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What Is Risk Management And How Can Miami Investigations Help?

What Is Risk Management And How Can Miami Investigations Help?

What Is Risk Management And How Can Miami Investigations Help?In order to discuss risk mitigation and its connection to Miami investigations, we need to first take a look at what risk actually is.  The International Risk Management Institute defines risk as “Uncertainty arising from the possible occurrence of given events.”

While it’s unrealistic to expect to remove one hundred percent of all risks, there are several ways to handle risk.  Lets take a look at how working with Torres Protection Group for Miami private investigations can help to manage your risk.  There are several primary types of risk management, and each relates to the results of using an investigation firm in Florida.

Risk Avoidance And Miami Investigations

Risk avoidance is the practice of actively sidestepping large risks in order to prevent them from causing you problems.  How is risk avoidance related to private investigations?

Let’s say you’re hiring a CFO for your small company.  You’ve found a candidate you like.  He interviews well, he understands your business model, and he has some great ideas for driving revenue and creating value within your company.  You’ve checked his credit, which is excellent, and you’ve had a background check performed which also came back clean, without so much as a littering fine.  At this point, many people would think they’ve done their due diligence on this potential hire, and go ahead and make him an offer.

That would be a fatal error for your business in this example.  What you don’t know, and a standard background check is highly unlikely to reveal, is that your candidate has been wiring substantial amounts of money each month to a company he worked for as CFO five years ago.  In the interview process, the candidate said he left the medium-sized company because he was looking for new challenges and wanted to move to a city closer to his family, now that he had grandkids.  It sounded perfectly reasonable and logical, because he had rehearsed that rather large lie until it felt like the truth to him.

So why is your perfect candidate wiring thousands of dollars every month to a company he used to work for and supposedly left on good terms?  That’s where Torres Protection Group, a Miami private investigation firm, comes in.  Their motto is “protecting your people and your assets,” and in this scenario they’ve saved you a countless amount of time, money, and energy.

After tracking down the ex-wife he neglected to mention to you, TPG finds that your candidate did, indeed, leave his former employer voluntarily, but not because he wanted different challenges or a change of scenery.  The employee background investigation reveals that your candidate actually left that firm under duress, and is making those large monthly payments to them in order to return the three million dollars that he embezzled from them.

Your potential new CFO was a friend of the CEO at his former workplace from back in business school, and somehow this potential employee talked him into allowing the candidate to leave quietly and repay the money.  No records of this exist anywhere, and no standard background check would have found the information.  Torres Protection Group’s Florida employee investigation prevented you from hiring the man who would have quite literally stolen your company out from under you and then disappeared into the night when the books couldn’t be cooked any longer.  Without using TPG to complete an investigation of this potential employee, you would have hired someone like Andrew Fastow or Bernie Madoff.  The cost of an employee investigation was well spent, and you engaged in risk avoidance by gathering the information and choosing not to hire the candidate.

Risk Retention And Florida Private Investigators

Risk retention is the amount of risk that you believe you can handle, and therefore take no action to prevent.  If you were buying insurance, it would be your deductible.  In the case of a private investigation in Miami, risk retention comes into play when you decide that the information gathered is an acceptable amount of risk, and proceed with the action you were going to take, such as hiring an employee.  Perhaps that potential employee has a quiet gambling problem, but he has no access to your company’s money or assets.  You might be willing to retain the risk that comes from his gambling problem, but you can’t make that decision unless you have the information.

Risk Mitigation And Investigations In Miami

Risk mitigation is the process of taking steps to reduce adverse effects.  Let’s say you’re in the process of buying a business, and you want to mitigate some of that risk.  In addition to standard due diligence, you hire Torres Protection Group to perform an investigation of the business.  In the process, you learn that there is a high amount of foot traffic to the retail location of people who don’t appear to have any business there.  They stay for less time than the usual transaction at that location should take, and they never leave carrying visible purchases.  It’s also noted in the investigation of the business for sale that their bank deposits are far larger than the frequency of merchandise deliveries would support.

This pre-purchase business investigation just saved you from buying a retail store that sold very little merchandise and a great deal of high-quality cocaine.  Investigating the business before purchasing it helped to mitigate several risks:

  • Risk of seizure of business and/or assets if law enforcement doesn’t know the business has been legitimately sold to a new owner in an arm’s length transaction
  • Risk of loss of investment because the real business is in far worse shape than the financials suggest
  • Reputational risk of being known to own a business that serves as a front for drug dealing, even though you aren’t involved or even aware of the activity
  • Risk of attempted robbery by a “customer” who isn’t aware that the business no longer keeps large quantities of drugs on the premises
  • Risk to your life and the physical premises of the business from associates, competitors, and/or customers of the drug operation

None of those things are risks you want to take, and no sensible person would purchase the business in question.  But the only way you’re able to mitigate the risk of a business purchase is with a full and complete investigation of the business from a firm like Torres Protection Group.  None of those risks would have been clear from the disclosures, the financials, or even a casual stroll through what appears on its face to be a perfectly normal retail storefront.

Risk Management Through Private Investigations In Miami

As you can see, there are a number of ways to handle and mitigate risk, but in all cases you need to know what you’re dealing with and a comprehensive investigation is often the only way to gain that knowledge.  Risk transference is another common risk management strategy, usually found in the form of insurance.  Someone new to Miami might not insure against the risk of hurricanes because they don’t realize that the risk is present.  By the same token, you can’t hire the right employee or make good business decisions if you don’t have solid information about the risks you face in that decision or action.

Torres Protection group is a Miami private investigation and security firm that specializes in protecting your people and your assets by giving you the knowledge you need in order to make good decisions, manage risk, and respond to a situation before it becomes a crisis and puts you, your assets, or your safety in danger.  With nearly a century of combined military and law enforcement experience, the staff at Torres Protection Group is here to give you the knowledge you need to be protected.


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