If you are seeking to start a business or develop a commercial real estate income-producing property, the very first due diligence document you must prepare is the Enterprise Risk Management Plan (or “ERM Plan”). The Enterprise Risk Management Plan is the key due diligence document that drives decision-making relative to the scope of the business activities, the means and methods of addressing the anticipated market opportunity, how capital investment will be protected against loss, the scope and nature of capital investment return expectations, and the requirements the sponsor or promoter intends to place upon the business on an ongoing basis. In this regard, the Enterprise Risk Management Plan is the living, breathing heart of the business opportunity that is updated at least every 90 days for the entire life-cycle of the investment holding period. This is one of two critical elements of every capital financing business plan.
If you are seeking capital investment for your business or project, the ERM Plan is one of the baseline due diligence documents that should be made readily available for review by interested parties when the capital funding solicitation cycle starts – not when underwriting starts. If you don’t have an ERM Plan, then get busy creating yours or turn to a due diligence consulting firm like INVIZEN to have one created for your business or project. The INVIZEN approach integrates ERM planning with business operations planning, feasibility analysis, market risk forecasting, financial feasibility analysis, underwriting reviews and ongoing loss prevention monitoring and forecasting that is part of the end-to-end solution known as the INVIZEN Real-Time Status (RTS) Asset Care Protection Program.
Currently, the asset classes supported by the INVIZEN RTS program include the following commercial real estate and business specific intended-use scenarios:
- Multifamily Rental Class “A”
- Multifamily Rental Class “B”
- Multifamily Rental Class “C”
- Multifamily Age-Restricted Rental Senior Housing
- Multifamily Rental Independent Living Facility Senior Housing
- Multifamily Rental Assisted Living Facility Senior Housing
- Multifamily Rental Alzheimer’s Assisted Living Facility Senior Housing
- Multifamily Rental Congregate Care Senior Housing
- Multifamily Continuing Care Retirement Community (CCRC) Senior Housing
- Commercial In-Line Retail
- Commercial Single-Tenant (Retail/Commercial/Healthcare Sub-Scenarios)
- Commercial Enclosed Retail
- Commercial Mixed-Use Retail
- Commercial Office Class “A”
- Commercial Office Class “B”
- Commercial Office Class “C”
- Commercial Light Industrial Flexspace
- Commercial Distribution Facility
- Commercial Mini-Storage
- Hospitality – Resort Class
- Hospitality – Full Service Class
- Hospitality – Limited Service Class
- Hospitality – Value Class
- Information Technology Companies – Advertising Sales Model
- Information Technology Companies – SaaS Model
The INVIZEN Real-Time Status Asset Care Protection Program that INVIZEN was intentionally designed to support:
- CRE Developers & Sponsors. Developers and sponsors seeking capital financing have the advantage of a systemic solution that provides the support needed to increase the odds of a successful capital financing outcome that saves time, money and reduces their capital investment risk.
- Investors & Lenders. Investors and lenders seeking to participate in commercial real estate securities private placement offerings and other credit instruments have the advantage of a systemic solution that provides the highest practical investment performance assurance we can contrive. INVIZEN gives investors and lenders the proactive investment loss severity risk prevention and monitoring they really need, but have never been able to obtain in the past.
- Broker-Dealers & Registered Investment Advisors. Securities broker-dealers and registered investment advisors on both the buy-side and sell-side of the transaction have the advantage of a reporting system that provides FINRA compliance support, protection from future investment fraud claims, increased transaction velocity and the opportunity to increase their operating margins – all in one package. If your firm doesn’t have this approach, then you are still operating in an environment that will penalize your opportunity to profit and control costs.
If you have questions regarding business planning issues please feel free to contact INVIZEN at 832.663.9634 to get answers to your questions and the support you need to maximize the opportunity for your business to be a success now and in the future.