One platform, infinite possibilities.
Discover how Aperitisoft™ is an intelligent, integrated solution—from enterprise risk management to GRC— that empowers organizations to achieve measurable ROI.
Enterprise Risk Management
CASE STUDY
Background
MANUFACTURING – the Latin American Division of a Fortune 500 Conglomerate had returned 5 consecutive years of Operating Losses with the last year being a $15 Million loss. The Division covered 15 countries and 4 languages. Convinced they understood the issues, Management devised a strategy that (they believed) would rectify the problems.
Solution Strategy
STRATEGIC RISK ASSESSMENT
Identify, analyze and evaluate the risks to the new Strategy and Strategic Targets.
QUANTITATIVE RISK ANALYSIS
Deploy Monte Carlo Simulation to results-based estimates of each risk in dollar terms.
RESPONSE & MONITOR
Modify the Plan to address the Key Risks identified and monitor Key Risks and progress.
APPLICABLE SOFTWARE
Case Summary
First, to assure the will of the CEO would not overpower the Strategic Risk Assessment (SRA), the Lead Consultant privately asked the CEO to write down on a 5×7 card the Top 5 risks he felt could effect performance (the same risks incorporated into the new Strategic Plan) and asked him to abstain from the SRA workshops. Business Unit leaders from every country participated in the workshop. Of the 50 identified risks only 7 produced 80% of the impact, measured as a result of the quantitative analysis. Once the analysis results were in, the CEO was asked to reveal the 5 risks he had written down. None of his risks were even in the Top 20. He openly admitted that “without proper risk analysis the squeaky wheel will always get the grease, but it may not be the reason the car is broken down.” He immediately ordered the Strategic Plan to be revised to address the Key Risks identified.
The Results
It Has Been Said…
“Life is inherently risky.” – Denis Waitely
There is no way to avoid risk – the only way is to engage in risk management. Don’t be held back by fear or doubt—contact us!
In just a minute, we can link you to the right ERM software for you.
CASE STUDY
Background
CLOTHING & SHOES DESIGNER, MANUFACTURER & RETAILER – the Company has been experiencing a 3 year history of volatile revenue and earnings performance. Revenues are currently around $500 Million. The CEO, owner and namesake is convinced that the historical fluctuations are solely due to design issues and lack of enough higher end product.
Solution Strategy
COST OF RISK BASELINE
Decipher 16 quarters of historical financial results to establish a cost of risk (COR) baseline of the company.
HISTORICAL EVENT IDENTIFICATION
Identify the events (negative and positive) that caused the Core Performance variances calculated in the Baseline.
DATA ANALYTICS
Analyze the results to ascertain connections between risks, risk management and performance.
APPLICABLE SOFTWARE
Aperitisoft™
Engagement Summary
Utilizing the Aperitisoft™, the last 16 quarters of financial results and budget data were uploaded and deciphered. Decipher workshops with key management personnel were conducted to create the decipher template for Cost of Risk. Management found value in the decipher process itself – in how it changed their thinking about expenditures and resource allocation. Results from the decipher are immediate in the system, so the major findings and anomalies were identified right away. Management were asked independently in interviews to divulge the events that were behind the core business variances and explain anomalies. With all data entered into the system, the root causes of the performance volatility were obvious to recognize.
The Results
Data analytics revealed that product design and inventory did not match with demand through any of the company’s channels to market. This was at the root of the volatility. Although the CEO had strong feelings about making his company a “high end” brand, his customers had a different idea. Brand reputation was strong and customer demand for a certain group of products was constant, however, their “high-end” designs were not being received at higher prices. Realizing that the process for the design-to-distribution process was driven by “gut feel”, not data, the company devised a multi-pronged response strategy that included front-end market research and more targeted marketing campaigns to increase demand. This $13 Million strategy closed the gaps in volatility, generating $57 MILLION IN NEW, GROWING & STABLE REVENUE.
Did You Know That…
An analysis by a Fortune 50 company revealed that a 10% reduction in earnings volatility yielded a 20% improvement in P-E Ratio. But the business climate is becoming more volatile. It’s no wonder businesses struggle to perform consistently.
Contact us, we’ve got this!
CASE STUDY
Background
GOVERNMENT AGENCY – as a $280 Million State Agency reached a critical mass of conservation land holdings, the Governing Board and constituents grew concerned over the cost effectiveness of the Agency’s risk management activities. Public complaint painted a certain picture in the media, but it lacked facts.
Solution Strategy
ENTERPRISE RISK ASSESSMENT
Conduct an enterprise risk assessment (ERA) of the programs involving Conservation Land Holdings.
QUANTITATIVE RISK ANALYSIS
Deploy Monte Carlo Simulation to results-based estimates of each risk in dollar terms.
COST OF RISK BASELINE
Analyze the results to ascertain connections between risks, risk management and performance.
APPLICABLE SOFTWARE
Engagement Summary
The Results
The COR baseline revealed that the Agency has been spending $6 Million annually to address Land Holdings risks. The ERA quantitatively measured the Inherent Risk Level to be $28 Million higher than the Current Risk Level. This means a $6 MILLION ANNUAL INVESTMENT YIELDS A $28 MILLION BENEFIT! New Key Risks were also identified that could drive additional benefits through Risk Response action.
Did You Know That…
CASE STUDY
Background
HEALTHCARE & LONG-TERM CARE – the Company had been experiencing a high level of incidents causing injury to residents resulting in hospital visits. The level of staff turnover was problematic due to constant chaos from issues happening causing morale and stress for staff.
Solution Strategy
RISK BASELINE
Utilize 2023 manually reported incidents to determine a baseline risk assessment for various categories of incidents for the company.
HISTORICAL EVENT IDENTIFICATION
Identify the incidents that caused the Core Performance variances calculated in the Baseline.
DATA ANALYTICS
Analyze the incidents to determine root cause of incidents.
APPLICABLE SOFTWARE
Engagement Summary
Utilizing Aperitisoft™ Healthcare incident management module, the 2023 incidents were loaded into the system. They were categorized to be able to decipher which categories were driving the greatest risk. The highest risk categories were prioritized for Corrective Action Plans (CAPAs). Individual corrective action plans were developed and assigned to each incident. Also, action plan and individual milestone owners were assigned, along with due dates, thereby automating the planning and management of the corrective action process.
The Company was very focused on the biggest bang for the buck to get incident CAPAs in place and prevent those categories of incidents from happening again. Some of the areas with the greatest incidents were in the areas of falls, infection control, skin tears and bedsores.
The Results
Data analytics revealed that the sharp prioritization of high-risk categories significantly reduced the overall risk exposure for the Company. In the category of
falls, a 433% monthly reduction was experienced in 2024.
Overall, the implementation of the Aperitisoft™ Healthcare system has vastly improved the Company’s ability to manage risk and not let things just happen as
surprises. The Company focused on managing the risk and mitigating risk to improve the business. This shift has improved the Quality & Compliance program and it is prevalent in every aspect of the business to improve resident census through a strong reputation, lower costs, reduce legal exposure, reduce insurance premiums and reduce staff burnout and turnover and the associated costs and impacts.
Did you know that…
When you work Aperitisoft™, you also have access to ARQ Technology™, a groundbreaking patented software tool that uncovers the hidden cost of risk, which is a critical factor often missed by traditional accounting. By using a patented cost accounting method, it isolates these costs from your core business, giving you a clear and accurate view of your financial and risk management performance. Think of it as creating a “5th Financial Statement™” that links risk and financial results, empowering you with actionable insights to improve your bottom line. We’ve thought of it all, and it’s all available on one platform. Contact us today for a demo and we’ll walk you through how easy it can be!
