Enterprise Risk Management

  • 1.  Tangible ERM Benefits

    Posted 10-12-2009 07:48 PM
    This message has been cross posted to the following eGroups: Risk Professionals and Enterprise Risk Management .
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    I am looking for feedback or case studies regarding tangible benefits that have been realized after or in conjunction with implementing a formal ERM program.  We have a lot of input/discussions regarding the theoretical benefits of increased coordination, better visibility, meeting regulatory/external expectations, etc, etc, but I am struggling to gather real examples of measurable benefits.  Can anyone share examples of a real, tangible benefit they recognized (real risk actually avoided or capitalized upon for incremental benefit, measurable cost/revenue impacts, identification of a significant risk that was previously undetected, meaningful action plans, etc) from implementing an ERM program that would not have otherwise been realized?

    Thanks in advance for sharing.

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    Tara La Bree
    Manager, Risk and Compliance
    Quantum Corporation
    Colorado Springs CO
    United States
    tara.labree@quantum.com
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  • 2.  RE:Tangible ERM Benefits

    Posted 10-13-2009 11:39 AM

    We have been doing ERM for several years now and have seen benefits.  For example, we spotted the financial crisis early on and as a result were able to avoid furloughs and service cuts of the sort that other public agencies have suffered.

    Also, while investment banks such as Lehman Brothers and Bear Stearns have gotten all the attention for their difficulties during the financial crisis, note that there have been other investment banks such as Lazard that were smart enough to avoid the big problems.  They don't get the attention because "nothing happened" to them, but somebody had their eye on risk at those firms.

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    Randall Kleinman
    Risk Manager
    Orange County Sanitation District
    Fountain Valley CA
    United States
    rkleinman@ocsd.com
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