Implementing an effective ERM program in CellMark

Abstract

The business landscape is never stagnant and faces obstacles constantly, everything from internal challenges to external challenges such as the COVID-19 pandemic, which is why managing risks effectively is crucial for business to succeed. This bachelor’s thesis investigates the implementation of an efficient enterprise risk management system and its effect on business performance, and identifies crucial elements that contribute to a successful implementation of ERM. The center of this thesis is CellMark, a multinational corporation operating in the supply chain sector. The COSO ERM framework has been a standardized approach for companies, but challenges such as lack of risk management culture, senior management commitment, siloed approaches, data availability and cultural barriers still remain. For a comprehensive understanding, this paper integrates a literature review, empirical research, financial analysis of CellMark and interviews with the company’s managers. CellMark have demonstrated resilience by implementing cost-saving measures, adapting to new market environments and making strategic investments. The company has actively focused on ESG risks to address market and cyber risks, however still faces challenges. This study emphasizes the importance of risk assessment, prioritization, crisis management plans, supplier diversity, and how the implementation of simulation can enhance ERM and provide effective risk analysis and decision-making.