SKF

QUANTIFYING THE BUSINESS RISK

 

When SKF wanted to understand the risks at a crucial production facility, it tapped the knowledge of FM Global’s Business Risk Consulting (BRC) team. BRC helped SKF understand the risk vulnerabilities at its sprawling manufacturing facility in Airasca, Italy, which annually produces nearly 19 million wheel hub bearing assembly units for the automotive industry.

“The Airasca plant plays a significant role in the world’s car manufacturing industry,” says Klas Iloson, SKF managing director of Group Risk Management. “If something were to happen there, it could have devastating consequences on the entire supply chain.”

FM Global’s BRC performed a business impact analysis to determine the reputational and financial implications of an incident at the Airasca facility. Their findings showed that even a small event could cause a significant long-term loss of market share in the highly competitive business.

“The business impact analysis helped us better understand the risk and its potential negative impact on our supply chain, facility and customers,” says Aurelio Nervo, head of business and product development, SKF Automotive and Aerospace. “After that, we knew we had to address our risk issues head-on.”

SKF made a major fire protection investment at the plant, upgrading its fire pumping station and water supply and installing 10,000 sprinkler heads covering 700,000 square feet (65,000 square meters) of factory space. The result was a more resilient factory, a more reliable supply chain for the automotive industry and a highly protected risk award for the plant.

“It’s a great satisfaction to have an HPR award,” Iloson adds. “We show it to our customers so they can see our commitment to loss prevention.”