Subject Name: Enterprise Risk Management
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ITS835-Chapter3.pdf
Chapter 3 ERM at Mars, Incorporated: ERM for Strategy and Operations
ITS 835
Introduction
▪ Mars’ ERM history
▪ Global rollout
▪ Reporting
▪ Operating workshops
▪ Conclusion
Mars’ ERM History
▪ Mars, Incorporated – Migration to non-family
management – Leadership had legacy
commitment to risk management – ERM was viewed as an evolution
▪ COSO versus bespoke approach – COSO – Committee of Sponsoring
Organizations structure – Bespoke approach won
▪ Phase 1 – Failed due to being impractical and
overly complex
▪ Phase 2 – Simpler and targeted
Planning Workshops
▪ Alignment between Senior goals and ERM
▪ Started with simple template – Operating plan initiative sheet
▪ Objective ▪ Score ▪ Risk column ▪ Risk treatment column
▪ Management team met to define and rank – Risks – Risk treatments
▪ Changed label from “mitigations”
Global Rollout
▪ Used lessons learned from pilot
▪ Workshops helped to identify – Gaps in risk management readiness – High-risk initiatives – Ongoing activities with unexpected high risk
Reporting
▪ Color-coding adds – Urgency – Clarity
▪ Score represents – Confidence of meeting goals
Reporting, cont’d.
Reporting, cont’d.
Reporting, cont’d.
Operating Workshops
▪ Several ongoing changes
▪ Technology – Word -> Excel – Excel -> purpose-built software
▪ ERM supports aggregation – More complete view of organizational impact of risk
▪ Continual template evolution – Added risk treatment owners and due dates
Summary
▪ Mars received an award for their ERM – Corporate Executive Boards’ “Force of Ideas Award” for ERM
▪ Key factors for ERM success – Alignment with Mars’ goals and objectives – Flexibility – Being Realistic
Chapter 3 ERM at Mars, Incorporated: ERM for Strategy and Operations
ITS 835
