question archive Mini-Cases on ERM and RIsk Enterprise Risk Management Professor Michael Solomon Overview • Collection of four mini-cases • Leaves open ended questions • Presents real life situations • And needs for ERM • Mini-Cases • Bim Consultants Inc
Mini-Cases on ERM and RIsk Enterprise Risk Management Professor Michael Solomon Overview • Collection of four mini-cases • Leaves open ended questions • Presents real life situations • And needs for ERM • Mini-Cases • Bim Consultants Inc
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Mini-Cases on ERM and RIsk Enterprise Risk Management
Professor Michael Solomon
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 • Attract the best talent • Retain good people • Manage talent • 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 • Uncompetitive labor production • Increased departures of skilled technical staff • Loss of key business know-how
The Reluctant General Counsel
• Business Software Corporation (BSC) • Silicon Valley, 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 • Substantially more sophisticated than Akawini’s RM
• Launched project to transform Akawini RM to ERM
