Tag Archives: Outsourcing services

Introduction

An Industry Report is a detailed analysis of a specific industry that includes a wealth of data, facts, and figures. There are two types of industry reports: private and public. The customers buy the prepared Industry reports, while some can be downloaded for free. The financial services industry is a large industry that caters to both individual and corporate financial requirements. The industry is made up of both large corporations and small businesses. The financial sector is an essential component of various Industrialized economies around the world, and it is critical to global economic development. The financial services sector will be worth $26.5 trillion by 2023, accounting for one-fourth of global GDP—the financial services industry profits from larger investments. When the business cycle is on the rise. When the economy improves, new capital projects and personal investments are likely to follow.

The financial services sector forms companies that sell financial services such as loans, investment management, insurance, brokerages, payments, and transferring money. The financial services industry is divided based on the companies’ business models that make up the industry. Most businesses fall into multiple categories.

Areas covered in Industry Reports for Financial Services

Areas covered in Industry Reports for Financial Services

Areas covered in Industry Reports for Financial Services

Loans and Payments

Organizations that sell lending and payment services, such as loans, payments, and money transfer services, are included in the loans and payments market. Banks and other financial service providers accept deposits and reimbursable payments as well as make loans. Providers compensate those who provide them with funds, which they then lend or invest to profit on the differences between what they give depositors and what they earn from borrowers. Providers enable payments to be transferred from payers to recipients and ease transactions and account settlement, using credit and debit cards, bank drafts such as checks, and electronic funds transfer.

Insurance

-Insurance Providers-Direct insurers aggregate payments from individuals looking to cover risk and payout to those involved in covered personal or business-related catastrophes, such as a car accident or a shipwreck.

-Reinsurance Providers-They can be companies or wealthy individuals who offer to cover some of the risks that a direct insurer assumes in exchange for a fee.

-Insurance Brokers and Agents- Insurance intermediaries, including agencies and brokers, connect those who want to pay to cover risk with people prepared to take it on for a fee.

Investments

Wealth Management-

Wealth management is an investment advising service that integrates other financial services and meets high-net-worth individuals’ demands. The advisor obtains information about the client’s aspirations and personal situation through a consultative approach, then produces a tailored strategy that integrates a range of financial products and services. An integrated strategy is often used in wealth management. Numerous services might well be supplied to meet a client’s specific demands. While total wealth management service charges vary, they are often decided by the amount of money customer has with them.

Securities Brokerages and Stock Exchanges-

Individuals can use investing services to gain access to financial markets such as stocks and bonds. Brokers, who are either human or self-directed internet services, enable the buying and selling securities for a fee. Financial advisers may charge an annual fee depending on assets under management (AUM) and supervise various trades to build and manage a well-diversified portfolio. Robo-advisors are the latest financial advice and portfolio management iteration with automated algorithmic portfolio allocations and trade executions.

Investment Banking

Dealmakers and high-net-worth individuals (HNWIs) are often the only people who work with an investment bank—not the public. These institutions underwrite transactions, provide access to capital markets, provide wealth management and tax advice, aid corporations with mergers and acquisitions (M&A), and make stock and bond trading easier. This market also includes financial counselors and cheap brokerages. 

Major Components in Industry Reports for Financial Services

The following are usually found in industry reports for financial services:

-Industry definition

-Major industry players

-Market share

-Historical and current trends

-Employment statistics

-SWOT analysis

-Achievements

-Outlook

Latest trends found in Industry Reports for Financial services

Aside from the obvious concerns, there are a few financial services industry trends to keep an eye on. Consumer behavior is shifting, and financial services companies must adapt, or risk being left behind.

Latest trends in Industry Reports for Financial Services

Latest trends in Industry Reports for Financial Services

Digital Transformation

The financial sector, which always relied on paper documents, has changed in recent years. The way firms work is dramatically altering because of digital transformation. As a result, investors can now use their cellphones to track the success of their portfolios in real-time and buy shares with a single tap. Because digitization has become the new normal, businesses can no longer be profitable if they keep the current quo. Instead, they will have to put money into a digital transformation plan.

Explosion of Fintech

The rapid growth of fintech startups has helped customers significantly while forcing proven financial institutions to rethink their business models. Companies have revolutionized the way individuals pay for goods and services. Apps that use AI to improve earnings while streamlining the corporate loan process are being used. Customers may manage their money, trade cryptocurrency, send money to friends, and donate to influential social organizations using a digital bank with a powerful app. The traditional financial institutions will have to figure out how to provide similar benefits to their customers as new fintech companies develop.

Democratization of Investing

When it comes to investing, several apps have lowered the bar. Individuals can now buy whole or partial shares in their favorite companies for a low or no fee. Setting up automated stock that buys any time people visit their favorite stores and for a Robo-investor to invest in firms and mutual funds depending on the risk tolerance has been made possible now. Due to this, traditional investing firms have faced considerable challenges while also from mass communication sites like Reddit and Discord. Financial advisors and investment businesses must differentiate themselves and prove their worth to succeed.

Utilizing Big Data

Financial organizations generate massive volumes of data, but the data is useless without a robust engine to organize it. Fintech software enables businesses to get actionable insights from big data. More organizations are expected to mine their data to improve customer service while increasing earnings.

More Open Banking Apps

Open banking is an API approach that allows financial institutions to securely exchange client data with other businesses. In recent years, many apps have sprung up that use open banking to provide unique services to clients. An app that scans transactions to watch subscriptions and bills while automatically saving a specific amount each month and a conversational chat app that uses artificial intelligence to help manage the budget is also being used.

