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Risk Assessment in Singapore

Risk Assessment in Singapore

Starting a business in Singapore implies various stages, among which market research and choosing an appropriate legal entity that can prevent financial losses. These enter the category of risk assessment procedures that can be completed by a company owner with the purpose of reducing the probabilities of failure but also increasing the chances of increasing profits.

Risk assessment in Singapore can be completed on multiple levels, however, the financial one is among the most important. Our accountants in Singapore are at the service of business owners who need to ensure the financial stability of their enterprises.

What is risk assessment and how can it help a business?

Risk assessment has various components and companies in Singapore can complete various procedures which imply the verification of financial situations with the purpose of reducing liabilities over loans, assets or investments.

From a financial point of view, risk assessment is important when it comes to investments made by Singapore companies and that could lose their value in a shorter time than predicted.

If you need accounting services in Singapore, our specialists are at your disposal.

The main aspects when it comes to risk assessment in Singapore

The procedures related to the assessment of risks for a business imply:

  • analyzing potential events that can lead to losing assets or investments;
  • checking the risks associated with starting new projects;
  • quantitative risk analysis used mathematical stimulations through which specific values are assigned to investments;
  • verifying the volatility of the market in order to predict as accurately as possible returns on investments can also enter the category of risk assessment.

Companies in Singapore can also evaluate the risks associated with employment, among which the number of workers needed is quite important.

Our local specialists can complete various procedures related to risk assessment in Singapore, based on your company’s needs.

Risks over losing assets and investments of a company

When starting a business, a company will need to have certain assets. Among these, the share capital which can consist in money or tangible and intangible assets is one of the most important. These assets can be lost when decisions that impact the business’ integrity are taken. From this point of view, a correct assessment of the risks incurred by the company is essential.

Risks can be associated with not conducting a thorough verification of the market and competition and not relying on a model that has worked and provided good results. Furthermore, specific investments can also lead to financial losses that can jeopardize the financial soundness of the business can even lead to dissolution.

These are just a few of the reasons why risk assessment in Singapore should be considered from the beginning of the operations.

The procedures through which risks can be reduced can be implemented by local companies but also by branches or subsidiaries of foreign enterprises operating in the city-state. In the case of overseas businesses, it is important to understand how the Singapore market works and its particularities in order to make correct predictions. This is where our accounting firm can assist with tailored advice.

Risk assessments and audits in Singapore

One of the most important tools that can be used in risk assessment in Singapore is an audit. When discussing audits, our specialists do not refer to external ones that are mandatory, but to the following:

  1. internal audits which can be completed in order to verify the financial health of your business;
  2. operational audits in order to ensure that the operations of essential departments are optimized;
  3. compliance audits through which one can make sure his/her company respects the law;
  4. payroll audits can also be completed in order to ensure that employment regulations are respected.

Based on the results of one or more of such audits, various aspects can be improved, and thus, reduce risks.

Our auditors in Singapore are at your disposal with various services.

Foreign investments in Singapore

Singapore is one of the most appealing foreign investment destinations in Southeastern Europe, and according to statistics, in the past few years it has attracted impressing resources, as it follows:

  • in 2018, the city-state had a net inflow of foreign direct investments (FDIs) of 75,954 million USD;
  • in 2019, the number increased to a spectacular 114 million USD;
  • in 2020, FDIs dropped to 90.59 million USD on the background of the health crisis.

If you have a business and are interested in risk assessment in Singapore, do not hesitate to contact us.