Enterprise risk management : a common framework for the entire organization

233 Pages·2016·4.311 MB·English

by  Green, Philip E. J

Enterprise Risk Management
Enterprise Risk Management
A Common Framework
for the Entire Organization
Philip E. J. Green
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Dedication
To my parents, Les and Marion Green
Author Biographies
Chapter 1: Philip E. J. Green
Philip Green is CEO of First Resource Management Group, Inc., which manages forests in
Canada and provides forestry-related remote sensing data. Before this, he was president of
Greenbridge Management, Inc., during which time he provided risk management, process
management, continuous improvement, and statistical consulting services to industries in
many sectors across North and South America, Europe, and Asia. He is coauthor of misLeading
Indicators: How to Reliably Measure Your Business (with Professor George Gabor of Dalhousie
University), published by Praeger. He has an M.Sc. in statistics from McMaster University.
Chapter 2: John Roberts, M.Eng., P.Eng.,
and Dr. Frank Frantisak
John Roberts is a professional engineer who has worked in the natural resource industries
at their interface with their environment and society for more than thirty years. He was vice
president of environment for Noranda Forest, Inc., and its successor company Nexfor. He sub-
sequently became vice president of environment for Aurora Energy, a junior uranium mining
company. Currently he is vice president of environmental affairs at TMAC Resources, a min-
eral exploration and development company.
Frank Frantisak was one of the first corporate environmental executives in Canada. Now
retired, he was senior vice president of environment, health and hygiene at Noranda, Inc. He
produced Canada’s first standalone environmental report by a publicly traded corporation,
developed the world’s first air pollution index, for the province of Ontario, served on the tech-
nical committee to develop the ISO 14000 environmental standard, and was a corporate leader
in developing environmental management systems. He has a Ph.D. in chemical engineering
from Czech Technical University and is a member of the Order of Canada.
Chapter 3: Gaston Lafontaine, P.Eng.
Gaston Lafontaine is a graduate in mechanical engineering of Ecole Polytechnique, with a
career of twenty-eight years in petroleum refining. After five years in the various functions of
technical engineering, he became manager of maintenance and production departments and
eventually became general manager of the Montreal–East Shell Refinery for five years. Now
xiii
xiv Author Biographies
retired, he was coordinator of safety and health for all Shell installations in Canada. After his
career with Shell, he worked for some fifteen years as a consultant in the field of risk manage-
ment in various sectors of the industries in Canada, the United States, and Africa and taught
engineering at Sherbrooke University.
Chapter 4: Mike Fontaine
Mike Fontaine has more than thirty years’ project experience from the perspective of an engi-
neering, procurement and construction, and project management firm, primarily in the metals
and mining sector. His experience covers the entire project life cycle, from conceptual stud-
ies through to project execution, including plant startup. Mike’s experience includes process
engineering, project management, project controls, quality management, and, for more than
twenty years, risk management. He is regional risk manager for central North America for
Hatch, an engineering and multidisciplinary professional services firm employing more than
11,000 people in more than sixty-five, with more than $35 billion in projects currently under
management.
Chapter 5: Steve Osselton and Emily Heuts
Steve Osselton is national practice leader for Marsh’s Risk Consulting Practice (MRC), Marsh
Canada’s risk advisory group. In this capacity, he leads a multidisciplinary team of risk con-
sultants specializing in a wide range of technical and industry specific disciplines in the com-
mercial, manufacturing, resource, and government sectors. Steve has been with Marsh Canada
Limited since 1985 and previously held risk control technical positions with AIG and FM
Global. He has a bachelor’s of applied science degree in civil engineering from the University
of Waterloo (1980), is a registered professional engineer for the Province of Ontario, and has a
Canadian risk management (CRM) designation.
Emily Heuts is assistant vice president of Marsh Risk Consulting for organizational risk and resil-
ience with Marsh Risk Consulting in Toronto, specializing in enterprise risk management (ERM).
Emily’s ERM experience spans various industry sectors, most notably within the Canadian real
estate, mining, and public entity sectors. Emily has helped numerous large Canadian private and
public companies develop formalized risk management frameworks (including risk assessment,
prioritization, reporting, and senior management training). Emily holds an MBA from Wilfrid
Laurier University and an HBA from the University of Western Ontario.
Chapter 6: Nick Wildgoose, B.A. (Hons), FCA, FCIPS
Nick Wildgoose is a qualified accountant and supply chain professional and has held a variety
of global financial, supply chain, and commercial positions in a number of industry sectors,
Author Biographies xv
working for companies such as PWC, BOC Group, the Virgin Group, and, currently, Zurich
Insurance Group. He served on the board of the Chartered Institute of Purchasing and Supply,
the largest professional body in the world, having around 70,000 members. He has also served
as a specialist advisor to the World Economic Forum on the topic of systemic supply chain risk
and is chairman of the Supply Chain Risk Leadership Council. He is currently leading the roll-
out of innovative and award winning supply chain risk products for Zurich Insurance Group in
London, which has given him the opportunity to interact with a large number of global compa-
nies and understand how they are addressing the real issues they are facing in terms of supply
chain risk.