Magistral’s Industry Reports for Financial Services

Magistral’s Industry reports for financial services typically include graphs, charts, tables, and written commentary. Even non-professionals can gain an understanding of the sector because of this. The financial services sector is the engine that propels a country’s economy forward. It allows capital and liquidity to flow freely in the market. The economy expands when the sector is robust, and businesses in this area are better prepared to manage risk. The financial services sector’s strength is also vital for the prosperity of the country’s population. Consumers earn more when the industry and economy are robust, increasing their self-assurance and buying power.

 About Magistral consulting

Magistral Consulting has helped multiple funds and companies in outsourcing operations activities. It has service offerings for Private Equity, Venture Capital, Family OfficesInvestment BanksAsset Managers, Hedge Funds, Financial Consultants, Real Estate, REITs, RE fundsCorporates and Portfolio companies. Its functional expertise is in Deal originationDeal Execution, Due Diligence, Financial ModelingPortfolio Management , and Equity Research.

For setting up an appointment with a Magistral representative visit www.magistralconsulting.com/contact

About the Author

The article is Authored by Marketing Department of Magistral Consulting. For any business inquiries, you could reach out to prabhash.choudhary@magistralconsulting.com

Introduction

Private equity is a term used in the finance sector to describe investments made directly into a business by some investors and private equity organizations. Institutional investors typically make private equity investments in venture capital funding or leveraged buyouts. Private equity can be used for various goals, including technology upgrades, business expansion, acquisitions, and even the revival of a failed organization.

Private equity investors often have a 5-7-year investment horizon and expect to leave after making a significant return on their investment. Private equity investors might use various exit strategies to get their money back. Private equity (PE) has been the expansion engine for a while. The primary goals of this industry are evolution and productivity. Private equity refers to capital that is not traded on a public market and is invested in a long-established industry that is not functioning well or is about to fail. Venture Capital, Growth Capital, Leveraged Buyout, Mezzanine Debt, and Distressed Debt are the five main types of PE. A venture capitalist, often known as a “venture capitalist,” comes to their aid by offering risk-bearing funds. Institutional and individual investors contribute funds to private equity, which can be used to fund innovative technology, boost working capital, or consolidate a balance sheet.

Standard Modes of Private Equity’s Exit Strategy From Portfolio Companies

Exits are of crucial importance to Private Equity investors, and they consider a variety of different exit strategies to realize their return on investment. Some of the most common Private Equity exit strategies include:

Standard Modes of Exit Strategy

Standard Modes of Exit Strategy

Initial Public Offer (IPO)

One frequent method is to launch a company’s public offering and sell its shares to the public as part of the IPO. Depending on the situation, shares might be sold at once. Shares assigned can also be sold when the company is listed and the shares begin trading on the exchange. Because of the required costs, stock market flotation may only be employed by giant corporations, and it must be financially sustainable.

Strategic Acquisition

A strategic buy or trade sale is another choice, in which the business is sold to a different suitable company and a portion of the sale earnings is received. One of the most typical methods for private equity funds to exit is this one. The buyer will typically profit strategically from purchasing this business because their strengths may compliment one another. As a result, the buyer frequently pays more to purchase such a business.

Secondary Sale

The private investors can sell the acquired stake in the company to some other private equity group in a secondary sale. The secondary sale might happen for a variety of reasons. For example, the business may demand additional funds above the current equity fund’s capability. Alternatively, the company may have reached a point where the earlier private equity investors wanted it, and additional equity investors wanted to take over.

Repurchase by the Promoters

It is another effective exit plan in which the company’s management or promoters buy back the equity position from private investors. For both investors and management, this is an appealing exit option.

Liquidation

It is the least desirable choice, but it may be necessary if the company’s promoters and investors have been unable to run the business successfully.

Key Considerations and Trends in Private Equity’s Exit Strategy From Portfolio Companies

Key Considerations and Trends in Exit Strategy

Key Considerations and Trends in Exit Strategy

Preparing the Portfolio Company for Sale

Private Equity investors, being financial investors with an investment philosophy of creating returns on their investments, typically keep a close eye on the company’s performance and engage in strategic choices that may affect valuation (especially as their investment horizon approaches). Furthermore, as part of a portfolio company’s ‘clean-up’ prior to an impending sale, another emerging trend is to refinance or repay the company’s existing debt to be able to, among other things:

-Displaying a solid balance sheet to potential incoming buyers

-If any, obtaining a release of encumbrances over shares of other shareholders that may be relevant for a bulk sale.

Partial Exit

Retaining a majority interest or control rights in a publicly traded firm after a partial exit may expose the Private Equity investor to be classed as a promoter or “co-promoter.” Partially exiting from a private firm carries the risk of the Private Equity investor losing control and piggybacking on the founders’ or private equity’s exit strategy from portfolio companies.

Use of Insurance Product

Most Private Equity investments are made through funds with a short life expectancy and internal constraints on taking general indemnity obligations, including uncapped indemnities. As a result, using an insurance product to supplement, and in some circumstances completely replace, the indemnification structure that sellers may provide in such transactions is becoming increasingly prevalent.

Severance Payouts or Compensation Arrangements

Without the approval of the board and non-interested public shareholders, a Private Equity investor cannot enter compensation or profit-sharing arrangements (including severance payout arrangements) with the promoters, directors, or key employees as part of its exit strategy from a publicly traded company to incentivize them by sharing returns beyond a hurdle rate.

