E.ON developed their risk management process with iFACTS already in 2003. The energy sector is known to lead in the areas of risk management, how risks affect the organizations' overall achievement of objectives. An Enterprise Risk Management (ERM) approach has from the beginning been in focus, as an important part of leading and governing the operations.
The software has later been developed to support more simplified risk management processes.
In cooperation with E.ON New Build & Technology in Hannover iFACTS has configured the software to be more suitable also for project risk management. iFACTS can easily set-up the software to support a number of different risk processes.
Risk management has changed over the years. The focus has expanded from traditional insurable values such as buildings, land, inventory and manufacturing to the intangible values of modern organizations. There are also stakeholder demands to protect value and avoid business scandals such as Enron, WorldCom, and Lehman Brothers. The latter has made risk management — Enterprise Risk Management (ERM) — a part of corporate governance.
By modern definition risk is an event that can affect the achievement of objectives.
The person responsible for risk management is often the company CRO (Chief Risk Officer). Their main assignment is to establish risk processes and an overall risk management system.