are your tax affairs up to date? * Yes No Financial Control Score Credit Extension Do your processes include documentation and agreements, management reporting systems, supporting infrastructure, working capital to fund debtors, collections and support processes to handle arrears and legal actions? Yes – we have ensured that the funding and all the required processes and support systems are in place Yes to a degree but we remain vulnerable No – we do not have the required support processes in place Credit Extension Score People/HR Do you have key people that you are heavily reliant on for the running of your business and succession plans in place in the event of the loss of key people? * Yes and succession plans are in place Yes, to a degree No not at all Do you have key-man and/or medical/disability insurance in place for them? Yes No Do you have appropriate levels of skills in your business to compete effectively? * Yes We don’t know what the future may hold or what skills we will need. No – we lack appropriate skills to compete effectively. Do you have a robust interviewing and vetting process (hiring system) before you employ staff as it relates to independent background checks, checking of employment history, criminal checks and verification of identity and qualifications? Yes – we have comprehensive interviewing and vetting processes in place that are strictly followed Yes to a degree – we have processes in place but these are not always followed We rely on outsiders or recruitment agencies to do this No – we have no formalised recruitment or vetting processes in place Do you know if you have any high risk employees in your employ e.g. staff suffering from debt problems, addictions or other problems? * Yes – we monitor staff behavior and undertake regular life-style checks To a degree – we do monitor staff for adverse behavior No – we have no idea and have no processors to monitor this Do you have comprehensive employment contracts in place for all staff and employees e.g. terms and conditions of employment, job descriptions, key performance areas, code of conduct, conflicts of interest, use of social media, internet and e-mail? * Yes – comprehensive contracts are held for every employee Yes to a degree – we only have these for senior employees Yes - but just very basic contracts No - we do not have any formal contracts in place Is the health and safety of your employees of the utmost importance to you? * Yes – we have a culture of safety in our business and this is strictly enforced Yes to a degree – we try and follow this but we do not always have the appropriate safety equipment , safety processes and procedures in place No – we employ mainly casual labour and have not concerned ourselves with this No - we have not made this a priority at all What is the general state of labour relations in your business? Very good – we have low staff turnover and enjoy high productivity and loyalty from our staff Average – we experience staff problems from time to time Very poor – we continually have labour unrest, work disruptions and/or suffer from high staff turnover Human Resources Score Regulatory/Compliance/Legal As part of good governance do you send out signals of effective control, risk awareness and accountability in your business or organisation? Yes To some degree No not at all What is the level of regulation in your industry? * High Not too severe Moderate Likely to change Non existent/unregulated Do you have good documentation and contractual controls in your business or organisation? * Yes - our contracts and agreements are all contained in enforceable contracts that are actively managed and are safely stored. Yes to a degree - only where we are forced to enter into tenders or contracts by major suppliers or customers and employee contracts. No we have many arrangements which are not formalised and are vulnerable to a number of contracts and agreements and/or verbal arrangements. Our records and documentation are in a complete mess and we have virtually no contractual controls Do you have any Intellectual Property? * Yes No Is your Intellectual Property adequately protected? * Yes - we have taken steps to protect our IP/designs as best possible. Yes but we have not taken any steps and are vulnerable in this area. Are you managing the level of legal and documentation risk in your business or organisation that could result or arise from claims, fines, contracts or agreements? Yes No Regulatory/Compliance/Legal Score Balance Sheet How well capitalised/ funded are you currently (e.g. do you have enough cash & capital to trade comfortably)? * Very – we have more than sufficient capital (and other funding available) to trade even when upsets happen (e.g. disruptions to operations or large bad debt) Well - we have adequate capital and funding available to trade through most tough times. We could however have a problem in a situation where we were were unable to generate income for a period or had an excessive shock (e.g. a massive bad debt) Reasonably - we generally have enough capital/ funding available to operate normally, but have had the odd problem in the past when we had found we urgently needed to find extra capital or funding Not very well - we don't really have adequate capital and funding available. we often find ourselves trying to find extra funding or having to juggle debtors and creditors (e.g. paying creditors a little late) Very poorly- we almost always have problems with capital and funding and often find ourselves struggling just to get through difficult months. We really need to find new capital or credit facilities Do you think you have access to enough capital/ funding to achieve you strategic growth objectives? * Yes – we have access to all the capital and other funding we will need to grow as planned Yes, to a large extent - we have access to most of the capital/ funding we expect to require (to achieve our growth targets), but may need to arrange for more/ give this more attention than we have To a degree - we are loosely arranged some of the capital/ funding we will require to grow, but