Guaranteed Returns

Much debate has surrounded the question of whether a foreign investor’s exit option can be at a pre-determined valuation while still guaranteeing returns. Indian courts have recently demonstrated a greater willingness to uphold indemnity and damages claims, even when the underlying contractual commitment conflicts with Indian exchange control prohibitions on guaranteed returns.

Tax Considerations

There may be different tax implications depending on the cost of buying shares and the difference between the purchase value and the final sale price. To minimize further tax implications, ensure those indemnification payments are not treated as income and are instead adjusted as capital gains. Exit structures must also be implemented to minimize tax exposure and prevent violating India’s “general anti-avoidance regulations.” In transactions involving selling shares by a non-resident private equity investor to another non-resident private equity investment, indemnities for potential indirect transfer taxes become an essential part of the share purchase agreements.

Enforceability of IPO provisions

Given that all the business’s directors sign the IPO offer documents, the directors’ fiduciary duties may prevent the company from conducting an IPO on terms dictated by Private Equity investors if the directors believe the IPO was not in the shareholders’ best interests. In addition, the corporation must have a proven record of profitability and net worth and a minimum amount of net tangible assets, among other requirements. As a result, the enforcement of IPO requirements in shareholder agreements has yet to be proven.

Locked-box vs Completion Accounts

There are two methods for making post-completion adjustments: completion accounts or a locked-box approach. A locked-box method is efficient since it ensures pricing certainty and saves management time and effort to prepare completion accounts. However, under a locked-box system, the negotiated post-signing interest that must be paid together with the purchase price may not be enough to balance the impact of intermediate activities that must be reflected into completion accounts.

Number of private equity and venture capital exits across India

Number of private equity and venture capital exits across India

Value of Private Equity anad Venture Capital Exits

Value of Private Equity and Venture Capital Exits

Magistral’s services on Private Equity’s Exit Strategy From Portfolio Companies

Magistral’s successful exit strategy specifies existing owners’ procedures to separate themselves from the company. The extended off-shore crew also assures that no expertise is lost across firms for similar projects and that numerous projects in several companies can run simultaneously, prioritized according to board meeting schedules. Unanticipated events may necessitate the implementation of a corporate exit strategy.

About Magistral consulting

Magistral Consulting has helped multiple funds and companies in outsourcing operations activities. It has service offerings for Private Equity, Venture Capital, Family OfficesInvestment BanksAsset Managers, Hedge Funds, Financial Consultants, Real Estate, REITs, RE fundsCorporates and Portfolio companies. Its functional expertise is in Deal originationDeal Execution, Due Diligence, Financial ModelingPortfolio Management and Equity Research.

For setting up an appointment with a Magistral representative visit www.magistralconsulting.com/contact

About the Author

The article is Authored by Marketing Department of Magistral Consulting. For any business inquiries, you could reach out to prabhash.choudhary@magistralconsulting.com

Introduction

The Sourcing Strategy is a process of data gathering, expenditure analysis, market research, negotiation, and contracting. In the 1980s, General Motors started employing systematic strategic sourcing. It strives to establish long-lasting, cooperative relationships with suppliers, who are seen as essential value partners. To ensure that the organization’s demands are consistently and effectively satisfied, the customer-supplier loop is evaluated at every point in its lifespan. Therefore, strategic sourcing is a lengthy process that requires qualified employees, effective technology platforms, and tools for execution.

Strategic Sourcing is becoming more common as digital transformation changes supply chain and procurement procedures. Analyzing what an organization buys, from whom, for what price, and in what quantity is required. The primary justification for purchasing a strategic sourcing suite, according to Gartner’s Magic Quadrant, is to transform sourcing within the company (74%). Businesses’ top motivations for engaging in strategic sourcing were greater significant savings (61%), and higher efficiency through automation (65%). A better understanding of supplier marketplaces can help companies identify potential risk factors and develop sourcing strategies to mitigate them.

Depending on the business, supply chain expenses, which primarily include transportation and procurement, can vary from 50 to 70% of sales. Therefore, investing a lot of effort in creating your organization’s strategy is essential. You may accomplish desired results and maintain alignment with corporate objectives by routinely assessing your sourcing strategy. A detailed grasp of a company’s business strategy, the resources needed to execute that plan, and the market dynamics and specific risks involved with managing techniques are necessary for successful sourcing.

The size of the worldwide supply chain analytics market is anticipated to reach USD 22.46 billion by 2030, showing a CAGR of 17.6% from 2022 to 2030 in a recent analysis by Grand View Research, Inc. As the need for handling massive amounts of corporate data and its insights for strategic applications develops, supply chain analytics is becoming more common.

Benefits of Sourcing Strategy 

It, as we all know, simplifies business operations. Some of the benefits are listed below:

Benefits of Sourcing Strategy

Benefits of Sourcing Strategy

Better Cost Savings:

Organizations may save money by having a legally established and well-defined sourcing strategy. You might start by choosing a few vendors who provide the best value. You may bargain for cheaper unit costs when making large purchases. Finally, the investment considers outside variables, such as market circumstances, optimizing earnings, and providing a competitive advantage.

Reduction and Mitigation of Risk

To mitigate potential hazards, strategic sourcing employs a cost-focused methodology. Businesses may do quality, financial, supply, and customer support risk assessments by looking at suppliers’ overall amount and value. Maintaining good ties with your suppliers might help you stay one step ahead of potential supply chain disruptions.

Continued Room for Improvement

It demands that the strategic sourcing procedures be continually assessed and revised. It is a constant cycle of improvement. As a result, they are allowing managers or executives to pinpoint problem areas and develop solutions around them. It also enables stakeholders to decide with confidence on matters like the future evolution of the business model, taking advantage of market possibilities, and maintaining competitiveness.

