McBride Financial Services: Risk Assessment

McBride Financial Services: Risk Assessment

Hugh McBride has requested a risk analysis for the city of Boise, Idaho with the intention of setting up an office for McBride Financial Services. This analysis will help the organization decide if Boise is the right city to place an office based on the inherent internal and external risks. The analysis will include research of the city that will include local crime statistics and topological information. The severity of crime in the city and the possibility of natural disasters will be analyzed and provided to the organization. Risks or lack thereof discovered in this assessment will provide McBride Financial Services with a better understanding of Boise, Idaho, and its community.

McBride Financial Services Background

McBride Financial Services is advertised as a start-up regional mortgage lender specializing in conventional, Federal Housing Administration (FHA), and Veterans Administration (VA) loans for home purchasing and refinancing. The firm’s planned base of operations is in Boise, Idaho, and will open seven other offices in four states (Montana, North Dakota, South Dakota, and Wyoming). However, risk mitigation is a concern before any of the offices legitimately open for business.

In response to service request SR-mf-006 (initiated by Hugh McBride, founder, and Chief Executive Officer (CEO) of McBride Financial Services) a risk assessment performed on the area surrounding Boise, Idaho identified five distinct risk factors (hazards, accessibility, crime, high-profile locations, and safety). This report provides insight to each risk and includes recommendations for risk mitigation. These strategies as suggested in Barr’s (2005) article, increase awareness and preparedness thus decrease vulnerabilities.

Flood Risk

The location for McBride Financial Services in Boise, Idaho is one mile from the river. The possibility of flooding is genuine because a combination of snow melt and heavy rains would overwhelm existing measures. The present level of protection consists of three dams providing a 50-year average flood protection. The intention to raise the level to a 100 year standard is on the drawing board, but no firm decisions have been made by the U.S. Army Corp of Engineers (Wilkins, 2010). The river floods very 25 to 40 years, and the last major flood was 25 years ago (Wilkins, 2010). The proximity of the river requires a serious review of flood risk for the Boise location.

The risk assessment team evaluation of the risk of flooding is high to moderate because there has been no flooding in recent years, and the decision to increase the level of flood control is under evaluation. The location is in an urban area, so there should be warning if flooding may occur. The urban location also offers several escape routes or the ability to access upper floors