Protecting a global brand with ERM Lite
5
Significant changes in production quality control
4
Communication action plans to restore brand confidence
At a glance
Client
Globally recognized household brand
Industry
Manufacturing
Our role
Develop ongoing risk program
Our solution
Enhanced brand consistency
Creating a deep understanding of risks
Scenario
A globally recognized household goods manufacturer needed a systematic approach to its risks.
Approach
Grant Thornton helped the company gain an understanding of its key risks, which were highlighted by inconsistencies in global production.
Result
Our ERM Lite services recommended five significant changes in quality control that led to greater consistency in production.
Scenario
During a period of inconsistent global production, a household goods manufacturer whose product has brand loyalty that’s passed down through generations identified a need to systematically identify, prioritize and address current and emerging risks.
The client sought to protect the long-term health of its well-known brand. The company chose Grant Thornton’s ERM Lite service to rapidly develop a comprehensive and pragmatic risk management structure at an affordable price.
Approach
Grant Thornton specialists from various disciplines worked with key personnel throughout the manufacturer’s organization. We discovered a need to assess risk both at the enterprise level and throughout 12 key risk domains separated by geography and other factors.
Developing a unified framework and definitions for the likelihood and severity of various risks as well as scoring for inherent risk, risk triggers, velocity, risk mitigation and residual risk, Grant Thornton helped the company identify and prioritize 10 to 20 key risks for each domain.
With a new shared perspective, the company was able to understand and evaluate disparate risks and how to best allocate spend for maximum effectiveness.
Result
To continually manage risk, the company assigned risk owners within each of the 12 domains and assesses risk at least annually to understand emerging risks and mitigation priorities. The assessments of individual domains feed into the enterprise risk assessment for the organization’s 10-K, providing a comprehensive picture of risk throughout the company.
Establishing the process helped management better understand risks to the brand, including product variations in different geographies that had the potential to erode brand identity.
In its third year with the new process, the company’s IT leaders internally developed a software solution that helped leadership fulfill its responsibilities within the risk management program more easily at a tiny fraction of the price it would have cost to buy a commercial software solution.
Related Resources
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Shawn Stewart
Principal, Risk Advisory Services
Grant Thornton Advisors LLC
Shawn Stewart is a principal in Grant Thornton’s Risk Advisory Services practice. Based in Los Angeles, he has more than 18 years of experience and provides process design, internal audit, risk consulting, IT consulting, regulatory compliance, and M&A services to financial services clients.
Orange County, California
Industries
- Construction & real estate
- Manufacturing, Transportation & Distribution
- Technology, media & telecommunications
- Not-for-profit & higher education
- Asset management
Service Experience
- Advisory
Content disclaimer
This Grant Thornton Advisors LLC content provides information and comments on current issues and developments. It is not a comprehensive analysis of the subject matter covered. It is not, and should not be construed as, accounting, legal, tax, or professional advice provided by Grant Thornton Advisors LLC. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this content.
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For additional information on topics covered in this content, contact a Grant Thornton Advisors LLC professional.
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