Enhancing and Identifying Ideal Suppliers

Strategic sourcing emphasizes profiling suppliers by assessing their core competencies and concentrating on the purchase cost. Through this method, businesses may identify the providers that best meet their needs for the maximum value creation or addition at the most affordable price.

More solid supplier relationships

Businesses set the groundwork for trust when they invest in improving their relationships with their suppliers. Companies may encourage their suppliers to deliver on the organization’s goals by including them in sourcing choices and making them feel appreciated.

Steps to Create an Effective Sourcing Strategy

Identifying and Classifying spending profiles

The sourcing efforts for each spending area will be prioritized with the aid of categorization. The criteria that better meet the needs of the business can also be devised, for example, direct vs. indirect spending. To assist in prioritizing and creating solutions in these situations, it is crucial to do a risk analysis of the selected spending categories.

Developing a Sourcing Plan

This entails determining the business unit needs that call for expenditure and setting goals, targets, and matching deadlines to meet the requirements. This calls for developing a communication pipeline so that all parties involved in the relevant sourcing initiatives know impending developments.

Market Study of the Suppliers

It examines the present and potential suppliers to comprehend and rate pertinent supplier profiles. It is necessary to investigate supplier market share to understand their position in the market, their level of industrial performance, and the threats and possibilities facing the supplier market.

Information Request to Supplier 

Request for information (RFIs), request for proposal (RFPs), and request for quotation (RFQs) from vendors is the next stage after finishing the supplier market research. It is crucial to convey the business’s specific requirements, as well as its end goals and performance expectations, to ensure that suppliers fully comprehend what the organization requires.

By identifying suppliers and carrying out the contracting process

This stage is to pick the suppliers that can provide the maximum cost savings while offering quality once the selection criteria have been determined. The contracting procedure begins to onboard the vendors after supplier selection for the pertinent sectors.

Evaluation and Regular Monitoring of Supplier Performance

Accurately assess how suppliers perform in comparison to the needs and goals of the company. It is crucial to monitor supplier performance regularly and pinpoint development opportunities. Organizations may use this information to evaluate supplier risks better and develop plans to minimize potential supply chain interruptions.

Principal Motivators for Automation of Sourcing strategy 

An Increase in Data Transparency

Strategic sourcing tools and platforms generate data on spending patterns, supplier performance, and supply chain risk assessment. This information, provided in reports, enables a comprehensive evaluation of all sourcing operations. Additionally, these discoveries may automatically start additional procedures depending on the business flow and legal environment.

Principal Motivators for Automation of Sourcing strategy

Principal Motivators for Automation of Sourcing strategy

Active Management

Automating the sourcing strategy procedures enables categorizing different expenditure activities using rule-based classification. Additionally, this procedure may be done in real-time, and the records will be updated immediately. As a result, you may have a single dashboard that shows the most recent, classified spending for the whole company.

Data-Driven Risk Evaluation

Every supply chain is prone to risks and failures in various ways. Businesses must be ready to respond to this risk, whether it manifests as interruptions, quality, or availability issues. An accurate risk assessment model is required to mitigate the harms brought on by internal and external threats, and an automated strategic sourcing method meets these criteria.

Greater Accountability

The flow of the sourcing process and any bottlenecks are shown on eSourcing platforms, which have a specified workflow mapped onto them. Greater accountability and improved compliance by all the parties involved in the sourcing projects are made possible by increased openness. 

Magistral’s Services on Sourcing Strategy

Magistral has extensive experience in research and analytics, which can aid in cost reduction through sourcing strategy. Some of the services are as follows:

Spend analytics:

Review expenditure profiles from the past and the future to find potential for supplier consolidation and tail spend optimization.

Cost and price analytics:

It guides informed judgments and creates scenario-based, predictive cost models and pricing estimates.

Supplier analytics:

Develop supplier sustainability scorecards, track supplier performance against Service level agreements, and create scenario models for bids and tenders.

Risk analytics:

Pay early alerts for category risks and supplier-related risk signals. With unique analytics that blends internal and external data sources to unearth hidden insights, you may advance your goal of digital procurement transformation.

Real-time recommendation:

Be a strategic partner to the company by recommending fresh, successful approaches to risk management, innovation, and cost reduction.

About Magistral Consulting

Magistral Consulting has helped multiple companies to reduce operations costs through its offerings in Procurement and Supply Chain.

About the Author

The article is Authored by the Marketing Department of Magistral Consulting. For any business inquiries, you could reach out to  prabhash.choudhary@magistralconsulting.com

Introduction          

An Investor Profiling summarizes an investor’s financial goals, situation, time horizon, and risk tolerance. It can assist individuals in making appropriate investment decisions. How much risk one should be willing to assume is determined by an investor profile. For example, a more conservative portfolio may be suitable if someone needs to preserve their money and have a short time horizon. If someone wants to expand their monetary liquid asset (cash) and has a longer time horizon, a more aggressive equity-based portfolio may be appropriate. The most essential quality of an investor is temperament, not intellect quoted to Warren Buffett.

The first step in creating a wealth plan is to analyze the ability to take financial risks. Risk tolerance is determined by duties, objectives, personality, and various other factors. A risk profile is created to accurately understand an individual’s ability to assume financial risk as part of their investment portfolio. There are two crucial components of an investor’s profile:  risk appetite and risk tolerance. Risk tolerance is the amount of risk that a person’s finances can endure, whereas risk appetite is the amount of risk that a person is willing to take.

