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Enterprise Risk Management

Due to the growing challenges and demands that companies face, a traditional risk management approach is no longer enough. Organizations need to take a more strategic and holistic management of risk, not simply to avoid landmines, but to enable the exploration of opportunities.

Organizations that fail to assess and plan for the potential risks may open themselves up to missed opportunities; disallowances and fines; increased regulatory enforcement and tarnished reputations. Organizations that respond appropriately to the challenges will not only be more agile in managing the associated risks, but also find opportunities for growth. 

BlumShapiro's ERM Process

At BlumShapiro, our ERM team utilizes a four-step methodology to help clients create their own ERM process. We work with our clients to help address the unacceptable risks and missed opportunities that can significantly impact their success. We look at each client’s unique needs and develop a deeper understanding of their business, systems, external environment and organizational culture in order to build an ongoing ERM business that adds value for our clients.

Within the four-stage process, distinct elements of our methodology include:

Stage 1: Risk Identification

BlumShapiro’s risk identification methodology is distinctive in that we work with the client to:

  • Focus on liability risks and asset opportunities e.g., “what could make your company better?”, rather than the narrower focus of “what keeps you awake at night?”
  • Provide the organization with a risk register pre-populated with level risks appropriate for their company type, replacing the laborious survey process
  • Ensure the list focuses on organizational-level risks, not co-mingled with operating-unit risks
  • Customize the list of risks, removing any that do not relate to their strategic objectives and adding any that do

In the end, our process efficiently develops a risk register that targets the institutional strategic risks senior management needs to focus on and periodically apprise the board.

Stage 2: Risk Assessment

Our risk assessment process uses computer-polling technology to conduct the assessment of risk likelihood, impact and velocity. Benefits of the technology include:

  • Expedites the risk ranking process
  • Enables immediate ad-hoc committee assessment requests
  • Enables immediate assessment of the committee’s consensus level

Stage 3: Management and Treatment

During this stage of the process, we work with the client to accomplish the following:

  • Explore the company’s appetite for risk
  • Determine the treatment options
  • Develop the alignment strategies
  • Explore opportunities, not simply avoid landmines

Stage 4: Monitoring and Communication

This stage is also customized based on each client’s needs, but may include the following:

  • Develop measurement values to monitor the risk alignment plan’s progress and success
  • Identify opportunities for recurring discussions of risk, opportunities and risk appetite
  • Create a company ERM awareness program that sustains a commitment to informed and intelligent risk taking

We will tailor our methodology to address each client’s individual needs and culture. This positions us to deliver superior services that clients like you expect from a trusted business advisor.


Contact our Enterprise Risk Management Team for more information:

 

 

Advisors | Auditors | Consultants | CPAs - Blum Shapiro is one of the premier public accounting firms in the northeast and a Top 100 CPA Firm in the U.S. Our professionals serve businesses, individuals and organizations in Boston (MA), Hartford (CT), Cranston (RI), Shelton (CT) ,Quincy (MA) and Newton (MA) with audit, tax and business consulting services. Our firm has developed practice areas in automotive, construction, education, government, healthcare, hospitality, manufacturing, nonprofit organizations and professional service firms. New Haven CT, Fairfield CT, Norwalk CT, Waterbury CT.