Executive eBriefing: Strategic Enterprise Risk Management
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Executive eBriefings

Strategic Enterprise Risk Management: Avoiding the Wrong Risks

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Until recently, few senior executives have recognized the importance of protecting shareholder value through world-class, strategic enterprise risk management (ERM). Instead, most corporate leaders have focused solely on creating and delivering shareholder value through strategic choices, effective execution, and better business processes.

But the debacles in the energy, telecommunications, and high-tech industries have highlighted the broad range and magnitude of risks to shareholder value that face most corporations – including market, financial, regulatory, and operational risks. Corporations with perceived “risky” business operations – such as commodity trading – have appointed Chief Risk Officers (CROs) to monitor and/or manage these risks. Others have turned to one-time audits, insurance brokers, or seductive software to “fix” the problem. But these efforts often represent a tactical response to current concerns while the strategic risks to shareholder value remain unaddressed. The need for a strategic approach to ERM has never been clearer.

In this Executive e-Briefing, the speakers will discuss the three critical elements for creating a Strategic Enterprise Risk Management capability:

  • Creating a direct line of sight from risk management to shareholder value
  • Implementing a process to protect shareholder value
  • Building the organizational capability to ensure strategic risk management
They will also discuss practical approaches to getting started on building a strategic enterprise risk management system.

Drawing on SDG’s experience in identifying and implementing best practice in enterprise risk management, they will present practical approaches to identifying the major risks to shareholder value, discuss the range of solutions to excessive risk exposure and the role of boards, corporate executives, chief risk officers and line executives in protecting that value.

In today’s highly uncertain business environment, all senior executives should ensure that they apply world-class approaches to protecting the value created by their businesses.

Speakers

David Barker, an affiliate with SDG, is a management consultant with 27 years of experience in strategic, organizational, and commercial planning.

Bob Hewes is an SDG senior engagement manager specializing in strategic formulation, strategy processes, and decision analysis.

Mark Matousek, who heads SDG's power and gas utilities sector, is experienced in corporate strategy development, R&D planning, marketing analysis, and operations planning.

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Date
November 20, 2002


Speakers

David Barker
Bob Hewes
Mark Matousek


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