Importance of Investor Profiling

Risk Profiling is vital for an investor. Before investing in the market, one thing which usually troubles every investor is risk. People are concerned about losing their investment capital or receiving less than expected returns; nevertheless, the risk is generally a mathematical figure, such as volatility, that can directly impact your investment capital.

Each investor’s tolerance for market volatility will be different. This disparity is caused by various variables such as income, obligations, age, etc. The quantification of investor profiling is risk-carrying capability and capacity.

Investment decisions are made on the risk-reward trade-off that an investor is prepared to make in the face of precarious financial markets. It is critical to assess your financial position before making an investment. Take into account your financial goals, risk tolerance, and time horizon to help you determine the investments that are best for you.

Risk factors involved in Investor Profiling

The three major risk factors involved in investor profiling consist of Risk need, Risk-taking ability, and Behavioral loss tolerance.

Risk factors involved in Investor Profiling

Risk factors involved in Investor Profiling

Risk need

The amount of financial risk that someone, as an investor, can safely accept depends on their circumstances. An investor who may be short on funds during retirement and wants to sustain their monthly cash flow may need to take certain risks to achieve their end goal. As a result, risk requirement is about how much risk you “need to take” as an investor. This capability varies depending on their age and other things. For obvious reasons, the risk-taking capacity decreases as age increases. If someone has a target goal and can save according to that, then he will need an annual return. The rate of return will define how much risk one can need to achieve their target. During investor profiling, financial advisers must calculate realistic potential returns and market risk environment for all assets based on historical growth rates and the current market situation. Failure to accomplish a goal should motivate you to save more money or work for extended periods.

Risk-Taking ability

Risk Capacity refers to an investor’s ability to take risks given his existing and ongoing financial status. That is; his or her net worth in relation to liabilities, financial ambitions, and time horizon for investing. It has the potential to reduce exposure to growth assets. One such sub-factor is the investment horizon. For instance, if someone has five years to reach their objectives, one must invest in safer assets because growth assets have high short-term volatility. Risk capacity, or dealing with financial loss, might also influence risk-taking. In terms of liquidity, if the need for liquidity is low in the stage of capital accumulation, then the risk-taking ability is high and vice versa.

For example, if someone is receiving a pension or has a future income or assets to sustain, and their objective is not fulfilled, they have a higher risk-taking capacity than otherwise.

Behavioral Loss Tolerance

Behavioral Loss Tolerance defines an investor’s psychological capacity to cope with market swings. This covers the reactions and responses to various market conditions, such as a correction phase. Behavioral loss tolerance is measured by exams, interviews, and questionnaires and specifies the utmost uncertainty one can accept. The amount of awareness regarding items and their experience over market cycles is determined by financial knowledge and investor experience.

Higher ratings on these criteria imply that investors can progress to growth assets. Risk composure shows the likelihood of acting irrationally in response to a perceived crisis, leading to losses. A trigger-happy investor sells stocks at the first hint of a market drop, whereas the patient investor holds on.

A better investor profiling strategy is feasible when all three components are reconciled and linked together. The investor’s risk appetite cannot exceed the risk tolerance of the aim. Higher risk-taking capacity may be ignored when both the need and the behavioral loss tolerance are low. When risk-taking capacity and behavioral loss tolerance are Higher, a lesser risk needs may be dismissed.

Combining all of these factors yields a genuine risk profile, which should be used to establish a suitable asset allocation mix or strategy, which may require the assistance of a professional financial adviser.

Types of Investor Risk Profile

Conservative

The protection of capital is the main priority of the investor, and they are ready to take minimal risks in exchange for limited or poor profits. The possible asset allocation is equity of 0-10%.

Types of Investor Risk Profile

Types of Investor Risk Profile

Moderately conservative

The moderately conservative investors are ready to take on a little amount of risk in exchange for the possibility of long-term gains. The possible asset allocation is equity of 10 – 30%.

Moderate

Investors are willing to accept a moderate amount of risk in exchange for potentially larger long-term rewards. This type of risk profile is most secure for the investor. The possible asset allocation is equity of 40 – 60%.

Moderately aggressive

To maximize prospective profits over the medium to long term, investors are willing to take on a high level of risk. The probable asset allocation is equity of 70 – 90%. 

Aggressive

The investor is willing to take significant risks to maximize long-term prospective returns and is aware that a major portion of their cash may be lost. The possible asset allocation is equity of 90 – 100%.

Magistral’s Process for Investor Profiling

A risk profile indicates the level of risk that an individual is capable and willing to tolerate and accept. The risk profiling process usually starts with analyzing and discussing the investor’s circumstances and the goals the investments or portfolio should achieve.

Standard Process for Risk Profiling

Standard Process for Risk Profiling

Investors may have various purposes, they may never have thought about or stated their aims in this way before, and they may not be able to capture encapsulate in terms of quantity or time.

Magistral makes sure to entail and enumerate each and every detail related to the client’s needs, and risk considerations during the investor profiling. The process for investor profiling is as follows:

Define Goals

Here we understand what the goals of clients are, in both the short term and long term. Moreover, we also focus on the goals aligned with the current financial status. By having a broad picture, we can then pave the correct way in order to maneuver in the right direction.

Risk Profile Questionnaire

In order to understand the risk-bearing capacity and the willingness of the client to take risks, it is imperative to know the levels of risk exposure of the client. This is done by sending a “Risk profile Questionnaire” to the client. After, filling it out, our team of experts analyzes the questionnaire in order to ascertain the optimum risk exposure of the client.

