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FAQ about DGGR
What is the Druml Group Construction Risk Assessment Rating?
Why is there a need for Risk Assessment in the Construction Industry?
Who stands to benefit from a DGR Rating™?
What companies are candidates for a "digger" rating™?
How is the "digger" rating determined?
What are the factors considered in a "digger" rating™?
Will I be able to view the results of your assessment?
How often can I have a rating performed?
Am I able to find out how the rating is determined?
What is the cost of a "digger" rating™?
Who normally pays for the rating?
Why should I consider the "digger" rating™ as a solution?
Where can I get a Druml Group Risk Rating™™?
What is the Druml Group Construction Risk Assessment Rating?
The Druml Group Risk Rating® (or DGRR®) commonly referred to as the "digger" rating™ is a scientific measurement of the risk associated with providing credit, insurance, or guarantees to a construction company. The rating is determined by a "hands-on" audit of a construction company in cooperation with its management.
Why is there a need for Risk Assessment in the Construction Industry?
History has proven that financial reports alone are not a sufficient measure of a company's overall strength. Many other factors contribute to the strength of a company and probability for it to remain a healthy and viable concern. All too often, companies that are viewed healthy now are surprisingly unhealthy a short time later. The purpose of a risk assessment is to provide a real-time measurement of failure risk associated with a company's current internal health as determined by important factors other than financial reports.
Who stands to benefit from a DGR Rating™?
A "digger" rating™ helps all parties exposed to construction risk. Most importantly, our rating systematically identifies weaknesses in a construction company and provides a "to do" list to strengthen the organization. Our business and financial group provides expert services that will rectify any weaknesses that are identified.
What companies are candidates for a "digger" rating™?
While some companies have sufficient financial strength raising little concern about viability, other companies are not nearly as stable. The "digger" rating™ is most applicable to construction companies that may appear marginal in financial strength, or ones that could be in financial jeopardy if current projects were to under-perform. Although the "digger" rating™ applies to more doubtful cases, the rating is useful to well-healed companies as well because it identifies areas of needed improvement.
How is the "digger" rating™ determined?
The "digger" rating™ is determined by measuring the level of failure risk that exists within a construction company. Criteria that are measured focus on the business side of the organization and the quality of financial-related systems and controls. The rating is a weighted average of scores relating to business structure, internal systems, accounting procedures, cost control, efficiency, preventative measures, negative exposure and contingency plans.
What are the factors considered in a "digger" rating™?
There are over 55 measurements of strength that are taken into consideration to determine a "digger" rating™. The measurements of strength are called "factors" in so much as they are factors that make up the rating of potential risk. Each factor is a detailed system, plan, procedure, method, policy, or safeguard that does or does not exist within a construction company. The factors are measured by identifying weaknesses or danger points that cause associated levels of uncertainty and result in exposure to risk.
Will I be able to view the results of your assessment?
Yes. The result of all factors taken into consideration is made available to the client that ordered the analysis.
How often can I have a rating performed?
A rating for any one company can be performed on a bi-annual basis. Experience dictates that it takes approximately six-months for an organization to undergo any significant change once management determines that changes are needed. Thus, a "digger"™ re-rating is provided only after sufficient time has passed to allow for internal changes to occur.
Am I able to find out how the rating is determined?
No, the method of rating is proprietary. The reasoning used to determine the risk level of an associated factor is confidential and reserved for the Druml Group only. Druml Group provides many samples of ratings that provide a benchmark of how the rating is determined and the level of importance of individual factors.
What is the cost of a "digger" rating™?
The cost of a "digger" rating™ is dependant on the size of the firm being rated. Our strict standards make it necessary to judge each firm on a case-by-case basis. We provide a not-to-exceed figure based on the revenue of the organization at the end of the most recent fiscal year.
Who normally pays for the rating?
The party under review normally pays for the rating. Typically, banks, bonding companies, guarantors, or credit providers will pass this cost on to the client as a necessary measurement of potential risk and prerequisite for conducting business.
Why should I consider the "digger" rating™ as a solution?
No other rating exists that will measure the credit-worthiness and failure risk of a construction company by performing a detailed assessment of critical individual factors to determine associated levels of uncertainty and a resultant overall exposure to risk.
Where can I get a Druml Group Risk Rating™?
A "digger" rating™ is available anywhere in the United States. Transportation originates from San Francisco with plans to open other centrally located offices.
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