Chapter 7: Kevvie Fowler
Kevvie Fowler is a Partner in KPMG’s Risk Consulting Practice and has over 19 years of secu-
rity and forensics experience. Kevvie assists clients solve a variety of cyber security challenges
ranging from defining key organizational assets to developing security assessment and gover-
nance strategies to protect them, and leads a team of cyber forensic investigators who assist
clients in preparing for, responding to and recovering from cyber attacks. He is author of Data
Breach Response and Investigations and SQL Server Forensic Analysis; he is a contributing
author to several security and forensics books; is a frequent speaker at industry conferences
and is a media resource for a number of industry publications. Kevvie also sits on the SANS
Advisory Board where he guides the direction of emerging security and forensic research.
Chapter 8: Jonathan Copulsky and Chuck Saia
Jonathan Copulsky is a senior principal with Deloitte Consulting LLP, where he works with the
world’s best-known brands on their most challenging sales and marketing issues. In addition
to his client work, Jonathan serves as chief content officer of Deloitte LLP and Chief Marketing
Officer of Deloitte Consulting. His critically acclaimed book Brand Resilience: Managing
Risk and Recovery in a High-Speed World was published by Palgrave Macmillan in May 2011.
Jonathan holds a B.A. from Haverford College and an MBA from Stanford University.
Chuck Saia is the chief risk, reputation, and crisis officer of Deloitte LLP, responsible for over-
seeing firmwide reputation and risk governance practices and driving the firm’s strategic
risk management program. Chuck has more than twenty years’ experience advising clients
on corporate governance, regulatory issues, risk management, and internal controls. He cur-
rently serves as the advisory partner for BMO Harris and Credit Suisse and has previously been
the lead client service partner and lead advisory partner for multiple multinational banking and
financial services clients. He is a certified public accountant, has an MBA with a focus on internal
controls, and has written numerous articles and white papers on internal control subject areas.
xvi Author Biographies
Chapter 9: Mitch Albinski
Mitch Albinski is principal of Blackhall River Security Associates in Old Lyne, Connecticut. He
delivers services that enable clients to build operationally focused security programs grounded
by industry standards and based on assessment of risk. Mitch has an engineering background.
He has led security program integration teams during multiple corporate mergers and acquisi-
tions and is an advisor to key executive management on subjects related to security risk and
crisis management, activist and terrorist activities, and other threats affecting company busi-
ness and research operations.
Chapter 10: Steven Miller, Ph.D., CPCU, ARM
Steven Miller is an assistant professor of finance at Saint Joseph’s University and is currently
serving as a Visiting Foreign Scholar at the Central University of Finance and Economics
(CUFE) in Beijing, China. Prior to joining academia, Steve worked at Marsh as a consultant.
Steve was based in Chicago, New York, and London and has extensive international experience,
managing consulting engagements around the globe. In 2009, he joined St. Joseph’s University
to help launch their new major in risk management and insurance, and he has published arti-
cles in a number of academic journals, including the Journal of Banking and Finance, Journal
of Risk and Insurance, Journal of Insurance Issues, and Journal of Insurance Regulation.
Chapter 11: Sibt-ul-Hasnain Kazmi, M.A., FRM
Sibt-ul-Hasnain Kazmi works for Agriculture and Agri-Food Canada as a Program officer.
Before this, he worked as a data analyst at the Canadian Imperial Bank of Commerce in Toronto.
Prior to this, he wrote research reports for a private equity firm. He was a senior economist at the
International Monetary Fund and a risk analyst in the Treasury of the Central Bank of Pakistan.
He has two master’s degrees in economics (social statistics) from McGill University, Montreal, and
York University, Toronto. He is a certified financial risk manager.
Chapter 12: Greg Niehaus
Greg Niehaus is a professor of finance and insurance at the University of South Carolina,
where he served as finance department chair from 2001 to 2004 and as senior associate dean
for research and academics from 2007 to 2011. He teaches and conducts research on risk
management, insurance economics, and corporate finance. He is the coauthor, with Scott
Harrington of the Wharton School, of the textbook Risk Management and Insurance, 2nd ed.,
published by Irwin/McGraw-Hill. He has published articles in a number of academic jour-
nals, including the Journal of Financial Economics, Journal of Finance, Journal of Business,
Accounting Review, Journal of Banking and Finance, Journal of Financial Intermediation, and
Journal of Risk and Insurance.
