NU Online News Service, July 20, 1:18 p.m.EDT

Two corporate risk managers reported very different results withenterprise risk management progress in their companies during awebinar this week.

The webinar, “RIMS Benchmark Book / The Live Event,” waspresented by Advisen and included live commentary from industryleaders.

“The actual process of ERM is nonexistent at Global Crossing,”says Len Resto, director, risk management for Global Crossing.“That has been despite my trying to get it to grow in thatdirection, but it’s been a tough sell.”

He continues that while his immediate boss is sold on ERM, “thehigher up you go, there seems to be less inclination to do it.”

He adds that some of the resistance comes at the suggestion of aday or half-day workshop with ERM experts. Company management alsobelieves they have identified their risks.

Looking at the same risks year after year, Resto says, producesmany of the same risk factors. “So it’s been a tough sell and nowthat Global Crossing has been acquired by another company, the ERMeffort is dead for the moment, but we’re hoping the new companypicks it up.”

Rich Sarnie, vice president, risk management for the GreatAtlantic & Pacific Tea Company Inc., says he has better news,noting that within the past six months, his company “has totallyembraced ERM.”

Sarnie says he has been appointed to lead the ERM program andthat so far he has made a presentation to the company’s auditcommittee and board “who are already asking those questions:‘What’s your plan Rich, here at A&P?’”

He adds that ERM is “really not that complex,” explaining thathis goal is to keep it simple.

The way ERM was initiated, he says, was by having each businessleader in the company come to a meeting bringing a homeworkassignment to identify a risk that, if it happens, “will shut thedoor.”

About 30 risks were listed and then prioritized, he says, todetermine which risks the group would work on first.

The list was narrowed to 10, he says, and the same riskmanagement strategy will be applied to them as “on any risk,whether it’s insurable or not. Can you avoid it, can you preventit, can you mitigate it or can you transfer it?”

Carol Fox, director of strategic and enterprise risk practicesfor RIMS notes that risk managers need to point out where they havesaved the company money by preventing risk.

Resto agrees, pointing to his own company, where carriers hadrecommended improvements to a particularly vulnerable roof.

“So hurricane season comes and nothing happens and managementthinks operations is doing a great job keeping the roof in repair,”he says. “So you have to remind them that this was in response to arecommendation and that this is what ERM is all about.”