Scoring the Questionnaire

By having the requisite filter channels, within each category of questions and taking into consideration of various factors, we score each level of questions in tandem with the client’s requirements.

Analyzing and Examining

Careful Scrutiny and analysis of the answers with respective weightage to the client’s needs. We make sure to understand the various needs of the client needs in order to make an optimum risk profile.

Summary Close

Careful Scrutiny and analysis of the answers with respective weightage to the client’s needs. We make sure to understand. While onboarding the client we also deliver a summary of the procedure and the rules of engagement with clients.

Conclusion

Investor profiling is required for determining the optimal investment asset allocation for a portfolio. Because risk appetite is influenced by psychological characteristics, loss-bearing ability, investor age, income and costs, and other factors, each person has a unique risk profile.

Magistral consulting can help you complete a quick risk assessment to determine which risk group you belong to. We can perform the entire investor profiling process and then use this information to determine what percentage of your portfolio should be invested in which asset class.

Why Magistral consulting?

-We provide an exhaustive investor database which is helpful in finding the right kind of investor and beneficial in filtering out the information in concurrence with the existing market scenario and also providing tailor-made support in tandem with client requirements.

-Magistral consulting ensures analyst support at every step of Investor profiling. We have a dedicated team of experts for handling respective operations. In accordance to the client’s demands and specifications, we offer customized services. Considering various stakeholders’ concerns and implementing their diverse proposals.

-We provide a service of target company profiling. It is crucial for us to meet the specific  expectations of our customers by recognizing their requirements.

-It also provides Marketing and Communication support. We have a proficient team having experience in a variety of sectors and indeed the ability to handle different tasks effectively. We make sure to understand each and every client’s needs in a comprehensive manner and provide tailor-made services in an efficient manner.

About Magistral consulting

Magistral Consulting has helped multiple funds and companies in outsourcing operations activities. It has service offerings for Private Equity, Venture Capital, Family OfficesInvestment BanksAsset Managers, Hedge Funds, Financial Consultants, Real Estate, REITs, RE fundsCorporates and Portfolio companies. Its functional expertise is around Deal originationDeal Execution, Due Diligence, Financial ModelingPortfolio Management and Equity Research.

For setting up an appointment with a Magistral representative visit www.magistralconsulting.com/contact

About the Author

The article is Authored by Marketing Department of Magistral Consulting. For any business inquiries, you could reach out to prabhash.choudhary@magistralconsulting.com

A Brief Introduction

Consumer and market insight report and analyze consumer behavior, information, and feedback. The comprehension and analysis of these insights assist adjustments to customer support systems and business development. Companies collect feedback using customer surveys, statistics, reviews, and focus groups to understand the underlying attitudes underlying consumer behavior and decision-making processes.

There is no formal definition of consumer and market insight, but it may be summed up as any measurement that can be utilized to observe and understand what customers think and feel. It might be their eye movements when viewing your page, how long they spend on it, how much they order, which options they choose, etc.; the list is endless. While certain information may be utilized alone to make a specific determination, marketers often use a variety of consumer insights to make their decisions.

Consumer marketing insights are also crucial when testing new initiatives within your company. You may learn from consumer insights how placement on the page, product details, SEO, and many other aspects affect your sales. Businesses employ consumer insights to understand their audience’s thoughts and feelings more deeply. Companies may better understand their customers’ needs and wants, and, more crucially, the reasons behind those needs and wants, by studying human behavior, which is likely to boost revenue and brand value thus.

Sector concentrating the more spending on market research 2020, by sector

Sector concentrating the more spending on market research 2020, by sector

Consumers today have virtually limitless store options and complete freedom over how they assess and interact with media and companies. In the wake of the COVID-19 epidemic, research has revealed that 81 % of consumers would continue reorganizing their spending this year, while 46 % of customers have experienced new expenditure restraints.

Benefits of Consumer and Market Insight

Consumer and market insight has the power to create or destroy a marketing plan. This dependency on data monitoring has only increased across all businesses considering the COVID-19 outbreak. Businesses and consumers are switching to a digital-dominant strategy enabling more precise insight measurement. Consumer insight may help determine the characteristics your consumers are seeking and find demands that your rivals are still not meeting. Social media and search engine trends might be helpful in this regard. To stay informed about what your target audience is searching for, you may set up alerts for movements and rivals.

This takes us to a further advantage of consumer insights: They provide a detailed picture of how you may compare your company to others’ businesses in ways other than sales and revenue. You can see how you compare to your rivals on various business-related terms regarding search engine rankings. 71% of consumers expect companies to deliver personalized interactions. 3/4 will switch if the customer doesn’t like the experience, so it’s vital to keep care of the customer experience.

Build effective category strategies that increase sales and promote sustainable growth by utilizing solid, impartial, and contextualized insights. Make quick judgments based on proactive information and forward-looking insights to stay one step ahead of the competition. Data and information make it easy to mitigate risk and identify strategic priorities.

How to get Consumer and Market Insight

Utilize social media analytics

According to a research survey, only 1.9 % of marketing executives said their businesses have the skills to use marketing analytics. With the popularity of social media as a tool for marketing, companies may communicate directly with their customers and discover their precise attitudes and responses to their offerings. Nowadays, many social media platforms have survey and questionnaire tools that can also give valuable information about consumer attitudes or behaviors. YouTube analytics, google trend and analytics, and google audience retention tools are the best source of collecting marketing insight.

Getting Consumer and Market Insight

Getting Consumer and Market Insight

Conduct surveys

Getting direct customer input is a terrific method to learn about the industry. Many businesses opt to do this by sending out feedback forms as soon as a client connects with or purchases their product or service. They may follow up later to obtain a more comprehensive customer experience analysis.

