Forestry Investment Management - Risk Profiling
To support institutional investors, forestry investors and their hired TIMOS (Timber Investment Management Organizations) to advance the income-to-risk efficiency of there portfolio's performance within the timber supply chain.
In the area of forestry investment, Atica works with our clients to develop world class tools and protocols that define, locate, measure, benchmark and mitigate several risk sources throughout the "timber-to-end market" supply chain. We all understand that "investment management is risk management while attempting to optimize profits in highly volatile global markets." The first step is finding out that more can be done.
Our Delivarable Commitment
We guarantee that after our initial on-site assessment, if Atica can not produce "easily recognizable and measurable value" on a daily basis thereafter, we will not accept the assignment.
Our People and Their Competencies
Risk Management - A Brief Introduction:
In our experience, common sense questions generally produce some very valuable and profitable answers. If the below metaphor makes sense, you may wish to stop for a moment to ponder its ramification within you own line of business.
A Metaphoric Mirror
If you owned a very remote diamond mine...
And there was only one diamond cutter in the entire village...
And he only knew how to cut your diamonds into third class gems...
Guess what he can pay you for your diamonds?
Guess who is controlling the value of your mine?
Guess who needs an education?
Guess who is currently ... at risk?
As a forestry investor, when it comes to risk management, one really needs to understand the nature and difference between Risk Context vs. Risk Contents ... Change vs. Uncertainty ... Volatility vs. Risk and Hazards vs. Opportunity.
In our experience, fresh and insightful questions generally bring to light a vast array of what otherwise remain darkly hidden risks. Here are just a few of the questions you will find on our site's White Paper section entitled: "Getting Back to Basics in Understanding Risk in the Timber Investment Sector".
As it relates to the entire "timber-to-finished end market" supply chain:
- What percent of the total asset Value at Risk [$ VaR] does an institutional forestry investor have when compared to all other supply links within that supply chain?
- What is the probable investment Value Lost allocation [VL %] for each of the supply links within that chain?
- In order to participate in an "efficient" supply chain, risk-to-return "allocation", what is the risk adjusted premium that plantation investors should expect for their anticipated loses [$Loss = $ VaR x VL%] when compared to other supply chain members?
What We Have Produced
Atica has produced a proprietary set of qualitative and quantitative survey instruments designed to highlight the strengths and weakness regarding the key productive drivers and indicators throughout the forestry investment management process, its supply chain, and most important, within the hardwood and softwood saw mills that are cutting up your inventory.
As part of Atica's Executive Dashboard of tools, we have also developed a unique variety of productive saw mill "Simulation – Optimization Models" to assist management to know and see what lies ahead in order to mitigate what otherwise are hidden risks from misinformed decisions.
In addition, we have produced a white paper entitled "Getting Back to Basics in Understanding Risk in the Forestry Investment Sector". Navigate to our "Professional Insights" White Paper Directory.
Alternatively, you may see a Power Point presentation addressing similar forestry insights and risk by going to "Professional Insights" Power Point Directory.
And finally, if you have any specific questions regarding opportunities you now seek to discover and pursue, give us a call.