Author Biographies xvii
Chapter 13: O liver Davidson, Patricia Mackenzie,
Mike Wilkinson, and Ron Burke
Oliver Davidson is a Senior Consultant at Towers Watson, with a background in organizational
psychology and works with clients to help them improve performance through measuring,
understanding and changing employee attitudes and organizational culture. Over the years
he has acted as a consultant to leading businesses globally across a wide range of sectors. In
particular, he has worked with many organizations specifically on aspects of their risk culture.
Oliver has a BSc and PhD from the University of Durham and an MSc from the Institute of
Work Psychology at Sheffield University.
Patricia Mackenzie is a Senior Consultant at Towers Watson with over 15 years’ experience
as a management consultant, leading major performance improvement and implementa-
tion of ERM frameworks projects. Patricia leads the Internal Model Validation initiative for the
Europe, Middle East, and Africa region. She has supported insurance companies in Europe
and Mexico in implementing risk management frameworks, with particular emphasis in tailor-
ing regulatory changes to the companies’ business models and corporate governance. Patricia
is a frequent conference speaker and contributing author to a number of risk related publica-
tions. She has a Business and Accounting Degrees from the Universidad del Pacifico and a spe-
cialization in Corporate Finance from the London Business School.
Mike Wilkinson is a Director in Towers Watson’s Risk and Financial Services practice and leads
Risk and Solvency II for the Europe, Middle East, and Africa region. He has over 25 years’ expe-
rience of supporting strategic, regulatory, organizational and operational developments in the
insurance and financial services sectors. He has worked extensively with insurers, reinsurers and
regulatory bodies in Europe, Middle East, Asia and the Americas to plan, implement and embed
ERM and regulatory driven change. Mike’s principle focus is on implementing and integrating
risk management and models in decision-making, business operations, governance and culture.
Ron Burke is a Director at Towers Watson and leads the firm’s Sales Effectiveness & Rewards
practice for the Europe, Middle East, and Africa region. Much of his work involves the design of
incentive programmes – and the consideration of the various risks related to these plans – for a
wide variety of customer facing sales and service roles spanning many different industries. He
has over 20 years of consulting experience, is a frequent conference speaker and is also a con-
tributing author to The Sales Compensation Handbook (2nd Edition). He earned a Master of
International Affairs (M.I.A.) degree with a concentration in international banking and finance
from Columbia University, and also holds a B.A. degree in development studies with a concen-
tration in economic and political development from the University of California at Berkeley.
Chapter 14: Peter Whyntie
Peter Whyntie is an independent governance, risk management and compliance consultant, with
thirty years’ experience in management, consulting, and regulatory roles. He spent his career with
xviii Author Biographies
a number of leading Australian financial services companies, including ANZ Funds Management,
Prudential, Colonial, and Zurich; he was subsequently the national partner for compliance at
KPMG. He is a member of the Governance Institute of Australia’s Subject Advisory Committee for
Advanced Risk Management. He is a regular presenter on compliance and risk management at
industry seminars and professional association forums in both Australia and Asia.
Chapter 15: Elizabeth Stephens
Dr. Elizabeth Stephens is an investment and country risk advisor, political columnist, and
university lecturer. For eight years she was head of credit and political risk advisory at JLT
Specialty, where she worked with some of the world’s largest commodity traders, energy com-
panies, and financial institutions. While at JLT, she designed and built the World Risk Review,
a country risk ratings tool that provides risk ratings and analysis for 198 territories. Elizabeth
received a Ph.D. in international relations from the London School of Economics and Political
Science and is a guest lecturer at the University of Birmingham. She is a regular conference
speaker and is regularly quoted in the media, including in the Financial Times and the Times,
and has recently appeared on Sky News, the BBC, and CNBC.
Chapter 16: Michael E. Raynor
Michael E. Raynor is a director at Deloitte Services LP; he is an advisor to senior executives
in the world’s leading corporations across a wide range of industries. Raynor has authored or
co-authored four books, most recently The Three Rules: How Exceptional Companies Think
(Portfolio), with Mumtaz Ahmed, which was named the Best Business Book of 2013 by the
Toronto Globe & Mail.
He was coauthor, with Professor Clayton M. Christensen, of the New York Times bestseller
The Innovator’s Solution, and author of The Innovator’s Manifesto, a Canadian #1 bestseller.
He was sole author of The Strategy Paradox, which was named by Strategy + Business as
one of its top five picks in strategy, with BusinessWeek naming it one of that year’s ten best
business books. Michael has a doctorate from the Harvard Business School, a master’s degree
in business administration from the Ivey School of Business at the University of Western
Ontario in London, Canada, and an undergraduate degree in philosophy from Harvard
University.