The Enterprise Risk Management (ERM) function holds great untapped potential since most of its activities are still driven by compliance requirements. Moving beyond compliance and making Enterprise Risk Management a value accretive function is a great challenge, but a greater opportunity for modern organizations.
Verea Group works with the ERM function to move beyond compliance and enable management to take on the right risks and handle them efficiently, as well as to strengthen stakeholders’ expectations about management’s ability to successfully execute its strategy under a range of possible scenarios.
To support the ERM function in developing and implementing consistent risk assessment and management, Verea Group provides the following distinct services:
- Under Resilience-Adjusted Net Present Value, we help management generate a range of risk scenarios in addition to the base case plan. Then we help assess how a risk management project would reduce the potential losses under the risk scenarios. Using an innovative methodology based on Real Options Analysis, we help management decide whether the risk management project is value-accretive.
- Under Agility-Adjusted Net Present Value, we help management rigorously implement and quantify a SWOT (Strengths and Weaknesses Opportunities and Threats) analysis. We use the results of the SWOT analysis and our proprietary methodology to help management assess the value and risk profile of its business plan, including additional metrics such as Risk Leverage and Opportunity Leverage.
Verea Group works with corporate leaders to build risk management capabilities and a culture focused on transparency, preemption, and responsiveness.
Companies often provide implicit risk management benefits to their customers through pricing, financing, and optionality in contracts. Unfortunately, many of them fall short of fully articulating risk management as a key element of their value proposition, properly pricing it, and managing their integrated risk exposure.
Verea Group works with companies to identify all risk management services they provide and turn them into a competitive advantage.
Verea Group works with clients on specific risk management questions and projects, and on building strong and ongoing risk management capabilities.