Risk process development and training

The new chief executive of a major automotive component supplier wanted an overview of operational and business risks to better understand the key issues and avoid surprise deviations from expected results. A risk audit committee, helped by a Zurich consultant, was established to develop a strategy for rolling out a consistent risk analysis programme across divisions. The intention was to encourage the directors of subsidiary companies to adopt a common and efficient risk management analysis and reporting process, and to train in-house staff as workshop facilitators to continue the process in future years.

• Risk evaluation workshops were run in each division and led by Zurich facilitators. The results were presented to colleagues by the subsidiary directors at annual conferences. Their enthusiasm for the results and clear sponsorship by divisional heads encouraged others to buy in.
• A series of one week training courses followed, in different countries and languages. In each course, experienced Zurich tutors led trainee facilitators through two analyses on subsidiary company sites, thereby combining training with actual risk analyses. The company licensed the Zurich database software to manage the results.
• After 9 months, the results of over forty analysis workshops were collated by Zurich staff, and consolidated by further analysis in high level executive teams led by a Zurich consultant. The results were incorporated by the risk audit committee into a report for the CEO. These findings have been instrumental in the development of a strong risk culture with a more consistent appetite for risk.

The process has been refined and repeated in subsequent years, and the company has become self-sufficient as the in-house facilitators have gained confidence and experience. They facilitate each others’ subsidiaries across national boundaries to exchange know-how and ways to better manage common risk issues. An enduring risk management culture has been embedded in the company.