Described as "a corporate budget system for loss mitigation," SMART (Systems Methodology Applied to Risk Termination) is implemented as a permanent element of each client's management structure.
Our flagship product is designed to systematically and collectively identify, evaluate, rank, and manage every conceivable type of risk – legal, political, technological, cultural, financial, social, or reputational. SMART meets and exceeds the guidelines of SMS, ERM, COSO and ISO 31000.
It has been successfully utilized in a wide variety of applications: telecommunications, health care, criminal justice, offshore oil drilling, coal mining, commercial space, petrochemicals, environmental protection, mass transit, food processing, nuclear power, aviation, and terrorism control.
SMART consists of the following 10 sequential steps:
- Define the organization's KNOWN INPUTS and DESIRED OUTPUTS
- Build a FUNCTIONAL MODEL that transforms the client's known inputs into its desired outputs
- Create RISK SCENARIOS for every element of the client's functional model
- Prepare COUNTERMEASURES for every risk scenario
- Determine full COST of every countermeasure
- Set CRITERIA for risk scenario severity, probability, and countermeasure cost
- Establish a client RISK JURY to evaluate each risk scenario against criteria
- Assemble evaluated scenarios into a RISK TOTEM POLE
- Implement RISK CONTROLS for significant risks
- Keep Risk Totem Pole UP-TO-DATE
There are three phases of SMART for each client:
implementing a proactive management infrastructure -- under professional guidance -- which consists of logical and progressive steps culminating in the executive's Risk Totem Pole.
realizing the unique benefit of controlling every type of risk from a positive perspective that foresees and precludes risks on a cost-effective basis -- allowing managers at all levels to invest wisely the limited resources available to control losses.
maintaining top proficiency of risk decision-making by incorporating the latest upgraded techniques and concepts developed during ongoing application of SMART by its broad base of users.
There is a remarkably close parallel between a client's financial budget and a Risk Totem Pole.
They both provide top management with:
- Information for proactive decision-making.
- Guidelines for efficient resource allocation.
SMART is your answer to MANAGING your risk!