Rayon Essay

746 WordsMay 4, 20143 Pages
CASE STUDY: Embrace Risk Build Value RAYTHEON Results: Risk-aware organizational culture with proactive risk management Raytheon Improves Risk Visibility and Responsiveness by Embedding a Proactive Risk Culture with ARM Challenge: Insufficient Solution: Implement understanding ERM software of risk, inability and make risk to identify and management prevent risks a priority The Challenge Raytheon launched an ambitious Enterprise Risk Management program designed to change its risk culture from reactive to proactive, and to accurately forecast and mitigate the impact of risk on key programs. With a history of innovation spanning 90 years, Raytheon provides state-of-theart electronics, mission systems integration and other capabilities in the areas of sensing, effects, command, control, communications and intelligence systems, as well as a broad range of mission support services. Prior to implementing an Enterprise Risk Management (ERM) program, Raytheon had insufficient understanding of how risk affected its projects. The culture at Raytheon was reactive and not truly risk-aware. The focus was on fixing problems and putting out fires, rather than a proactive approach of identifying and preventing problems before they occurred. Raytheon’s brightest thinkers were engaged almost exclusively with their daily tasks of technical scope, rarely able to raise their heads to look at the big picture or gain visibility of the risk landscape. Without access to comprehensive risk data, Raytheon found it difficult to identify its outstanding risks and their probability of occurrence, causing forecasts to be less accurate. There was also a disconnect between the information used by employees on the ground and executive decision makers. The Solution With ARM, Raytheon can now produce monthly risk reports in a quarter of the time, improving responsiveness to customers.
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