Contractor Risk Assessment
Dendro Resource Management, Inc. is pleased to announce a new, comprehensive contractor risk assessment process. We utilize contractor risk assessments to help prevent theft and fraud, to promote the theft and fraud hotline, and to assess the risk each contractor presents to you, the timberland owner.
In the past, contractor risk assessments were accomplished by utilizing a standard set of questions ranging from crew composition to timber security system utilization. Data gathered from years of conducting this process has been instrumental in creating an improved risk assessment process that is even more accurate, more objective, and more cost effective. We have worked closely with Stang Decision Systems, a company that specializes in decision science technology, to enhance the contractor risk assessment process and on-site interviews. The new process will provide a calculated risk rating using a validated algorithm that encompasses over 40 different parameters. This science-based approach adds several key benefits.
Benefits of a Contractor Risk Assessment
1. It provides an objectively derived Risk Score that complements the expert’s Risk Score, which is derived via professional judgment.
2. Over time, discrepancies between expert judgment and the calculated score highlight potential improvement zones both for the expert and the algorithm (i.e., each helps the other get better). In fact, the initial algorithm was back tested using over three years of expert judgment ratings.
3. The interview process will be similar to the one you’re already familiar with, but additional questions have been added to identify additional risk character traits associated with each contractor.
4. The new model adjusts to account for who is being interviewed, size of the organization, regional differences, crew characteristics and many other factors that are relevant to overall risk.
5. As more data is added to the database, the model will actually “learn as it goes” to provide ever better risk ratings.
6. Going forward, the database will include all DRM clients’ data (those who utilize contractor risk assessments). As the database grows, so will the model’s accuracy.
How Can Contractor Risk Assessment Help?
Dendro Resource Management has years of experience working in the timber industry which has enabled us to gain all the tools and tricks of the trade to carry out a comprehensive contractor risk assessment audit wherever needed.
If you are a forester, producer or a company looking to hire someone to conduct a contractor risk assessment that leaves no stones unturned and follows the best practices, we are here for you. Get in touch with us today and one of our audit experts will be there to assist you!