As Cristina Tate, Director, Enterprise Risk Management, HP explains “The goal is quite simple; to have a ‘best-in-class’ Enterprise Risk Management (ERM) programme to enable the company to effectively and efficiently identify, assess and manage its most significant risks on an ongoing basis.”

The team has put in place an Enterprise Risk Management (ERM) system that clearly defines risk management roles and responsibilities, brings together senior management to discuss risk, assures visibility and constructive dialogue around risk at the executive management and board level. “Most importantly, the system facilitates and drives the appropriate risk response strategies,” says Tate.

The team facilitates a comprehensive risk assessment process with each business group and global function and then aggregates the results into an enterprise risk portfolio.

This risk assessment methodology includes the capability to quantitatively assess risks by measuring the distribution of potential impacts using subject matter experts, and probability analysis developed in partnership with HP Labs, the company’s central research arm.

“The quality of HP’s ERM programme has been strongly validated via formal and informal benchmarking, participation in key, recognised forums and consistent, positive external feedback.”

Risks are reported out on an established cadence to key stakeholders of the company. By having a fully operational ERM system in place, HP can proactively understand its risk profile holistically and take real-time appropriate actions in response to key risks.

Some of the key attributes and benefits of the solution are:

• A clearly established risk governance structure.

• Co-ordination among risk functions, increasing effectiveness and efficiency of risk management activities, reducing burden on business and providing for consistent reporting to the board.

• Increased awareness and understanding of risks the company is facing.

• Enhanced management of risk through constructive dialogue and proactive response leading to visible and measurable risk improvement.

Moreover, HP’s ERM programme is ‘best-in-class’, incorporating analytics capability and the highest level of board and executive management support. The programme has achieved integration with existing business processes, high-level visibility of key risks, and strong co-ordination and collaboration with other risk functions.

Tate concludes, “It is an elegant, practical solution for a large and complex organisation. HP has taken the theory of ERM and made it real. The quality of HP’s ERM programme has been strongly validated via formal and informal benchmarking, participation in key, recognised forums and consistent, positive external feedback.”