Cedeno, Koerner, Melo, Vining- 5

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Module5.3 Group Project – Swissgrid Deliverable 2 Daniela Cedeno, Greer Koerner, Marcel Melo, Thomas Vining Embry-Riddle Aeronautical University Worldwide November 20, 2022

Meyer's Risk Management Processes Meyer's risk management processes at Swissgrid are vital because they are designed to identify and assess risks systematically and then create and implement mitigation plans. Meyer implemented six risk management processes at Swissgrid. The risk management processes were. I. Establish and formalize the risk management network within the company by appointing risk officers within the business units (Kaplan & Mikes, 2018). They will be the ears, eyes and arms of Risk Management. This process aligned with the ERM process cycle outlined by Segal, where the first process is appointing risk offers for risk identification (Segal, 2011).  Strength: The process ensures proper risk identification, assessment, and reporting to Risk Management. Risk Officers attached to business units can collect accurate information to identify possible risks within the business.  Limitation: All risk officers have core responsibilities in their business units and will prioritize core responsibilities over risk management tasks. II. Raise risk culture awareness by introducing risk management goals and responsibilities (i.e., CEO-Level policy) to the supervisory board and company-wide communication on Enterprise Risk Management implementation (Kaplan & Mikes, 2018). According to Segal, creating awareness and communicating the ERM implementation to the entire company ensures easy identification of killer and newly emerging risks, hence easy management of risk (Segal, 2011).  Strength: The risk management goals and responsibilities are widely accepted by all staff. Communicating risk management goals and responsibilities to the supervisory board and the rest of the company staff promoted a sense of inclusion in the ERM.  Limitation: The fact that goals and responsibilities are widely acknowledged does not mean that all staff understand them. The introduction of risk management goals and responsibilities may bring more confusion to some staff. III. Rolled out business unit risk workshops and discussions. The workshops and discussions were organized by the respective risk officers and supported by the group risk function on new risk issues (Kaplan & Mikes, 2018).

 Strength: Risk officers, leaders, and subject matter experts can refine risks identification and improve the assessment because of sufficient inputs while Group Risk function enhances risk identification. Segal states this is one of the five keys to successful risk identification (Segal, 2011).  Limitation: This process is time-consuming because leaders are allowed to provide their views and feedback on the discussed topic, which can also lead to information overload. IV. Organized extraordinary risk workshops to identify and assess new and emerging risks (Kaplan & Mikes, 2018). According to Segal, the primary goal of organizing extraordinary risk workshops is finding common ground on the issue and deciding whether to present it to the board of directors (Segal, 2011).  Strength: Proactive risk identification and assessment that enable the executive team to be prepared for new challenges to the company  Limitation: The continuity of Swissgrid operations is at stack, and risk mitigations are based on assumptions made by the leaders and approved by the Executive board. V. Escalation of risk findings and recommendations to the Executive board for decision- making.  Strength: Escalating the risk findings and recommendations helps the Executive board make an informed decision and allocate sufficient resources for risk mitigation. According to Segal, integrating the ERM into decision- making is critical to establishing a successful ERM framework (Segal, 2011).  Limitation: The executive board will be involved in the company's operational issues, and it could be too granular for the board's attention. VI. Implemented an intelligent reporting risk control system – ASE (All-Seeing Eye) (Kaplan & Mikes, 2018).  Strength: Automating risk reporting, especially summary risk reports, promotes accountability among risk owners.  Limitation: ASE is a risk reporting platform only. The risk owner is responsible for inputting quality risk assessment and mitigations in the system.

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