One approach to risk management does not fit all. Risk management is a diverse discipline that does have a set of standards (i.e., ISO31000). Still, some many approaches and tools can be utilised to suit the specific objectives that an organisation wants to get from ERM. With over two decades of experience in risk management and a background in Chartered Accountancy, Paul Peter understands the nuances of ERM perfectly. Working in the mining industry, he realised that they applied the same risk management framework to major capital projects, safety management, business processes, strategy, cyber exposures, business continuity, and more. He got frustrated by being ‘boxed’ in by using the same framework and reporting risks in the same way irrespective of the nature of the risk or the process. Peter believes that risk management in organisations needs to move away from calculating and plotting risks on a matrix to a more dynamic interactive approach where uncertainties and complexities are measured and reported on time.
In 2016, Peter founded Auxilium One to deploy innovative solutions to risk management without being restricted to a specific risk methodology or framework. Auxilium One applies ALARP (as low as reasonably practical) and layers of protection strategy from the safety industry to operational processes to assist in driving variable costs down. To create innovative and cost-effective ways of understanding risks, the company applies various strategies like option analysis to maintenance strategies, decision trees to cybersecurity, and game theory to business strategies. Peter leverages his knowledge and experience in the mining industry to provide Safety and Risk Management Consulting services to various sectors such as manufacturing, utility services, maintenance, and engineering.
Fit for Purpose Risk Management Solutions
Australia-based Auxilium One focuses on fit for purpose risk management solutions to meet the organisations’ business objectives.
We have a network of independent consultants we sub-contract with to ensure the customer gets maximum value and has access to experienced subject matter experts
In the last five years, Auxilium One has facilitated risk assessments for business strategies, business processes, capital projects, safety, cybersecurity, process improvement, and country risks across various industries and disciplines. “We have a network of independent consultants we sub-contract with to ensure the customer gets maximum value and has access to experienced subject matter experts,” says Peter, director of Auxilium One. This way, the company merges their experienced risk facilitator with independent world-class Subject Matter Experts to deliver fit for purpose risk management outcomes to customers. Peter explains that risk management is about looking ahead and identifying events, trends, and views, both locally and globally, to assess its impact on businesses. To that end, Auxilium One taps into its network of subject matter experts, risk management conferences, and current clients to stay relevant and assist its customers in looking at what is lying ahead.
Auxilium One has worked with several organisations to implement risk application systems. “We work with a number of risk application providers to select a fit for purpose system for organisations and also have the knowledge and experience to implement and embed the system,” says Peter. The company serves the needs of both large corporations looking for a sophisticated risk management solution or a small business looking for a “fit for purpose” safety management solution or advice. “No matter what client’s needs are, we have the experience and skills to provide those with exceptional service.”
Citing a case study, Peter explains how a client identified technology risks that could impact the business, such as cloud computing, robotics, blockchain, 3Dprinting, but did not know how to prioritise resources and capital to address the risks. Auxilium One used a combination of cause/effect and what-if analysis to prioritise a range of projects to address these risks proactively. In another instance, a company had limited capital to spend on a road upgrade. Auxilium One surveyed to identify high-risk road features and then performed structured “What if” (SWIFT) assessments or hazard studies on each of these areas to understand the impacts.
The company then conducted a bow-tie analysis to identify causes and engineering controls to best address these causes.
Driving a New ERM Mindset
Scripting such success stories, Auxilium One is steered by Peter, who has spent over two decades at Corporates working in the mining industry and lived in South Africa, The Netherlands, and Australia. He was exposed to mining projects, commodity trading, and business strategy risks worldwide and has spent time on projects and assignments in the U.S., Chile, Africa, Singapore, and Australia. He commenced his career working in the mining industry in South Africa, after which he moved to The Netherlands and then relocated to Australia. In addition to risk and safety management services, he is also passionate about passing on his knowledge and experience through the development and training of risk management resources in organisations. Peter’s key learning from his years of experience in the risk and safety discipline is that complexity and bureaucracy causes risk and safety management systems to fail. His key philosophy and focus are, therefore, to keep it simple, practical, and transparent.
"No matter what client’s needs are, we have the experience and skills to provide those with exceptional service"
Peter observes that organisations are still applying frameworks and risk matrices without first understanding the purpose and objectives they want to get out of risk management. Organisations still think they need a risk department with dedicated risk managers to identify and manage risk. This only drives a compliance mindset rather than an inquisitive mindset. He believes that organisations need to create a risk culture where every employee acts as a risk manager and gets to implement risk management tools and approaches that can provide relevant and timely information to decision-makers in the organisation. Risk Management in organisations needs to move away from calculating and plotting risks on a matrix to a more dynamic interactive approach where uncertainties and complexities are measured and reported in a timely manner. Here, Auxilium One is working toward helping clients embrace this culture. The company will continue offering the experience and network partners to provide risk management and subject matter expertise to customers that are cost-effective and fit for purpose. The company will keep assisting clients across a wide range of topics such as capital projects, technology, operational processes, process improvements, finance, business strategies, and safety management.