Implementing Enterprise Risk Management: Case Studies and Best Practices

  • 13h 54m
  • Betty J. Simkins, John R.S. Fraser, Kristina Narvaez
  • John Wiley & Sons (US)
  • 2015

Overcome ERM implementation challenges by taking cues from leading global organizations

Implementing Enterprise Risk Management is a practical guide to establishing an effective ERM system by applying best practices at a granular level. Case studies of leading organizations including Mars, Statoil, LEGO, British Columbia Lottery Corporation, and Astro illustrate the real-world implementation of ERM on a macro level, while also addressing how ERM informs the response to specific incidents. Readers will learn how top companies are effectively constructing ERM systems to positively drive financial growth and manage operational and outside risk factors. By addressing the challenges of adopting ERM in large organizations with different functioning silos and well-established processes, this guide provides expert insight into fitting the new framework into cultures resistant to change.

Enterprise risk management covers accidental losses as well as financial, strategic, operational, and other risks. Recent economic and financial market volatility has fueled a heightened interest in ERM, and regulators and investors have begun to scrutinize companies' risk-management policies and procedures. Implementing Enterprise Risk Management provides clear, demonstrative instruction on establishing a strong, effective system. Readers will learn to:

  • Put the right people in the right places to build a strong ERM framework
  • Establish an ERM system in the face of cultural, logistical, and historical challenges
  • Create a common language and reporting system for communicating key risk indicators
  • Create a risk-aware culture without discouraging beneficial risk-taking behaviors

ERM is a complex endeavor, requiring expert planning, organization, and leadership, with the goal of steering a company's activities in a direction that minimizes the effects of risk on financial value and performance. Corporate boards are increasingly required to review and report on the adequacy of ERM in the organizations they administer, and Implementing Enterprise Risk Management offers operative guidance for creating a program that will pass muster.

About the Authors

JOHN R.S. FRASER is the Senior Vice President of Internal Audit and former Chief Risk Officer of Hydro One Networks Inc. He holds several auditing and accounting certifications and has over 30 years of experience in the risk and control field.

BETTY J. SIMKINS is the Williams Chair and Professor of Finance at Oklahoma State University's Spears School of Business, where she teaches enterprise risk management and other courses. She has published award-winning research on risk management in academic and professional outlets.

KRISTINA NARVAEZ is President and CEO of ERM Strategies. Her work in risk management has been recognized with accolades and awards from numerous organizations, including the Risk and Insurance Management Society.

In this Book

  • Foreword
  • Enterprise Risk Management Case Studies—An Introduction and Overview
  • An Innovative Method to Teaching Enterprise Risk Management—A Learner-Centered Teaching Approach
  • ERM at Mars, Incorporated—ERM for Strategy and Operations
  • Value and Risk—Enterprise Risk Management at Statoil
  • ERM in Practice at the University of California Health System
  • Strategic Risk Management at the LEGO Group—Integrating Strategy and Risk Management
  • Turning the Organizational Pyramid Upside down—Ten Years of Evolution in Enterprise Risk Management at United Grain Growers
  • Housing Association Case Study of ERM in a Changing Marketplace
  • Lessons from the Academy—ERM Implementation in the University Setting
  • Developing Accountability in Risk Management—The British Columbia Lottery Corporation Case Study
  • Starting from Scratch—The Evolution of ERM at the Workers' Compensation Fund
  • Measuring Performance at Intuit—A Value-Added Component in ERM Programs
  • TD Bank's Approach to an Enterprise Risk Management Program
  • A Strategic Approach to Enterprise Risk Management at Zurich Insurance Group
  • Embedding ERM into Strategic Planning at the City of Edmonton
  • Leveraging ERM to Practice Strategic Risk Management
  • Developing a Strategic Risk Plan for the Hope City Police Service
  • Blue Wood Chocolates
  • Kilgore Custom Milling
  • Implementing Risk Management within Middle Eastern Oil and Gas Companies
  • The Role of Root Cause Analysis in Public Safety ERM Programs
  • JAA Inc.—A Case Study in Creating Value from Uncertainty—Best Practices in Managing Risk
  • Control Complacency—Rogue Trading at Société Générale
  • The Role of VaR in Enterprise Risk Management—Calculating Value at Risk for Portfolios Held by the Vane Mallory Investment Bank
  • Uses of Efficient Frontier Analysis in Strategic Risk Management—A Technical Examination
  • Bim Consultants Inc.
  • Nerds Galore
  • The Reluctant General Counsel
  • Transforming Risk Management at Akawini Copper
  • Alleged Corruption at Chessfield—Corporate Governance and the Risk Oversight Role of the Board of Directors
  • Operational Risk Management Case Study—Bon Boulangerie
  • Constructive Dialogue and ERM—Lessons from the Financial Crisis
  • Challenges and Obstacles of ERM Implementation in Poland
  • Turning Crisis into Opportunity—Building an ERM Program at General Motors
  • ERM at Malaysia's Media Company Astro—Quickly Implementing ERM and Using it to Assess the Risk-Adjusted Performance of a Portfolio of Acquired Foreign Companies