Case Study II Enterprise Risk Management

This chapter describes an ERM case study that includes the Governance process for ensuring the transparency of consequences and the way senior executives direct and control their organization. There are different interests and expectations at every level, such as the Audit Committee of the Supervisory Board, the Board itself, the Executive Board, the Corporate Risk Committee, the divisional lines, the business-unit lines, the country lines and, finally, middle- and lower management. Nevertheless, the Board of Directors provides a functioning ERM system that will not overlook any major issues that could harm the business. The way that corporate finance, risk management, and external audit functions—including governance owners such as IT, HR, legal-&-compliance, and the supply chain—cooperate with each other is presented, as is an explanation of how emergent risks are identified at corporate level. Furthermore, the decision-making processes on individual project portfolios, including business risk, legal-&-compliance, commercial, and various technical areas are discussed.