will need to access more funding/ refine these plans No not really - while we have access to some capital/ funding, this is probably quite a bit less than we expect to require and/ or haven't really formalised these plans/ funding No, we don't - we haven't realistically got access to the capital/ funding that we would require to grow as we plan How reliant are you on banking credit facilities (e.g. overdraft, short term loans)? * Extremely. We are heavily dependent on our banking facilities and often fully utilise our credit lines Very Fairly Not too much Hardly at all/ not at all Does the utilisation of your overdraft or credit facility fluctuate? * Yes - widely in line with our cash flow. No - it is always fully drawn down/and/or is hardcore. No - we are always in excess of agreed limits. How comfortable are you with the overall level of debt in your business? * Very comfortable - debt management is a priority for us, along with a keen focus on liquidity and solvency. We are very comfortable with our debt levels and are confident that we will always be able to service our debt (interest) and repay debt when it falls due Quite comfortable. We manage our balance sheet carefully, and are very aware of the need to have adequate liquidity and are generally confident that our debt levels don't create any solvency issues. We are confident in our ability to service debt and repay maturing debt Fairly comfortable. We generally manage our debt fairly well, to ensure no liquidity or solvency issues, but have at times felt a little under pressure (a little over indebted) Not very comfortable. While we monitor our debt position, there are times when we feel pressure to service debt and/ or fear debt maturities. We probably need to focus more on debt management and the impact on our balance sheet Very uncomfortable and vulnerable Do you manage all the fixed assets (equipment, machinery, vehicles etc.) and current assets (materials, stock, debtors and cash) used in your business as productively and effectively as possible? * Yes - we focus on asset management, productivity, efficiency and look to optimise working capital at all times. To a degree – we do focus on cash flow management but could do more. No we have no management focus in this area /assets are often idle and/or we have a lot of obsolete stock. Are the assets of your business fairly valued, adequately secured, protected and insured? Yes- our assets are all involved in the production of income, are conservatively valued and we focus on visible security and insure all our assets. Yes to a degree – we have limited insurance but need to manage/protect our assets better. No – we are weak in this area and have unaccounted for and undocumented assets. Are the assets of your business unencumbered? * Yes - our assets are all unencumbered. Yes to a degree – we have bonds over our fixed property and/or some of our moveable assets e.g. vehicles are encumbered. No – the majority of our assets are encumbered, pledged or ceded to credit providers. Our assets are all encumbered and/or there are liens over our stock. How strong is your cashflow? * Our cash flow is positive at all times. We always have excess cash on hand Our cash flow is very cyclical and predictable. We generally have all the cash we need Our cash flow is fairly predictable, but there are times when we run low on cash (e.g. over year end or over the Christmas period) Our cash flow is quite often a problem and unpredictable. We quite often have a cash crisis and need to secure extra credit quickly We have a massive cash flow problem. We almost always battle to make payments. We urgently need to find new capital or funding Does your business have any contingent liabilities e.g. guarantees issued, claims outstanding, legal obligations ? * No Yes Balance Sheet Score Income Statement How is your profitability and margins? * Profits and margins are rising rapidly and we have grown our clients base. Overhead costs have remained consistent. Profits and margins have improved over the past few years but not by very much. We are growing income faster than costs. Profitability and margins are largely static. While revenue has increased, so too have our expenses. Profits and margins have been under significant pressure. Income is under pressure (e.g. due to competition) and expenses are rising quickly. We are now consistently running at a loss How would you rate your average profitability (charges to clients)? * Higher than the market. Pretty much the same as the market. Below the average of the market. Do you have the expenses of your business under control? Yes - we manage our expenses very tightly against our budget and available cash flow Yes to a large degree – we manage most expenses tightly but some are beyond our control e.g. interest Yes to some degree – we try to control our expenditure but some areas e.g. salaries/overtime are out of control No – our expenses are totally out of control How sensitive is your business to interest rate movements? * Very – we have consistent high debt levels and are highly vulnerable to escalating interest rates. In order to grow our business we will need more debt and will become increasingly vulnerable. No not at all – we have minimal debt and credit facilities. How sensitive is your business to exchange rate volatility? * Very – we import significant amounts and are highly vulnerable to exchange rate weakness. Yes to a degree – we rely on inputs linked to global commodity prices/and or import a fair amount of products/raw materials. No not at all – our cost base is predominantly in domestic currency. Are you able to manage your cash flow on a daily basis? Yes – our cash flow is largely predictable and this dictates most of our business decisions Yes to a large degree – we are able to control most aspects but there are always unexpected expenses Not really - there are so many variables in our business that we are not easily able to manage this area No – we have no control over our cash flow and permanently have issues around this Income Statement Score Operational Have you done