Risk Mitigation
Risk is a thing to be chosen, not avoided. The work is knowing which risks you are being paid to take and which you are carrying by accident.
What it is
Risk is a thing to be chosen rather than avoided. The work is separating the risks you are being paid to take from the ones you are carrying by accident — currency exposure, a concentrated holding, a maturity you had not noticed, a liability denominated in a currency you do not earn.
For most Tanzanian clients the largest single risk is concentration: one business, one property, or one holding that dominates the balance sheet. That is the conversation this service starts with.
What it covers
- Concentration — identifying it, sizing it, and planning a realistic route out of it
- Currency — the mismatch between where you earn, where you spend, and where you hold
- Drawdown — deciding in advance what you will do in a falling market, in writing, before it falls
- Liquidity — making sure money is available when it is needed without a forced sale
- A written investment policy covering the target mix, rebalancing rules, and what happens under stress
- What this is not
- There is no live Value-at-Risk dashboard and no daily automated stress simulation. Risk work here is analysis and written policy, reviewed on a schedule — not a monitoring screen.
- Who does it
- Hermes Massawe. There is no risk committee, no risk officer and no separate risk desk.
- Derivatives
- Option and forward overlays are not part of the standard service. Where hedging is appropriate it is discussed and priced separately.