Risk Management Management

The United Illuminating Company has transitioned towards a process-oriented management. The process view shows precisely the activities the business is involved in and its central processes. To show the worth UI places towards enterprise risk management (ERM) the company has listed “manage risk” as its one of the enabling processes (The United Illuminating Company, 2007). The audit committee in 2002 financed an effort to evaluate risk concerns in the company’s several subsidiaries, known as enterprise-wide risk assessment (ERA). The evaluation identified that risk location and management were unavailable in all operations. Additionally risks were not being addressed in line with the goals of the company (The United Illuminating Company, 2007).

The company identified a solution which to take ERM responsibilities and allocate them to Strategic Business Services (SBS). SBS risk involvement permitted the firm to incorporate ERM along with strategic planning, project management and process enhancement- fundamental SBS areas- along with leveraging project management along with process enhancement as risk management instruments.  These endeavors led to the introduction of an incorporated strategic planning along with risk management process. Higher-ranking leaders congregate on a monthly basis to evaluate this process, to make sure that risks are understood, precedence is established and resources are in place (The United Illuminating Company, 2007).  SBS improves the strategic planning along with risk management process every time to boost deliverables’ timelines, information depth, gauges of efficiency and incorporation. This is a an unending enhancement in action. Additionally, SBS acquires and uses the independent appraisals given by the company’s internal audit in addition to the contribution and response the audit committee in ensuring honesty and diligence of the efforts (The United Illuminating Company, 2007).  SBS provides two primary reports every year (in October and May) that serves as primary condition checkpoints. The reports indicate qualitative data regarding identified risks along with their linked strategies.

References

The United Illuminating Company. (2007). Risky Business: Employing Enterprise Risk Management-United Illuminating Case Study, 83-89.