a detailed assessment of the operating risks facing your organisation? Yes No Are all your work processes adequately documented, robust and repeatable and are your documentation processes and procedures standardised? Yes – these elements are entrenched in all our operational areas Yes to a degree but not in all areas of our operations No – we have nothing documented, formalised or standardised Are these processes and procedures entrenched and enforced? Yes – this is consistently done Sometimes No not at all Do you have controls and procedures in your business to mitigate risk and potential losses and do you have strict control procedures in place in respect of exception processing and the over-riding of controls? Yes -we have well documented levels of authority, controls and exception processing procedures in place which are strictly enforced Yes to a degree - we have procedures and checks and balances but these are not always adhered to enforced No we have few controls in place and no procedures around exception processesing Are you heavily reliant on third parties to deliver your products and services to your customers? Yes - we are heavily reliant on external parties to deliver our products and services. Yes to a degree – we have outsourced a few elements of our business e.g. distribution, delivery. No – we control all key dimensions of our service and product offerings. Have you considered all the risk implications of this and have you evaluated the capability, reliability and credibility of all these parties? Yes - we do this on an on-going basis Yes to a degree – we have no formalised process around this aspect and do it ad-hocly No - not at all Do you regularly review your supply chain management and procurement process to ensure that the laid down process and procedures are being adhered to and that suppliers continue to meet laid down requirements? Yes - we follow a regular formal review process Yes to a degree - we monitor some performance ad-hocly No Are you involved in any contracts, tenders or supply agreements? * Yes No Are you very vulnerable to the cancellation, curtailment or non-renewal of contracts, supply agreements, agencies or licensing agreements? * Yes – we are highly vulnerable in this area. Yes to a fair degree – we could be fairly vulnerable as a fair amount of our business is generated through contracts, supply agreement and/or the distribution of licenced products/services. No – we are not exposed at all in this area. Do you have robust controls and procedures in place in all the key operational areas of your business e.g. HR, IT, Operations, Administration? Yes and these are strictly enforced. Yes but these are not enforced and/or often bypassed No, we have nothing in place Operational Score Fraud/Theft and Criminality Are you operating in a targeted industry or business Yes To some degree No not at all Is your business or industry vulnerable to illicit goods, corruption and criminal behavior? Yes Yes to a degree No not at all Have you during the past 5 years had any major loss as a result of fraud, theft or claims made against you for damages or non performance arising out of activities/services you have performed or products provided? * Yes No Do you have a zero tolerance to fraud, criminality and corruption? * Yes No Have you taken pro-active measures to improve your security and controls? Yes, we use technonolgy wherever possible and measures are strictly enforced Yes, but these are not enforced No, we have done nothing/having nothing in place Fraud/Theft and Criminality Score Reputation Do you have a code of ethics and good conduct particularly as it relates to fairness to customers? * Yes No Are you managing your customer communication and your social media? Yes - we do this in a very focused on-going basis Yes to a degree - we are not consistent here No not at all Do you place a high value on your brand, image and reputation at all times Yes Yes to a degree but we are inconsistent here No Reputation Score Environmental and Physical How vulnerable is your business to the impact of climate change e.g. available water resources and extreme weather? * Yes – very. Don’t know at this stage – too early to assess the potential impact. No – not at all. How sustainable is your business in respect of the reliance on/availability of and use of scarce raw materials or resources? * Yes – we are not reliant on any sensitive or scarce materials or resources. Don’t know - we are not sure of the sustainability of supplies or raw materials or scarce resources. No – not at all as we are totally reliant on scarce or environmentally sensitive materials. Do you ensure that you are complying with the required legislation, standards and environmental controls with regard to emissions, air and water pollution, water and power usage, treatment or removal of waste or hazardous materials, recycling of oils, dumping of waste materials, dumping of chemicals and pollutants and the use of scarce resources? We are fully compliant and try at all times to be good environmental citizens We are compliant in some areas We are not compliant at all Do you have appropriate and adequate insurance/ assurance in place for liability, loss, theft or accidental damage covering buildings, stock, equipment, electronic equipment, glass, movable assets, key personnel etc in the event of accidents, natural disasters (fire/flood/earthquakes/landslides), emergency/catastrophe, major claims or loss? * Yes – we take appropriate insurance to cover the key risks facing our business. Yes to a degree – we take the minimal insurance cover largely to cover natural disasters. No - we see insurance as an unnecessary expense. Is your business vulnerable to natural disasters such as fire, floods, winds and earthquakes and to operational accidents or losses? Yes - by virtue of our businees operations and /or locality we are highly vulnerable Yes to some degree in some areas and/or localities No - not at all Environmental and Physical Score Overall Score Checkboxes Option 1 Option 2 Paragraph If you are human, leave this field blank. Submit
