We manage more than a quarter billion dollars of premiums for a diverse range of clients around the globe.
I recently attended the Enterprise Risk Management Roundtable Summit in North Carolina held by NC State University that included representatives from Harley Davidson and Caterpillar among the speakers. This summit helped me gain insight into the emerging importance of a comprehensive risk management program and different strategies the companies have implemented.
A recent Wall Street Journal article about a high profile factory accident, this time in Cambodia, brings new emphasis to the fallout that can arise from supply chain risk. Asics Corporation, the Japanese sport shoe manufacturer, sourced some of its shoes from a factory in Phnom Penh. In April 2013, a mezzanine floor collapse killed a young father and a young woman who, reportedly, was only 15. The incident also injured a number of other workers. Fallout from the incident was almost immediate. Asics instructed its nine suppliers in Cambodia to join Better Factories Cambodia, which keeps tabs on working conditions in the Cambodian garment industry.
To continue the discussion of Enterprise Risk Management (ERM) and its role within the business world The ALS Group held its second ERM meeting to discuss recent articles that show the influence of ERM today in business. One periodical that often speaks of ERM is Rough Notes. This week’s discussion revolved around The Institutes update of the ARM course curriculum to include ERM into its material; see here for the article written by Michael Moody.
It seems like everyone is talking about Enterprise Risk Management (ERM) these days, but the question has become: what is anyone doing to further understand how ERM can provide the strategic value that everyone is writing about? One initiative that we at The ALS Group kicked off last Friday is our bi-monthly ERM Work Group meeting where our entire team (and occasionally guests) meet to discuss how ERM is being conveyed to senior level executives through organizations like RIMS and CFO magazine to name a few.
Enterprise Risk Management, despite being on the tip of the risk and insurance world’s tongue, is still struggling to gain a foothold in most organizations. The question that consistently emerges is whether or not implementing an Enterprise Risk Management Framework can truly add value to a company’s strategic development. The key to a successful ERM Framework is to instill the philosophies of Enterprise Risk Management throughout the organization so the company as a whole is fostering a risk-aware culture.
Risk Management used to be merely a wing that purchases insurance for multi-million dollar companies. Over the years Risk Management has begun to evolve and play a more strategic role within a company. This evolution is evidenced by companies’ adoption of Enterprise Risk Management (ERM) philosophies integrating them throughout organizations. One example of such integration is the relationship that is developing between Internal Audit and the Risk Management departments.
The recent London Olympic Games drew a total of over 219.4 million viewers over the course of 14 days. What people don’t realize is the way Risk Management factored into the success that was the 2012 London Olympics. In particular, the use of Strategic Risk Management was employed by the Olympics Organizers to evaluate and implement risk mitigation policies and procedures for the Games of which the general public was not even aware. A recent article by Will Jennings in Harvard Business Review, “The Olympics as a Story of Risk Management”, looks at the Games from a Risk Management perspective. The article reveals how the International Olympic Committee (IOC) evaluated
With the end of the year rapidly approaching, one of the most significant “lessons learned” in 2012 was that Disaster Recovery (DRP) or Business Continuity Planning (BCP) are critical parts of any business’ overall strategic plan.
So you may have received a Certificate of Insurance (COI) from your vendor, and you feel comfortable that its employees now can be allowed on your building’s property. To you this may seem like they have given you a familiar card from Monopoly. With your supposed “get out of jail free” card, you allow vendors access to your building and allow contractors to perform work on your property. However, you may not be as “free” as you think.
As a result of several natural disasters occurring in significant industrial areas, the crucial importance of supply chain risk management has been brought to the forefront over the past year. Ongoing floods in Thailand (the worst they have experienced in almost seven decades) have exacted a harsh economic toll on two of Japan’s largest auto companies, Toyota and Honda, causing production disruptions that could last for up to three months.
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At The ALS Group, we help clients achieve their strategic goals via expert and insightful identification, quantification, and mitigation of the risks that could impact their business, or present opportunities for it.
More Information: [email protected]
Florida
1800 NW Corporate Blvd Ste 202
Boca Raton, FL 33431
Tel: +1-561-437-0024
At The ALS Group, we help clients achieve their strategic goals via expert and insightful identification, quantification, and mitigation of the risks that could impact their business, or present opportunities for it.
More Information : [email protected]
New Jersey
175 Main St
Woodbridge, NJ 07095
Tel: +1-732-395-4250
Florida
1800 NW Corporate Blvd Ste 202
Boca Raton, FL 33431
Tel: +1-561-437-0024
