Chapters 26 through 29(Attached) presented four mini-case studies on ERM and risk. Each one presented a slightly different risk scenario. Starting with chapter 29, assume that you have been asked to a

ITS 835 Chapters 26, 27, 28, 29

Mini-Cases on ERM and RIsk Enterprise Risk Management

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

• Executive team workshop to explore HR risks

The Reluctant General Counsel

• Business Software Corporation (BSC)

• SiliconValley,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