Brads Point of View

Brad's job is to oversee the enterprise risk management process within his company. "All corporations have to manage risk," Brad explains. "In our company, with our complex exposures, it's much more complicated than simply calling an insurance agent. My job is to identify risks, quantify our exposure, and recommend risk reduction and risk management strategies.

"The project I'm working on now is looking at factory building site alternatives from a risk perspective. I've made my decision; now I need to write a report explaining why I think we should build our new factory in Georgia, not in Florida or Illinois. I'm scheduled to present my results and explain my recommendation to the executive committee. This decision is a very big deal. It will affect the course of the company for the next generation.

"For me personally, it's a lot of pressure and an important opportunity. I feel very well prepared. I know what I want to say. Now all I have to do is write it."

Brad explained that other department vice presidents are also scheduled to report from their various perspectives: manufacturing, employee relations, accounting, transportation, and the like. Brad explains, "Although they'll be reporting their opinions, the CEO has made it clear that the committee is eager to hear my views because enterprise risk management transcends strict departmental breakdowns. It is my job to oversee risk in every area, whether it's credit, weather, labor unrest, or interruptions in distribution."

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