Enterprise Risk Management when seeking new opportunities
Our client, a Fortune 1000 company, engaged Control Risks to help fulfil a mandate from its board of directors to formalise and enhance its existing ERM programme. The client wanted to implement a “bottom-up” risk identification process that would be approved by senior leadership and shared with the board of directors, while preventing significant risks from negatively affecting its business and enable opportunities in potentially risky ventures in the future.
Control Risks' approach
- We developed a risk identification tool with standardised risk metrics and definitions to capture risk information.
- Working with each of the client’s divisions, we conducted risk workshops to arrive at an agreed list of top risks and to brainstorm potential mitigation strategies.
- We aggregated and standardised risks across these divisions and created an enterprise-wide list of top risks.
- Finally we assisted the client with developing its risk ownership, monitoring and governance structure.
- The client utilised the enhanced ERM programme to identify and mitigate its top risks.
- Risk mitigation strategies were undertaken to lower the company’s profile in advance of new acquisitions and market entry, helping to enable profitable opportunities.
- Updates on the ERM programme are presented to the board of directors on a quarterly basis; the board maintains confidence in the client’s approach to risk management.