Page 46 - CCCA Magazine Summer 2015

{ inSiDe eDge }

A riSk-BASed ApproACh to mAnAgement

By Denis Lavoie

Enterprise risk Management (ErM) is a powerful framework After all, in-house counsel know their
used to navigate risk at the strategic level. it allows you to identify organizations’ business and risk tolerance,
and are well positioned to provide risk-
the likelihood and size of risk associated with your organization’s adjusted advice. In fact, in many compa-
operations, and then determine ways in which you can mitigate nies, in-house counsel are already part of
the ERM process—as evidenced by the
the negative risks and take action if they materialize. rise in lawyers I see at ERM meetings and
conferences. So if you are not currently
involved in an ERM process within your
ts purpose is not to avoid risk, but impact. If personal information gets into company, it should be on your radar go-
rather, to determine the risks worth tak- the wrong hands, our reputation would be ing forward.
iing—the ones that will help (or hinder) at stake. Though we can’t avoid every issue, ERM is a structured, continuous pro-
the achievement of your organization’s we have systems in place to prevent hack- cess that involves the whole company.
strategic objectives. This is a key part of ing and combat technical failures. And if While senior executives lead and the
my role at VIA Rail as Director of Risks, something does occur, the IT and legal de- Board of Directors overseas the process,
Insurance and Claims. partments are ready to implement a busi- everyone across the organization should
For a transportation company like VIA, ness continuity or disaster recovery plan. play a role. At VIA, our goal over the
safety is our highest priority. We have a Collaboration between the legal and next year is to instill a risk-aware culture
no-risk policy. Derailments and collisions ERM departments is critical. With the rise among all levels of employees. This means
can cost us dearly, both fnancially and in of new regulatory demands, new technolo- that employees will take the time to con-
the eyes of the public, so we make sure we gies, fnancial pressures and a host of other sider all the possibilities, both positive and
go above and beyond to ensure the safety factors, the volume and severity of risks negative, associated with each project they
of our employees, passengers and the have increased. In-house counsel provide take on. Risk analysis—and the develop-
public. We are constantly looking for ways important input into the ERM process, as ment of appropriate strategies—must be
to prevent accidents. To do this, we have they consider risk from strategic, opera- a part of everything.
key risk indicators in place that alert us to tional, reporting and compliance perspec- The changing nature of risk man-
any issues requiring immediate attention. tives. At VIA, like at increasingly more or- agement demands greater involvement
Information Technology (IT) is another ganizations, our CLO is “Chief Legal and from everyone. A formal ERM process
area fraught with risk. At VIA, more than Risk Offcer” and his portfolio includes not ensures you and your organization are
70% of our tickets are sold through our only legal and compliance matters but also prepared to succeed in both the short-
website. If the system is down for even a the implementation of the enterprise risk and long-term. ❚
few hours, it would have a major fnancial management program.
“ In-house counsel know their organizations’ awarded by the Institute of Risk Management
Denis Lavoie, LL.B., D.E.S.S., is
the Director of Risks, Insurance
and Claims at VIA Rail and
heads up its ERM initiatives.
”
His innovative and compre-
business and risk tolerance, and are well
hensive approach to ERM was
recognized by his nomination
positioned to provide risk-adjusted advice.
for a coveted international prize
(IRM) in England. IRM’s shortlist held six ERM
specialists from around the world, with Denis being

46 CCCA MAGAzinE | SuMMEr 2015 été the only nominee from North America.