Enterprise Risk Management Services
Clients choose ICA’s Enterprise Risk Management Service because they want to build a more sophisticated and responsive internal framework for risk identification and risk management. By utilizing ICA’s ERM approach, custom designed for the unique organizational needs of each client, you can rest assured that your organization will be guided in the implementation improved structure, accountability, reporting, and communication of enterprise risks throughout your organization. Management will benefit from having a better understanding of the risks to facilitate more informed strategic and tactical management decisions.
The ICA Difference…
ICA is an organization of professional consultants with offices in New Jersey, New York, California and Florida, experienced in solving the risk management challenges of its clients and implementing creative, lasting and cost-effective Risk Management systems and solutions. ICA operates with complete impartiality and independence from insurance companies, brokerage firms, and any other party affiliated with the insurance industry. ICA welcomes our Clients’ legal and accounting teams to work with our consultants to provide professional insight to those parties, or ICA can provide trusted recommendations for those services as applicable.
Enterprise Risk Management (“ERM”) is a strategic business discipline that supports achievement of a company’s objectives by addressing the full spectrum of risk and managing the combined impact of those risks as an interrelated risk system.
ICA’s ERM Approach is wholistic evaluating a company’s risk portfolio in the context of all significant internal and external environments, systems, circumstances and stakeholders, recognizing that individual risks across the organization are interrelated and can create a combined (“cross-linked”) exposure. ICA works with stakeholders, at the senior and middle management level as well as the Board of Directors, to provide an organic, “grass-roots” process – identifying the “Risk Universe” from both the top-down and the bottom-up – to manage all risks, both quantitative and qualitative in nature. ERM further seeks to embed risk management as a component in all critical decisions throughout the organization thereby establishing a “Risk Culture” that converts systems into enduring ERM practice.
ICA’s ERM Practice is rooted in tailoring a traditionally complex paradigm and process – historically born of the banking & finance (COSO) and manufacturing industries (ISO) – and adapting it to a variety of industries wherein the fundamental principles of ERM apply. Especially, with respect to private equity funds and conglomerates wherein communication and consistency across a portfolio or subsidiaries adds significant value. ICA does not implement a “stock” or standardized ERM program, nor does ICA rely upon a pre-established software product to develop systems. Rather, using an established process and metrics, ICA evolves each ERM program to fit the needs individual clients and can then integrate such program and systems with a variety of software platforms.
ICA’s ERM Philosophy focuses upon risk identification, quantification, communication, and tracking using a customized and expandable system that is both well suited for an organization’s industry, management structure and – most importantly – corporate culture. For it is ICA’s belief that without establishing proper, organization-wide “Risk Culture” – lead by senior management – an ERM program cannot be successful.
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See Below for How It Works:
Due Diligence of all Client’s risk related documents including, insurance schedules, internal SOPs, business continuity plans, organization charts, etc.
Review and Assessment of any and all existing Risk Registries, tolerance and appetite statements, key performance indicators (KPI) and other developed ERM working documents and systems
Conduct Key Stakeholder interviews with the Executive Team (C-Suite and Board) and Middle Management (Director/VP) level Company staff
Establishment of an internal ERM “Risk Champion” and Committees, both Executive and Working, with assignment of Key Stakeholders from all department/operational functions
Conduct Risk Facilitation Sessions with ERM Executive and Working Committees including “whiteboard” exercises to establish the Risk Registry, Appetite and Tolerance statements, and KPIs
Implementation of a tailored ERM Survey to gather data and facilitate Risk Ranking and Correlation with Risk Tolerance Levels.
The ultimate goal of Phase I will be to establish and evolve the existing state of all ERM efforts as they relate to the overall plan and timeline moving through the ERM “Levels of Maturity” from “Ad Hoc” to “Repeatable”. During this process, ICA will identify and train internal Risk Champions to both integrate the ERM Culture and maintain such system in a Co-Sourced manner thereby establishing internal staff that will be able to maintain established ERM programs with the advice and oversight of ICA as it pertains to continued development.
Integration and ERM Continuation:
Establishment and Conducting of Monthly ERM Working Committee meetings and Quarterly ERM Executive Committee meetings including, review and management of the Risk Registry with continuous identification of new risks and modification of existing
Refinement of KPIs and development of Key Risk Indicators (KRI) and their integration into the ERM System
Establishment of Cross-Linked risks and Predictive modeling systems and implementation of ERM metrics and systems (i.e. Risk Survey) as well as production of quarterly ERM Dashboard reports identifying the “Top-10” Risks facing the Client including Risk Tolerances and Appetites
This process facilitates movement through “Repeatable” (Integrated) to “Progressive” (Predictive) and “Advanced” (Optimized) using a Co-Sourced Model to further refine the ERM process and metrics as well as fully integrate Risk Culture.