Access to public data

Because of the internet, businesses now have access to an infinite quantity of data, much of which is public information. When deciding on their marketing strategies, companies might utilize information about consumer buying patterns, financial situations, and the condition of their respective industries or economies.

Conduct market research

Focus groups are typically gathered as part of market research, a traditional method for businesses to collect data for market insights. These test subjects’ responses might offer valuable information about how the broader public might react to a particular product, service, or marketing campaign.

Customer feedback

Asking clients for feedback is one of the simplest methods to obtain consumer insights. However, there is a need for this. To guarantee that their customers feel comfortable sharing, brands must develop trust.

The impact of global consumers has changed

The transition of consumers to digital has increased significantly. Gen Z customers have created applications to discover extra food and purchase more goods online. People are preferably buying more on online sales or in big billion deals.

73% of Indian consumers return the product after shipment, so the company’s return policy should be easy to attract the customer and create trust. Myntra had 8 million orders during its end-of-reason sale in which 5 million buyers bought 4,636 brands. In the sale, 10 shirts were sold every second, 3 pairs of jeans were sold every second, and 17 sarees were sold every second, which signifies consumer behavior. Sales influence consumer behavior, those not in need also buy something.

44 % were undecided or made three or more assertions that they disagree with near shopping sustainability. A 23 % rise in expenditure across six or more categories was forecast by consumers worldwide. In the six months starting in April 2021 and concluding in September, 24 % of consumers worldwide do not anticipate increasing their expenditure in any category.

How to use Consumer and Market Insight

Set your goal

A list of questions and objectives is often where research starts. Determine the data type needed to finish your analysis before asking for input. Data on consumer demographics, corporate reputation, brand awareness, product issues, market rivals, and customer service initiatives may be included in the objectives for consumer insights.

Choose the research methodology

The research techniques you choose will depend on the information and results you are looking for. Data on consumer demographics and public relations may be found through focus groups and customer surveys. In customer evaluations and surveys, suggestions, and issues with goods, features, and customer service may come up. Pick the best approach to serve your research’s objectives and produce the most satisfactory outcomes.

Conduct research

Install data gathering technologies to compile information from sales processes and website visits or assemble participants and ask them to share their perspectives. Customers who respond to surveys and provide feedback frequently receive rewards from businesses. To gather information for analysis and determine consumer happiness, solicit and record consumer insights.

Analyze the result

You may find and visualize common issues, trends, and causes that arise among your customers by analyzing the outcomes of the data you collected. Create a graph or written report to summarize customer data and examine patterns like demographics, consumer behaviors, and product issues. Improvements and modifications that address frequent difficulties and feedback can be made using knowledge of the reasons and reactions that occur most frequently.

Apply changes

Consumer insight and market research are primarily used to develop and improve products that better fulfill the demands of consumers. Product development and marketing teams build solutions and work to answer customer complaints after collecting and evaluating the data. The organization’s understanding of customer service is demonstrated using these enhancements.

Why Magistral Consulting?

-Customer insight: Utilize tools like social media sentiment analysis, U&A insights, N.P.S. tracking, bespoke surveys, and more to stay current on consumer trends, requirements, and purchasing patterns to identify focus areas and create successful marketing plans.

-Market expansion: Receive timely, essential insights and evaluations of markets and regions to aid in partner selection, local market intelligence, understanding of shifting legal and regulatory environments, and developing successful ready strategies.

-Updated information: Proactively updates on recent and pertinent developments in your markets and categories will help you find new opportunities for innovation and growth.

-Expert insight: A comprehensive understanding of your company’s possibilities and difficulties by combining data from internal, external, and third parties. We have expertly selected insights on markets, categories, rivals, and consumers to assist your commercial and marketing teams in making more informed strategic decisions.

-Custom tools: You may create world-class category growth strategies fast and easily using pre-built templates and unique tools.

About Magistral Consulting

Magistral Consulting has helped multiple companies to reduce operations costs through its offerings in Procurement and Supply Chain.

About the Author

The article is Authored by the Marketing Department of Magistral Consulting. For any business inquiries, you could reach out to prabhash.choudhary@magistralconsulting.com

Introduction

Supplier Risk Intelligence aims to reduce supply chain interruptions by hastening response to as many possible preset events. We now know that dangers in the supply chain can originate from anywhere. Although some risks occur more often than others, even those that seem less urgent might be harmful. These might include shifting market dynamics, rival companies expanding their market share, cutting costs, or changing consumer preferences. While checking margins, expenses, and quality, businesses must be adaptable and resilient. Customer satisfaction must continue to be a top concern, needing the ability to quickly adapt the supply chain intelligence to meet changing customer demands. No matter how little it may appear, a single supply chain disruption can affect any of these factors. Therefore, each organization that depends on others for its success must conduct a supply chain risk assessment. The main participants in the supply chain include suppliers, distributors, manufacturers, and retailers. Every part—from raw materials to parts and carriers—must function synergistically for the end-user to receive what they expected.

Factors involved in Supplier Risk Intelligence

Companies often undertake supplier risk intelligence tests to learn more about their suppliers, the risks they can present, and the risk management strategies they employ.

