Case Study: Three Steps for Bringing Risk Management Back in House

• Published in: ERM Enterprise Risk Management pp. 217 - 228
• Main Authors: J.D, Renee Reimer, Ketcham, Christopher
• Format: Book Chapter
• Language: English
• Published: Chichester, UK John Wiley & Sons, Ltd 25-04-2014
• Subjects: enterprise risk management (ERM); ERM council; Memorial Hermann (MH); narrative risk description; risk identification; third party administrator (TPA)
• ISBN: 9781118539521; 1118539524
• DOI: 10.1002/9781118892015.ch11

This chapter discusses the bringing back of Memorial Hermann's (MH) risk management from being outsourced to a third party administrator (TPA) firm to in‐house. It was decided that a three‐step approach be adopted to re‐establish a risk management function in the organization and create a strategic approach to management of risks. Step one involved laying the groundwork or a design‐build phase to create the foundation for a high functioning internal risk management department including adding the necessary business intelligence data structure. Step two was the introduction of an enterprise risk management (ERM) framework into the organization and the establishment of an enterprise risk council. Step three is focused on the maturation of the ERM approach to risk identification and management at a strategic level and the expansion of and integration of ERM principles, including the development of a narrative approach for expressing the potential impact of certain risks.