avantage Capita Presentation of a Case Study with RTL Group at an Enterprise Risk Management Conference Held In Barcelona
On 27 February 2009, avantage Capita and RTL Group presented a case study of work under taken together at an AXIOM Events International event held in Barcelona. Participants from around Europe were drawn to the conference with the message "Business operations continue to evolve rapidly, driven by a variety of internal and external drivers. Companies are under increasing pressure to better know their risk, compliance, audit and incidents, and link them to action. Early warning of potential risks, hazards or loss is more crucial than ever. [This] event will allow you to make recommendations or decisions on retaining or transferring risks, make the necessary changes to minimise risk and capitalise the opportunities for growth."
The conference presentations included nine different case studies by representatives from the likes of Solvay, Royal Ahold, GE Oil & Gas, Tetra Laval and Levi Strauss, with a number of Panel Discussions providing participants an opportunity to ask questions specific to their company and circumstances.
Francois Masquellier of RTL Group (Treasurer, Corporate Finance and Enterprise Risk Management) and Andrew Nord (Director) of avantage Capita presented a case study outlining the results of the Enterprise Risk Management (ERM) diagnostic performed at RTL Group. Francois opened with an explanation of why RTL Group were seeking to further improve their ERM capability, which includes action as a response to an announcement by S&P that from Q3 2009 their credit rating process would include, along with other measures, an assessment of enterprise risk management processes.
Andrew provided insight and spoke of his experience with clients in their desire to link strategy with value creation through adopting improved ERM measures. He presented a value creation framework that enables the Board of Directors and C-Level management to best communicate the link between their chosen strategic objectives and risk management. He also addressed the topical issue of how an enterprise can articulate and communicate its risk appetite, providing an example of a risk appetite statement. He then presented an overview of how these concepts were incorporated in the avantage Integrated Risk and Performance Management (IRPM) diagnostic tool which was used to conduct the ERM review at RTL Group. His concluding remarks highlighted the need to differentiate between measures that focus on protecting value in current operations (determined with reference to risk adjusted measures applied in capital budgeting techniques) and consideration of risks related to inorganic (or progressive) options, such as mergers and acquisitions.
Francois spoke about the outcomes of the diagnostic review and of the near term steps RTL Group would take in adopting the gap closing measures identified as part of the review. He confirmed RTL Group's commitment to continually develop their risk management in line with internal and external stakeholders needs.
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