Chapters 26,27,28,39: Mini-Cases in ERM
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ITS835Chapters26.docxITS 835 Chapters 26, 27, 28, 29
Mini-Cases on ERM and RIsk Enterprise Risk Management
Overview
• Collection of four mini-cases
• Leaves open ended questions
• Presents real life situations
• And needs for ERM
• Mini-Cases • Bim Consultants Inc.
• Nerds Galore • The Reluctant General Counsel • Transforming Risk Management at Akawini Copper
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
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)
Nerds Galore, cont’d.
• Strategy from new HR VP
· Attractthebesttalent
· Retain good people
· Managetalent
· 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
· Uncompetitivelaborproduction
· Increased departures of skilled technical staff
· Loss of key business know-how
The Reluctant General Counsel
• Business Software Corporation (BSC)
• SiliconValley,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
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
