Tag Archives: Enterprise Risk Management

A Case Study on Enterprise Risk Management: Allstate Inc.

In 2000, The Allstate Corporation started on an exciting and uncharted new course: to become an early insurance industry adopter of enterprise risk management (ERM). It has been a complex journey that has helped provide a deeper insight into the company’s underlying risk profile, enhanced the way Allstate manages risk in several significant ways and helped generate actions to better exploit risk opportunities.

The company’s initial effort began some years earlier at the direction of then-CFO, Tom Wilson, who established new capital allocation and valuation models for use in the finance function. Later, as Wilson moved into an operating role, John Carl joined Allstate as CFO and asked his staff what the company’s risk-adjusted returns were. A series of conversations resulted in a decision to explore developing a more quantitatively rigorous approach to measuring risk, similar to what was practiced in the oil and gas industry. Click here to read more…

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Case Study on Murray & Roberts Holdings Ltd

The Murray & Roberts enterprise risk management process is governed by the group risk framework which is adopted by all operating company boards and executive committees. The process is applied in all areas of potential exposure to risk, including acquisitions, capital expenditure, project management, health, safety & environment management and brand integrity. Risk assessments are conducted biannually at group level, to support interim and year-end financial reporting, annually at operational level as part of the three year business planning process, and at a project level as part of bid preparation and project implementation. Read more..

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Case Study on Northern Gateway Alliance

Case Study about Northern Gateway Alliance

Overview: The Northern Gateway Alliance (NGA) was formed in March 2004 and is comprised of eight organisations; the New Zealand Transport Agency, Leighton Contractors, Fulton Hogan, URS New Zealand, Tonkin & Taylor, Boffa Miskell, United Group and VSL. The Alliance is responsible for the design and build of the northern motorway expansion between Orewa and Puhoi, known as the Northern Gateway Toll Road in New Zealand. The road passes through a diverse landscape containing steep topography, large tracts of native bush, streams, estuaries and areas of pastoral farmland. As at August 2008 the 7.5K motorway was around 85% complete.





Active Risk Manager – The Solution: Active Risk Manager was purchased in 2006. The Enterprise Risk Management (ERM) process provided by ARM means there is a systematic focus on risk; a true picture of the risk situation across the whole project is presented at any one time. Using ERM helps to connect the dots across an operation, enabling the best decisions to be made based on both risk and opportunities. ARM provides a proactive solution to risk management required to ensure budgets and time schedules are adhered to by all the members of the Alliance.The Northern Gateway Alliance also uses Primavera, project and portfolio software as its project controls ‘hub’ and for data integration.

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Case Study on Amlin Embeds Risk Management Processes

Case Study about Amlin Embeds Risk Management Processes

Communication and Visibility of Risk Across The Organization: Amlin required a technology solution for its enterprise risk management process that would further enable it to effi ciently and effectively embed risk across the organization. An additional consideration was compliance with Solvency II, the European regulatory capital regime for the insurance industry Risk Manager





Embedding Risk Management: Amlin chose Active Risk Manager from Active Risk as its enterprise risk management solution because it provided Amlin with top-down and cross organisational views of risks and opportunities. Using a single system supports the operational needs of the business, enabling risk managers to see the information that is relevant to them.

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Case Study on Eurocopter

Case Study about Active Risk Manager: Eurocopter

Overview: Eurocopter, world leader in the civil and parapublic helicopter market and Europe’s largest manufacturer of defence helicopters, and its parent company EADS Group, have been using Active Risk Manager (ARM) since 2006 to manage project and business risk. The ARM technology forms the central reference point at Eurocopter for all risk data and risk management practices, from projects and contracts to compliance objectives and governance activities. The proven ARM enterprise risk management solution has created a structured framework of consistent risk management processes to save time and enhance productivity across the enterprise.





The Challenge: Eurocopter has the most comprehensive and versatile range of helicopters in the world with more than 2,800 customers in 147 countries. Eurocopter believes that Enterprise Risk Management (ERM) is pivotal to managing the organization’s complex and global business effectively. To drive the business forward, Eurocopter required a robust, automated solution that could be used by all subsidiary companies and offices around the world to guarantee a consolidated risk picture for the Chief Executive and Executive Committee.

