srm
KenyanPR
ITS835_Chapter_221.pptx
ITS 835
Chapter 22
JAA Inc. – A Case Study in Creating Value from Uncertainty
Introduction
Business background
Initial steps
Evolution of Risk Management
Introduction of ISO 31000 and HB 436 to JAA
Bringing everything together
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
Initial Steps
Strategic objectives
Maintain market leadership
Sustain technology leadership
Strengthen global presence
Deliver quality service
A leader in compliance with all laws and regulations
Establish a governance system
Multiple committees, each with specific responsibilities
Governance Framework
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
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
Using Context for Risk Criteria
Bringing Everything Together
Risk Map
