Introducing a fresh approach to risk mapping

An international telecommunications equipment supplier needed to refresh its approach to risk identification and consolidation in order to retain value in the process and to strengthen the basis for understanding and managing the most important risks across the organisation.

Consultants from Zurich were brought in to develop the process around existing terminology. The aim - to enable more effective capture of both qualitative and quantitative information from the business units.

The challenge - to do this in a way which would provide a set of prioritised risks that would add value to the business units while establishing a means of standardising and consolidating data by key risk area.

Working with the corporate risk management team, Zurich devised a methodology to enable facilitated quantification at the business unit level which retained the broad structure that had already been established. The methodology involved interviews and workshops to identify risks and to apply expert knowledge to a stochastic modelling framework. As part of the process development, Zurich consultants successfully facilitated a pilot of the process.

A capability was established to consolidate information and to assess it in the context of the group’s existing risk categories. The customised modelling database developed provided the framework for the data gathering, consolidation quantification and storage.

Following successful completion of the work, a roll-out plan was developed for the entire group.