Integration of various components of risk management (strategic risk, resilience, insurance, crisis management, security, HS&E, IT-disaster recovery) provides the basis for risk governance. Many people hate the term governance because it sounds restrictive and onerous. At Solomon-Joseph, we believe that companies can have governance that adds value without it being a major drag on resources.
At the heart of Integrated Risk Management, we are talking about enhanced coordination and communication between groups. The ultimate goal is to avoid duplication of effort (waste) and enhance how an organization prepares for, responds to and recovers from adverse events.
In working with you to design an integrated risk program, we focus foremost on understanding your requirements based on the industry, company size, geographical footprint and future growth plans. Yes, there are core components to any risk program, but it is our mission to help you determine what makes sense right now (current state) while positioning with a model that can scale as you grow (future state).
INTEGRATED RISK MANAGEMENT SERVICES:
COMMON INTEGRATED RISK MANAGEMENT ISSUES
We've come up with some common scenarios that many businesses find themselves in when it comes to integrated risk management. If any of these sound familiar, take our 60 second profile below to get a better idea for where your company stands.
RISK STAKEHOLDER COORDINATION
Last month, as we started to develop a business continuity plan for the corporate office, our corporate security director began pushing back. She claims that it’s unnecessary and refuses to participate. She said that her site security plan covers all incidents relating to the corporate office.
Our business unit is 50% smaller than other businesses across the company; however, we are subject to the same risk threshold. The company has set a $20M USD adverse impact on the corporate P&L. We are only a $7M USD business annually; however, we are very profitable due to our relatively high contribution margin of 75%. Because of the tolerance level, our risks never rise to a level to get the attention of leadership so they continue to go untreated. It’s very frustrating!
RISK GOVERNANCE/ RISK REGISTER
Our executive team comes from the operations side of the house so they are focused on the bringing in the engineering talent to focus on our core competencies as an automotive OEM supplier. As we expand and grow the business, however, it is clear that we need to develop a more complete picture of our risks before we get blindsided by something that may be avoidable. As CFO, I have responsibility for managing our credit risks, insurance and IT, but that’s only part of the picture. We need someone who can help us get more organized in managing our enterprise risks.
60 SECOND PROFILE
Quiz yourself below to see how integrated your risk management is: