Comparative ERM Risk-Based CAPEX Investments
As part of its Enterprise Risk Management (ERM) system, this major manufacturing company selected, established and used a systematic risk-based method allowing it to prioritize prevention capex investments amongst its more than 50 plants. The system distinguished between risks that are external to the plant and those that are internal, and allowed to benchmark each plant against its own potential, the company as a whole and its industry peers. It also took into consideration each plant’s vulnerability and resilience within the Business Continuity Management (BCM) framework. The company was therefore able to allocate capex capital according to the highest risk-based return on investment on a comprehensive, comparable basis.
