ERM_Week9_Dis
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Chapter22Slides.pptxITS 835 enterprise risk management Chapter 22
ERM - JAA Inc. –A Case Study in Creating Value from Uncertainty
University of Cumberlands
1
introduction
Business background
Initial steps
Evolution of Risk Management
Introduction of ISO 31000 and HB 436 to JAA
Bringing everything together
University of Cumberlands
2
Business background
JAA is a clothing wholesaler and retailer
Founded in 1972
Went public in 1998
Three operating segments
U.S. wholesale
U.S. retail
International (wholesale and retail)
57 retail stores in 10 countries
University of Cumberlands
3
Initial steps
Strategic objectives
Maintain market leadership
Sustain technology leadership
Strengthen global presence
Deliver quality service
A leader in compliance with all laws and regulation
Establish a governance system
Multiple committees, each with specific responsibilities
University of Cumberlands
4
Governance framework
University of Cumberlands
5
Evolution of risk management
Lack of strategic risk management led to many problems
Communication
Missed/lost opportunities
Lack of commitment to objectives
Declining quality
Identified gaps in risk management
Engaged in aggressive internal training
Soft skills
Team building
Management planning
University of Cumberlands
6
Introductions of iso 31000 and hb 436
JAA adopted ISO 31000
HB 436 provided extensive implementation guidance
ISO 31000 was basically an upgrade of the framework JAA was already using
ISO 31000 framework formalized JAA’s ERM
Defined organization and process
University of Cumberlands
7
Using context for risk criteria
University of Cumberlands
8
Bringing everyone together
University of Cumberlands
9
Risk map
University of Cumberlands
10
Risk attitude
University of Cumberlands
11
