Risk Profiling A Means to Prioritize Corporate Audit Schedules

摘要

Risk profiling is a technique that combines risk measurements over a broad spectrum of business objectives (i.e. health and safety, the environment, business interruption, etc.). Using risk profiling allows fundamentally different business types to be compared on a common basis (i.e. potential dollar loss per year). Being able to compare each business type using the same basis allows decision-makers to allocate resources where they will achieve the greatest benefit. This paper will describe the development of a tool by ERM Risk that allows corporate EHS managers to easily prioritize their audit schedule for various businesses within their organization based on risk. The goals of this tool are to: 1. Evaluate and rank audit sites by their corporate risk profile, 2. Identify major risk contributors for each operation, and 3. Improve auditing efficiency through identification of risk drivers. The tool utilizes a 3-step approach that combines expert judgment with site-specific data to produce a risk ranking for each facility. The risk-ranking methodology will be illustrated through the use of a case study from a large multi-national oil & gas company.