Chapter 26
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Chapter26-29Slides.pptxITS 835 enterprise risk management Chapter 26-29
Review of 4 Mini case studies on ERM and Risk
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overview
Collection of four mini-cases
Leaves open ended questions
Presents real life situations
And needs for ERM
Mini-Cases
BimConsultants Inc.
Nerds Galore
The Reluctant General Counsel
Transforming Risk Management at Akawini Copper
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Bim Consultants Inc.
Consulting firm
10 offices in Canada
3,000 staff
30 partners
“Customers are number one”
But revenue is stagnant
Opportunity to buy out competitor
Purchase would double size and sales
Negotiations must be kept confidential
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Nerds galore
Canadian IT service company
12 offices
1,000 employees
Grew from founder’s garage
Shift from small start-ups to medium size customers
High turnover of 20% is causing concern
Decreasing customer satisfaction
Steady revenue (for now)
Strategy from new HR VP
Attract the best talent
Retain good people
Manage talent
Optimize the use of people
Rely on outsourcers
Executive team workshop to explore HR risks
Inability to recruit people with needed skills
Loss of staff with key internal knowledge
Uncompetitive labor production
Increased departures of skilled technical staff
Loss of key business know-how
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The Reluctant General Counsel
Business Software Corporation (BSC)
Silicon Valley, CA
Annual revenue over $1 billion
Board wants ERM
Upper management supports establishing ERM
EVP of development and general counsel
Doesn’t want to be involved in ERM
Risk discussions could be discoverable in lawsuits
U.S. Securities and Exchange Commission (SEC)
Requires disclosure of risks
Recommendation is to not formally pursue ERM
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Transforming Risk Management at Akawini Copper
Akawini Copper
Mining company acquired by larger United Minerals
Single mine and plant • $774 million in revenue
1,500 employees
United Minerals implemented ISO 31000 framework
Substantially more sophisticated than Akawini’s RM
Launched project to transform Akawini RM to ERM
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