Case Study # 1
Industry
Transport and logistics (national)
Issue of Concern
This organisation required the creation of an overall risk management set of standards whcih would allow them to improve the costs associated with their risks, provide them with competitive advantage in the pricing of their services as well as to be able to show clients and prospects that they could minimise their costs via their risk management systems.
Timing
Commenced in 2001 and is ongoing.
Agreed Resolution
An initial "risk profiling" exercise was agreed to so as to clearly assess the state of play of the organisation in its overall management of risk. This would then allow for a risk management system to be created, implemented and then assessed in an ongoing manner.
Outcomes
The risk profiling exercise was able to categorise risks and thus assist in the customisation of the risk management system specifically to the organisations trading and operational conditions. It has been used in a number of new business situations to demonstrate the high level of control they are able to provide clients when they take up "outsourced" solutions.
Current Position Post Resolution
This organisation has recently completely reviewed this system given a material shift in the size and nature of its business operations. This was facilitated by RiskTech so as to ensure the latest thinking was brought to bear as well as ensuring compliance with current regulations and codes of practice etc..
Case Study # 2
Industry
Food retailer (national)
Issue of Concern
Client had arrived at a point, following rapid expansion, where the executive management needed to be fully aware of the nature of its risks from a corporate governance perspective. There was also concern as to the lack of a formal assessment mechanism and that this was now necessary so as to be able to more effectively consider the risk implications of its ongoing expansion programme.
Timing
Activity commenced in mid-2007 and is ongoing.
Agreed Resolution
A detailed risk profile was to be undertaken of the business which involved assessing all areas of its operation and would actively involve various levels of staff so as they would benefit from the process and improve their own level of risk awareness for use in everyday administration and management of the business.
Outcomes
The profile identified a variety of issues which had hitherto not been assessed as having the impact upon them that was shown out of this exercise. This has commenced a process of reconsidering a variety of strategic activitis with due focus upon the risk issues and what exposure is created for the entity if these are not properly managed. There is also now a commitment to create an overall risk management system to control.
Current Position Post Resolution
This organisation has established a new level of awareness of its risk management obligations and is currently in the process of implementing the changes and systems that the profiling exercise provided. It is also envisaged that various elements of their insurance programme will now be altered to reflect a "true" risk profile with subsequent savings in lower insurance premiums.