Tag Archives: enterprise risk

Elm Consulting to Provide EHS Risk Experts to AMX International

The Elm Consulting Group International, LLC and AMX International, Incorporated announce the formation of a cooperative relationship that will expand AMX’s Enterprise Risk Management services to include Environmental, Health, Safety and Sustainability.

According to Glen Boyls, President of AMX, “today’s publicly traded companies need innovative and holistic enterprise risk management solutions.  Elm compliments our risk management approach and provides the expertise required to ensure our clients are compliant with state, federal and international laws, and develop sustainable environmental, health and safety programs.”

“Elm is excited about being part of the AMX team,” said Lawrence Heim, Director in Elm’s Atlanta office.  “We both emphasize high quality client service and leading edge thinking.  Unlike times gone by, today’s business environment requires thorough integration and consideration of Environmental, Health, Safety and Sustainability into strategic and risk management planning.  The AMX/Elm team will excel at filling this need.”

About AMX:  AMX is a management consulting firm specializing in the implementation of transformational enterprise risk management and business continuity solutions for publicly traded corporations.  AMX consultants are proven leaders with the skills, knowledge and experience required to work with global cross-functional teams and to collaborate with people at all levels of the corporation.  AMX works in close partnership with directors, senior executives, managers and staff members to ensure an understanding the major risks and the reasons behind the risk management processes.  AMX was founded in 1991, and its consultants have served Global 25 to Fortune 1000 corporations across 15 industries.  For more information on AMX and the 2010 ERM Program, please visit our website.

New Report by The Conference Board: Gaps Exist Between Risk Management and Financial Measures

A report released today by The Conference Board concluded that few companies link Enterprise Risk Management (ERM) data into corporate performance management/metrics.

Enterprise risk management and performance management are two complimentary processes essential for the management of an organization. Both disciplines are designed to support organizations’ efforts in making decisions and meeting their goals–ERM through the identification and management of those risks that could affect business objectives, and performance management through the identification and measurement of the drivers needed to achieve results.

Risk-adjusted performance metrics offer managers tools that strike the appropriate balance between meeting performance goals and achieving appropriate returns for the risks being taken. The application of risk-based performance management may also lead to incentives that are more aligned with an organization’s long-term success.

These points raise interesting implications for those companies implementing sustainability and other EHS management programs.

–       How are EHS elements reflected in the ERM program?

–       Are existing EHS/sustainability performance metrics aligned with internal risk management standards and benchmarks?

–       Do financial measures of EHS/sustainability performance incorporate risk-adjusted factors that are obtained from the ERM framework?

Elm’s Return on Investment of Loss Avoidance (ROIa)© is an innovative valuation methodology that links EHS/sustainability risk data and financial performance.  ROIa© demonstrates financial return of EHS risk reduction investments in terms of both reasonable anticipated loss and the cost of generating new profits needed to recover associated profits.  ROIa© utilizes existing financial data along with frequency and severity data obtained through EHS risk assessment processes, then benchmarks that exposure information against varying sets of cost data that are most relevant to client organizations.  This produces ROI information for EHS management costs in the context of internally-credible values, risk management and revenue/profit generation benchmarks.  Click for a graphic showing general guidance on interpreting ROIa©

About The Conference Board:   For over 90 years, The Conference Board has created and disseminated knowledge about management and the marketplace to help businesses strengthen their performance and better serve society. The Conference Board operates as a global independent membership organization working in the public interest. It publishes information and analysis, makes economics-based forecasts and assesses trends, and facilitates learning by creating dynamic communities of interest that bring together senior executives from around the world.