Factors Involved in Supplier Risk Intelligence

Factors Involved in Supplier Risk Intelligence

Regarding suppliers, there is no such thing as zero risk. Not everything is predictable, and every firm has its weaknesses—both internal and external. The goal of supplier risk assessments is to evaluate supplier risks with the company’s risk thresholds and show whether the suppliers are meeting expectations within an acceptable level of risk, not to exclude suppliers that pose any risk. Of course, in some instances, supplier risk assessments lead to a company needing to fire a supplier because there is no workable method to reduce that risk. As many businesses will attest, diversifying the supply chain enables better agility if a supplier arrangement is broken. It is vital to avoid any situations where businesses are forced to collaborate with a supplier that poses a severe risk to the company just because a replacement cannot be found. There are several factors involved in supplier risk intelligence.

Financial Stability

Businesses should create a financial risk score for each supplier using a credit bureau rather than a data source while trying to reduce threats to financial stability.

Insurance Management

Continuous monitoring is recommended for insurance management since it enables businesses to alert their management if a supplier no longer has sufficient insurance due to not paying a premium or canceling a policy.

Reputational Protection

Resources can also be used to protect one’s reputation. Prominent Supplier Risk Intelligence firms search more than 35,000 periodicals globally using adverse global media monitoring to look for reports about bad suppliers. Programs like these can help businesses in expecting lousy press.

Regulatory Compliance

Global watch-list monitoring and document validation are two methods for monitoring regulatory compliance issues. Regulatory hazards are among the concerns a corporation cannot control but should be vigilant about monitoring.

Cyber Security

Cyber security vulnerabilities are among the most significant issues businesses have been looking for help with Supplier Risk Intelligence firms. The ability to create a security rating, monitoring tools, potentially a security questionnaire, and the resources to gather and manage the information are all necessary for Supplier Risk Intelligence.

Document Management

Businesses should concentrate on document management to gather, organize, and authenticate any standardized document. Humans must review essential documents like insurance policies to ensure they are insured.

Social Responsibility

Verifying diversity, promoting sustainability, and analyzing anti-slavery and human trafficking issues should all be part of efforts to tackle social responsibility concerns. It is essential to build ties with suppliers who perform well rather than associating the business with those who do poorly on these metrics.

Health and Safety

Additionally, businesses must gather and manage data, including public safety and health statistics and other materials, to oversee their operations’ overall health and safety.

Processes in long-term Supplier Risk Intelligence

The most important thing to understand about supplier risk intelligence is that it cannot be completed in a single step. Various processes are needed to achieve it.

Processes in Long-Term Supplier Risk Intelligence

Processes in Long-Term Supplier Risk Intelligence

Documenting Known Risks

Mapping the supply chains for all the goods and services offered is the most effective method to start any risk assessment exercise. The goal is to understand each link in the supply chain and the risks. Create a risk registry for each supply chain the company depends on so that processes can be prioritized on what to watch. Any areas where risk is uncertain or the lack of data should be noted when finding and recording risks. To find out if these are unknown risks or if the suppliers need to be more forthcoming, they can flag them for further inquiry.

Creating a Framework

When conducting audits, developing a risk management framework is necessary after creating a risk register. Although the framework can be straightforward, it is vital to consistently evaluate the risks to the supply chain and business operations. Consistency allows prioritized actions based on the risk and harm they pose to the company. This strategy covers bases by enabling access to risks associated with the suppliers and the adaptability and readiness of the company to manage any problems.

Monitoring Risk

A strategy for ongoing and persistent analysis is essential once the risk management framework has been built and initial audits have been completed. Continuous monitoring not only serves as a reliable early warning system for foreseeable problems in the supply chain, but it may also strengthen the relationships with suppliers because they will know where to focus the mitigation efforts. Risk measurement and monitoring are now easier than ever, thanks to the development of digital supply chain visibility technologies in recent years. It is now possible to obtain real-time information while tailoring the metrics, watched according to the needs and risk tolerance. The latter can be beneficial if rapidly changing factors like the weather are being tracked because, for instance, a hurricane or typhoon could impair operations at a supplier’s plant.

Implementing Governance

It is excellent practice to ensure a governance framework to help review supply chain risks and continuously watch hazards. Companies choose internal champions to oversee each supply chain node as part of the supply chain governance strategy. When risk levels change, or mitigation is needed, each person would then collaborate with the suppliers to offer ongoing support and follow-up. Creating a governance board for the company that consists of the people in charge of the various supply chain nodes can be done. The governance board might meet regularly to update the company’s risk profile and forecast and assess the risk ratings related to the supply chain. The procurement and sourcing teams would receive help from these efforts since they always have the latest standards when creating questionnaires and other materials for onboarding potential new suppliers and partners.

Magistral’s Services on Supplier Risk Intelligence

Magistral’s Supplier Risk Intelligence delves more profoundly than just financial risk markers. They offer Custom insight dashboards and Flexible solutions to support the business, regulatory, and sustainability goals. Other services offered by Magistral on Supplier Risk Intelligence include:

ESG Scorecard:

This includes evaluating a supplier on 49 detailed ESG parameters and also preparing a carbon footprint for the client.

Compliance Monitoring:

This is the important step in compliance data collection, analyzing, and reporting it.

Dashboards and Visualization:

This consists of preparing risk dashboards and then highlighting the concerns associated, with the client.

Custom Research:

Risk Analysis is done on the customized parameters as suggested by the clients.

Risk Evaluation:

Quantification of the impact of potential risk is done here.

Supplier Monitoring:

This has newsletters, data collection, and reporting, vendor scorecards, etc.

About Magistral Consulting

Magistral Consulting has helped multiple companies to reduce operations costs through its offerings in Procurement and Supply Chain.

About the Author

The article is Authored by the Marketing Department of Magistral Consulting. For any business inquiries, you could reach out to prabhash.choudhary@magistralconsulting.com