Ask an Expert
Tel: +1-281-673-2800
Find an Office
Email Us
Project Profile

Implementing an Effective Enterprise Risk Management Strategy

Read how our strategic enterprise risk management (ERM) framework is helping an organization gain critical insights into key risk drivers that could affect its operational and mission success.

Project Objectives

Enterprise Risk Management

Project Overview

During an internal evaluation to determine gaps in managing organizational risks, a client identified that it did not have a structured process for performing strategic enterprise risk management (ERM) across its assets and operations. The organization also recognized that it did not have the required expertise and experience in house to develop and implement such a process. While personnel were aware of numerous potential drivers of risk to the organization that could circumvent operational and mission success, a systematic process was needed to help collate, assess and manage these risk drivers.

ABS Group was selected to help the organization develop a three-year pilot program to demonstrate implementation of an effective ERM strategy. Now in its third year, the program has progressed from the initial establishment of ERM through a series of small pilot projects demonstrating implementation to maturing the program to include guiding software implementation with additional targeted projects that provide immediate benefits toward achieving the organization's missions.

Client Needs
  • Develop an ERM maturity map and plan with actions to address key risk drivers
  • Build expertise within the organization and engage management
  • Identify top risk drivers and understand how to collate these data
  • Implement ERM support software
  • Track enterprise risk reduction


Our Solution

ABS Group has a committed, strong and experienced team that includes several senior risk analysts who have each performed and taught ERM implementation for almost 10 years on average. To help the organization develop and implement an effective ERM strategy, we examined the organization's internal ERM processes and applications to develop guidance tailored to the organization's specific needs. The development of a roadmap identifying key risk drivers and action plans will support the long-term implementation of ERM at the organization.

Our ERM solution aligns with the organization's goals of:

  • Guiding personnel in applying ERM to improve enterprise management
  • Maturing ERM at the organization following a structured ERM map and plan
  • Demonstrating the identification of key risk drivers, development of actions and achievement of risk reduction
  • Improving ERM application efficiency

Delivery of Maturity Model

ABS Group developed a maturity model for the organization to describe the vision of the ERM program and create a roadmap for the integration of risk management into the organization. We reviewed more than 25 sources of best practices and identified 29 best practices organized into five categories and sub-factors to inform the maturity model. The team then worked with the organization's leadership to develop a model that identified different levels of maturity for each sub-factor.

Publish ERM Charter

The project team worked with leadership to define a vision for ERM at the organizational level and identify anticipated benefits of such a program. The charter document summarizes these points and describes the phases of ERM maturity and how ERM is expected to be integrated into the organization.

Program Risk Assessment Enhancements

We also worked to enhance the existing Internal Controls assessment methodology to improve data collection and better inform the ERM system.

Develop an ERM Implementation Framework

The team developed an ERM Handbook and Manual Chapter, which established the elements that provide the foundations and organizational arrangements for the management of enterprise risk, including relationships among stakeholder teams, risk management processes, measurement of risk management performance, communication of risk information and use of risk data.

Implement ERM System Prototype

The project team, with support from select field personnel, initiated an ERM pilot from October 2014 through February 2015, applying the ERM framework and exercising key steps in the ERM cycle. We hosted multiple working sessions with the organization's personnel to identify, analyze and prioritize its strategic risks. During the pilot effort, five top risks were selected for further analysis to identify key risk drivers, existing controls and proposed actions. In addition, the team conducted detailed analyses of cross-cutting issues that affect more than one organizational function.

Guide ERM Software Implementation

The project team supported the organization in the selection and implementation of ERM software that will facilitate more efficient ERM activities going forward.

Support Ongoing ERM Applications

ERM has helped the organization to manage risk exposures and to define many follow-on projects (risk treatments) that have already closed gaps identified by the ERM team. In addition, ERM is now fully integrated with the organization's strategic plan for the next three years. This will help to prioritize the selection of focused ERM assessments that will provide greater risk understanding and the development of additional efficient and effective risk treatments.

Utilizing the ERM roadmap and framework developed by ABS Group to guide this effort, the project team will continue to provide ERM implementation support to the organization by configuring ERM software, prioritizing and selecting risk treatments for implementation to mitigate top risks, and collaborating with ERM stakeholders to implement ERM enterprise-wide.

Value Delivered

 Enterprise Risk Management

The maturing of ERM at the organization has already produced a structured approach with a detailed playbook for providing an enterprise level understanding of the risks to achieving its various missions, the key actions needed for evaluated areas and a platform for systematically addressing other drivers of enterprise risk. The organization is now well positioned to gain an even greater value in enterprise risk understanding, action development and risk reduction as it expands the application of ERM and pursues the integration of ERM into supporting all elements of enterprise management across the enterprise to achieve long-term, sustained mission success.

ABS Group has received the highest possible ratings from the contract manager.

Back to top