ERM Annual Review 2008 - (Page 27) Risk Assessment Extends its Reach Traditionally, ERM has applied risk assessment techniques to industrial safety, mainly in the oil & gas and transport sectors. More recently, we have widened the application of risk assessments to include environmental, social, reputational security and health issues. As part of this development, ERM has devised an innovative technique, the Tool for Opportunities and Risks from Climate Change (TORCH) which helps clients to forecast the effects of climate change on their business. TORCH quantifies the financial implications of climate change on a company’s assets, taking into account physical impacts, regulatory implications and changing market conditions. Clients for this service come from sectors as diverse as mining, finance and agriculture. Many have used the findings from TORCH to demonstrate sound risk management and governance to their board and external stakeholders. We are also extending the scope of risk assessment by developing tools which harness methods used in information management systems. Last year we developed a web-based risk management tool for undertaking early phase risk assessments of new projects for StatoilHydro. This application can be used to assess environmental, health and safety, security, social, ethical and anti-corruption related risks and opportunities in a consistent way; from the time an exploration project is conceived to its commissioning and operation. It also enables key technical risks to be assessed in a structured and transparent manner across the organization, and visualized and effectively communicated to senior management. As part of this project, a similar tool for assessing existing facilities is also being developed. Greening our Buildings Potential cost savings and the imperative to both reduce GHG emissions and to improve employee productivity have focused attention on the eco-efficiency of new and existing building portfolios. Demand from organizations for both strategic and projectlevel initiatives to improve the sustainability of their properties during planning, construction and renovation has increased in the last 12 months. These initiatives range from linking building strategies with wider carbon management, procurement and corporate aspirations, to supporting projects which reduce energy demand and explore greener alternatives and approaches. Last year ERM reviewed renovation designs for the United Nations complex in New York. Particular attention was placed on evaluating improvements in energy efficiency and environmental performance and determining status against a Leadership in Energy & Environmental Design® (LEED) benchmark. Modine Identifying energy consumption sources, and efficiency and process improvement opportunities at a Korean facility for a US manufacturer. Carl Stay, Milwaukee WI, US Rick Wohaska, Singapore Youngjong Joo, Seoul, Korea Eurostar Providing independent assurance that Eurostar has appropriately reported its processes to deliver carbon neutral journeys on its ‘Tread Lightly’ webpages. Kim Wilson & Dominique Gangneux, London, UK Tesco Developing a system to capture and record life cycle footprint data on a range of products, and in turn communicate this information to consumers. Karen Fisher, Manchester, UK Simon Aumonier, Oxford, UK ERM Annual Review 2008 27
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