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A Broader Vision of Risk
Recognizing that dynamic financial, business and political
forces are changing the nature of business and risk management,
ABS Consulting is offering an integrated and robustly analytical
approach to Enterprise Risk Management (ERM). Linking the
understanding of risk with better financial and operational
decision-making, our ERM consulting team focuses on assisting
clients to develop appropriate risk frameworks, use focused
risk analytics and processes to create and implement comprehensive
risk-adjusted solutions. The goal of the Enterprise Risk Management
approach is to promote economic growth, better utilization
of capital resources and competitive advantage.
In our view, ERM is not an entirely new initiative because
organizations already manage some risks in “silos”.
Rather, ERM is the maturation of the successful management
of risk in “silos” into an inclusive, integrated
approach. ERM is a process, unique to an organization; not
a product or bundle of solutions.
The objective of employing an ERM approach to evaluate the
organization’s risk profile would be to assist the company
to better understand and exploit its risk profile in order
to create a sustainable competitive advantage. A key focus
would be to use ERM to calibrate and align the company’s
risk profile with its risk management processes and strategic
finance and operational goals.
The types of questions that are answered using our ERM approach
might include:
- How should the company define risk?
- What metrics should the company employ to measure risk?
- What are the company’s material risks?
- How frequently could these risks occur?
- What is the economic severity of these risks over time?
- What are the interrelationships between the various material
risks?
- When assembled in a portfolio, what is the aggregate risk
to the company?
- What are the company’s current risk mitigation methods
and are they effective?
- Is the company’s risk portfolio contributing to,
or detracting from, the company’s economic and operational
strategy?
- What elements of the company’s risk portfolio represent
an opportunity for the company to achieve sustainable competitive
advantage or increase customer service value?
How do you start on the ERM journey?
Our approach to ERM is to not bill it as a new initiative
because your organization already manages some risks, albeit
in “silos”. Instead ERM ought to leverage and
build on past successes – view it as the maturation
of the successful management of risk in “silos”
into an inclusive, integrated approach that is uniquely shaped
to suit your organization.
We recommend an Envisioning Process as the first step on
your organization’s ERM journey. The envisioning process
delivers a preliminary risk profile for your organization
and a clear plan for the rest of the ERM journey.
The central activity of the Envisioning Process is a workshop
where the proper risk constituencies of your organization
are represented. At the workshop, the representatives:
- Calibrate their thinking with respect to risk, risk management,
and ERM
- Clarify definitions of risk and risk metrics
- Work through a preliminary mapping of risks that were
gathered from them individually before the workshop
- Create a framework within which your organization can
move forward with ERM according to a high-level plan.
Completing the Envisioning Process with our facilitation
and expert guidance will result in several significant accomplishments
by your organization:
- A preliminary risk assessment, validated by your risk
constituencies, presenting the key risk issues at your organization.
- A summary of current risk management activities in your
organization and how they fit into an ERM framework.
- Consensus among your risk constituencies about what is
required for ERM at your organization.
- A high-level plan by your risk constituents for your
organization to move forward on the ERM journey.
RFactor can assist your ERM journey:
- Facilitate the envisioning process.
- Advance an ERM approach, tailored to your organization,
which is likely to be successful and meaningful.
- Help your business units develop and practice their own
forms of risk management in accordance with your overall
ERM objectives and beliefs.
- Provide ERM-related software systems and enabling technology.
- Provide training in risk management capabilities and
best practices.
Why choose RFACTOR?
Our focus is on knowledge transfer. Rather than do work for
clients, we communicate the expertise to them so they can
do it themselves. This focus on knowledge transfer has key
advantages:
- It empowers your people.
- It minimizes our involvement, which minimizes your cost.
- There are no "black box" services ... we make sure you
understand everything.
We have the risk management expertise:
- Leading-edge methodologies, tools, and models that are
continually being improved,
- Scientific, engineering and management consulting experts
for risk identification, assessment and mitigation,
- Experience gained from addressing a variety of risks
and risk management challenges in a broad spectrum of industries
and public sector organizations, and,
- Training seminars to teach the methodologies, tools and
modeling techniques to clients.
We can integrate systems, software and services to provide
a rationale for effective decision-making. We can implement
a sustainable risk management capability, infrastructure and
training to enable your organization to execute its enterprise
risk management strategies.
At RFactor, we take pride in our commitment
to our clients: quality, service and knowledge transfer. As
your risk management consultant, our goal is to exceed your
expectations, not just meet them.
We believe our specific capabilities and experience, as well
as our independence, make RFactor a uniquely
valuable partner for your organization.
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