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Case Study on Enterprise Risk Management: Raytheon

The Challenge: With a history of innovation spanning 90 years, Raytheon provides state-of-theart electronics, mission systems integration and other capabilities in the areas of sensing, effects, command, control, communications and intelligence systems, as well as a broad range of mission support services. Prior to implementing an Enterprise Risk Management (ERM) program, Raytheon had insufficient understanding of how risk affected its projects. The culture at Raytheon was reactive and not truly risk-aware.





The focus was on fixing problems and putting out fires, rather than a proactive approach of identifying and preventing problems before they occurred. Raytheon’s brightest thinkers were engaged almost exclusively with their daily tasks of technical scope, rarely able to raise their heads to look at the big picture or gain visibility of the risk landscape…
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Case Study on Active Risk Manager: Eurocopter

Overview: Eurocopter, world leader in the civil and parapublic helicopter market and Europe’s largest manufacturer of defence helicopters, and its parent company EADS Group, have been using Active Risk Manager (ARM) since 2006 to manage project and business risk. The ARM technology forms the central reference point at Eurocopter for all risk data and risk management practices, from projects and contracts to compliance objectives and governance activities.





The Challenge: Eurocopter has the most comprehensive and versatile range of helicopters in the world with more than 2,800 customers in 147 countries. Eurocopter believes that Enterprise Risk Management (ERM) is pivotal to managing the organization’s complex and global business effectively. To drive the business forward, Eurocopter required a robust, automated solution that could be used by all subsidiary companies and offices around the world to guarantee a consolidated risk picture for the Chief Executive and Executive Committee..
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Case Study of Northern Gateway Alliance

Using an enterprise risk management (ERM) model was an ideal way to gain visibility of risk and opportunity that each individual project carries as well as having the capability to summarise those risk and opportunity items across the entire portfolio of the Northern Gateway Alliance and Active Risk Manager has been integral in that ERM process.
Tim Davis, Project Optimisation, Northern Gateway Alliance.



The Northern Gateway Alliance (NGA) was formed in March 2004 and is comprised of eight organisations; the New Zealand Transport Agency, Leighton Contractors, Fulton Hogan, URS New Zealand, Tonkin & Taylor, Boffa Miskell, United Group and VSL. The Alliance is responsible for the design and build of the northern motorway expansion between Orewa and Puhoi, known as the Northern Gateway Toll Road in New Zealand. The road passes through a diverse landscape containing steep topography, large tracts of native bush, streams, estuaries and areas of pastoral farmland.






As at August 2008 the 7.5K motorway was around 85% complete. The NGA structure is similar to that of any enterprise, it has four sub projects under the NGA umbrella. These are earthworks, structures, tunnels and general. Each of these four sub projects are split again into zones such as bridges, tunnels, packages of work etc. There are also sub projects under Structures and Tunnels. Click here to view more for Northern Gateway Alliance


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Link Between Decision-Making and ERM: A Case study

Enterprise risk management is a process, effected by an entity’s board of directors, management and other personnel, applied in a strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risks to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.
Committee of Sponsoring, Organizations of the Treadway, Commission (COSO), Enterprise Risk Management–Integrated Framework (2004).



Enterprise Risk Management (ERM) is not a separate, isolated process performed outside of normal business processes. Quite the contrary, ERM, similar to fraud prevention, ethics and internal controls, is integral to an organization’s success. it should be imbedded into and integrated within organizational strategy and incorporated into an organization’s core activities. erM needs to become part of organizational culture.Once the risks are identified and assessed, executive leadership must establish a plan to manage and monitor those risks. Find out more information on Link Between Decision-Making and ERM






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Case Study on Raytheon

The Challenge: With a history of innovation spanning 90 years, Raytheon provides state-of-theart electronics, mission systems integration and other capabilities in the areas of sensing, effects, command, control, communications and intelligence systems, as well as a broad range of mission support services. Prior to implementing an Enterprise Risk Management (ERM) program, Raytheon had insufficient understanding of how risk affected its projects…






The Solution: The SolutionIn 2011, Raytheon launched an ambitious Enterprise Risk Management program designed to change its risk culture from reactive to proactive, and to accurately forecast and mitigate the impact of risk on key programs. Raytheon’s ERM program is underpinned by Active Risk’s ARM (Active Risk Manager) software. In addition to identifying risks and showing their interconnectivity, ARM is also a critical tool in Raytheon’s metrics reporting – the means by which the Company measures behaviors and reports each month to its management team…
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