Tyke’s Comprehensive Guide to Effective Risk Mitigation

In today's dynamic financial landscape, making well-informed decisions is paramount. While the allure of lucrative returns can be enticing, mitigating risks is equally crucial. At Tyke, we prioritise risk management through a holistic approach designed to empower our clients with secure and informed financial decisions.

Initial Due Diligence

Before embarking on any financial endeavour, we conduct thorough due diligence to assess various critical factors:

• Financial Health Assessment: Our team meticulously analyses audited financial statements and GST filings to gauge the financial stability and creditworthiness of the company.
• Buyer-Seller History Analysis: Understanding the transactional history between the company and its vendors/customers is paramount. By scrutinising bank statements, we establish the credibility of invoices, laying the groundwork for further assessment.

Only companies meeting our stringent criteria progress to the next stage of invoice authentication.

Invoice Authentication

Every invoice undergoes a rigorous authentication process to validate its legitimacy and the identities of both the issuer and recipient. This step minimises the risk of fraud or misrepresentation by:

• Verifying invoices through the respective platforms for new-age marketplaces.
• Requiring email confirmations or Goods Received Notes (GRNs) for invoices from traditional trade channels.

Ongoing Monitoring

Risk mitigation is an ongoing endeavour. Throughout the investment period, we continuously monitor the financial health of the company and market conditions. This proactive approach enables us to identify potential risks and take preemptive measures to mitigate them effectively.

Collateral Collection

To provide an additional layer of security, Tyke incorporates collateral collection into its risk mitigation strategy:

• Post-dated cheques from clients serve as a safety net, offering reassurance in unforeseen circumstances.
• For companies with limited buyer-seller history, we obtain signed personal guarantees from directors backed by post-dated cheques from their personal accounts.
• In cases where additional risk is perceived, we secure immovable assets through legal charges.

Expert Intervention

Recognising the complexity of financial decisions, Tyke leverages the expertise of seasoned financial professionals. These experts meticulously assess potential risks associated with investments, providing invaluable insights to guide clients towards well-informed decisions.

At Tyke, our commitment to risk mitigation underscores every aspect of our operations. By prioritising due diligence, authentication, ongoing monitoring, collateralisation, and expert intervention, we strive to empower our clients with confidence in their financial endeavours.?

Karan Mehra Purav Bubna