Corporate Enterprise Risk Management

Companies face a wide range of risks in the normal course of business. But not all risks are equally important. Enterprise risk management (ERM) helps managers focus on the risks that have the biggest influence — both positive and negative — on their ability to achieve strategic goals and to add shareholder value.

Towers Perrin recognizes that there are multiple perspectives that need to be considered when establishing ERM goals and metrics. Our analytics embed actuarial and other risk management techniques in a corporate finance setting. We also work with our clients to create a risk-minded corporate culture that nurtures the most effective forms of enterprise risk management.

We enable our clients to implement ERM in four stages built around risk identification, quantification, solution development and execution. This “modular” approach can enhance and expand a company's existing risk and capital management practices with our suite of ERM services that include:

• • Captive Consulting Services
  • Cash Flow at Risk
  • Casualty Actuarial Services
  • Claim Cost Management
  • Consultative Insurance Placement
  • Directors and Officers Liability
  • Energy Transaction Support
  • Energy Valuation
  • Fair Value Issues
  • Gift Card Programs
  • Hedge Effectiveness
  • Implementing ERM
• • Loyalty Rewards Programs
  • Operational Risk
  • Retirement Risk Solutions
  • Risk Culture Assessment
  • Risk Diagnostics
  • Risk Financing and Transfer
  • Risk Governance
  • Risk Identification
  • Risk Optimization
  • Risk Policy & Processes
  • Terrorism Risk
  • Value Creation

From its base in the banking and insurance industries, ERM has gained traction across all major industry segments in the wake of Sarbanes-Oxley and other regulatory developments, rating agency pressures and shareholder demand for improved financial performance and earnings stability.

Taking a comprehensive view of risks provides an understanding of the accumulations of exposure and the correlations between the risk factors that can help minimize surprises and mitigate corporate liability. Looking across the risk silos can also help to better evaluate the risk/reward tradeoff and to help make decisions that create value for an organization.

Solutions: