Resource-Reallocation Diagnostic

Many risk-management activities at the enterprise level are influenced by various types of pressure. Some are external, such as compliance or regulatory changes, for example. Sometimes, unfortunate events in one’s own company or in the industry prompt internal soul searching regarding whether existing risk-management approaches are adequate. In more and more cases, however, CEOs and business leaders take a more proactive stance, as their goal is to further develop risk-management capabilities (proactively based on their strategic and economic priorities and growing aspiration levels) into a true competitive advantage—ultimately improving business decisions and increasing the value of the company in a risk-conscious way.

We have worked with clients in many different industries, including finance, energy and basic materials, automotive, pharmaceuticals, infrastructure, logistics, and travel. We have also assisted public entities, as many of them are increasingly aiming to improve their enterprise-risk-management (ERM) capabilities.

Our recent work includes supporting clients in targeted initiatives for upgrading ERM capabilities. Economic crises motivated our clients to work on stress testing and rapid-recovery programs. Natural or operational disasters resulted in the creation of effective crisis-response projects. Far-reaching regulatory and supervisory actions triggered work to articulate strategic risk appetite and strengthen project-control frameworks.

Selected Tools and Resources

To assess, benchmark, and improve a client’s ERM capabilities, we use a combination of proprietary data and unique tools, including the following:

Enterprise Diagnostic: A holistic assessment of the effectiveness of enterprise-wide risk management using our proprietary ERM Diagnostic allows for fact-based diagnosis of current ERM practices across the organization, a targeted definition of an organization’s ERM-related objective, and prioritized deployment of specific tools and approaches (such as strategic-scenario planning, stress testing, and risk-appetite definition) in the areas of greatest need, thereby helping a client improve its ERM practices.

Project Organization Diagnostic: Enables holistic assessment of the efficiency, effectiveness, and structural soundness of a company’s risk organization. It also allows for comparisons with peers. Assesses an organization’s mind-sets as they relate to risk management, and identifies cultural strengths as well as opportunities for improvement.

Compliance Health Check: Helps clients test for compliance in their particular industry. A series of industry-specific tools for certain compliance areas (such as Business Partner Management or Gifts and Hospitality) are also available.

Cash Flow at Risk Models: Offers in advanced risk analytics and data modeling help companies—particularly those exposed to commodity and currency volatility and long-term uncertainty—understand their risk exposure and risk capacity, and how this exposure can be shaped by business decisions.

 

Related Practices

Managing strategy and stakeholders includes ensuring continuous alignment of the organization with the business strategy and value objectives, detailed analysis of stakeholder positions, vendor management, and proactive risk identification and mitigation.

How can we help you?

We help organizations build competitive advantage through the development of sustainable, world-class project management capabilities.