Risk Management

Risk management has been embedded within the culture at NDF, so the company is committed to managing and optimizing risk considering to achieve the return.

The complexity of today’s risk and regulatory environment is unprecedented. The COVID-19 pandemic has accelerated the speed at which risk events occur and the extent to which they spread. Risks that once seemed remote and improbable have become the norm. Business leaders everywhere are preparing to ‘expect the unexpected’, and NDF is doing the same. It is easy to see why many decision-makers view regulatory change as a burden—a necessary cost of doing business. However, companies that thrive in the new reality do not see it as a hurdle. They use risk and regulatory change as a means of accelerating business transformation. An integrated perspective on risk, regulation and compliance is key for building resilience, trust, and competitive advantage.

We, at NDF, look at risk and regulation differently and shape our businesses accordingly. As an owner investor, we maintain full flexibility to deploy capital across listed and unlisted assets and adopt a long investment horizon. We do not have limits or targets for asset class, sector, theme, or single name concentration. We manage our leverage and liquidity conservatively for resilience and flexibility, even in times of extreme stress.

NDF's Risk Intelligent Approach

Risks are inherent to investments. Whenever NDF invests, divests, or hold assets, it also stays committed to tracking and managing risks proactively and throughout market cycles. NDF brings together experience across risk, regulation, tax, controls, compliance and more to help portfolio companies to navigate one or all of the phases they will encounter throughout the risk lifecycle.

NDF’s portfolio of mostly equities means a higher year-to-year volatility of annual returns, including a higher risk of negative returns in any one year. The higher risk of negative returns in some years comes with an expectation of higher returns over the long term. Therefore, to design proper risk modeling NDF follows three attributes of risk management:

  1. Framework for risk assessment,
  2. Mechanism to track and measure risk, and
  3. Method to allocate resources based on its understanding and experience of risks.

Our risk advisory services specialists understand complexity of the business environment. NDF team work closely with portfolio companies to implement comprehensive solutions to address the risks. The tailored solutions of NDF are designed to address portfolio company’s unique risk factors and concerns.

With a clear understanding of the risk profile, NDF will customize its spectrum of risk advisory services to protect and support Portfolio Company and the NDF’s Risk Intelligent approach helps our portfolio companies to:

  1. Focus on areas of increased risk;
  2. Address the entire spectrum of Emerging Risks,
  3. Keep themselves prepared for Technological Disruption,
  4. Develop Crisis Preparedness Strategies and Resilience
  5. Pursue intelligent risk-taking as a means to value creation.
  6. Design Governance Framework and Risk Management and Model
  7. Support Business Process Enhancement and Business Continuity planning

Our risk intelligent approach helps our portfolio companies in implementing and embedding an effective risk management system.

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