Enterprise Risk Management

Growing market complexities drive clients' need to understand, measure, and mitigate potential risk to corporate profitability. Pace Global has responded with enterprise risk management (ERM), a best-in-class enterprise risk management system. Our approach to ERM is a three-step process: (1) enterprise risk assessments, (2) risk-cognizant performance expectations, and (3) response & feedback. 

The first step is to identify risk variables that can be quantified through rigorous use of statistical analysis, such as energy commodity prices, emissions values and weather-related impacts on supply and demand.  This is enhanced to include contingent-event risk driven by non-predictable issues specific to the firm, or related to industry externalities.

Next we incorporate the risks identified in the first step to provide clients with risk-adjusted financial statements, key performance indicators, and minimum performance standards.  The goal is to provide senior executives with the necessary information and data to make reasonable and informed decisions in an uncertain environment. 

Finally, having accomplished steps 1 and 2, senior executives are able to take mitigation actions, developed revised impact and probability assessments, create transparency throughout executive corps, and revise plans and formulate tactical responses that allow the organization to adapt to constantly changing economic conditions.

For more information, please contact:
 Jim Diemer at 703.818.9100 or via email.