ABOUT THIS REPORT The information in this report is ... - Cummins

TRAVEL SECURITY
Managing risk key to sustainability
BUSINESS CONTINUITY PLANS
GOVERNANCE & RISK
Keeping our business units up and running is the ultimate
goal of the Risk Management group at Cummins, making
their work critical to keeping our Company sustainable.
That’s why Cummins’ Risk Management
team is now taking a broader approach
to their work: not just focusing on how
focus to global processes to make sure we
have the redundancy necessary to meet our
customers’ needs in a global marketplace.”
Cummins Japan Ltd. has been
to keep a particular location operational,
busy helping with the recovery
Cummins believes strongly that managing
but also how to keep numerous global
efforts following the March 11,
risk effectively enables a company to invest
2011 tsunami. Months after functions operating.
the disaster, volunteers from
the Company visited two cities
that were largely destroyed.
Some are photographed here.
“The idea is to take a more holistic
approach to risk management,” says
in building stronger communities and in
reducing its environmental footprint.
This means the Company cannot afford
Cummins’ facilities suffered
relatively little damage.
Brian McBroom, Cummins Director of Risk
Management. “We want to expand our
lengthy delays, especially in its most
critical functions.
A major task for the Risk Management
staff, however, remains the preparation
of Business Continuity Plans for the most
critical Cummins locations.
These plans include detailed information on
crisis communications, operational recovery
and emergency preparedness. Upon
completion, the plans are transferred to
local leaders who update them annually.
The staff has prepared well over 100 plans,
but as Cummins grows, the need for
additional plans increases. The Distribution
Business Unit, for example, wants all of its
sites and branches – some 500 locations –
to have continuity plans by the end of 2014.
To meet that goal, McBroom said the
Limiting risk for Cummins employees while
they travel is one of the responsibilities of
the Global Security team at Cummins.
The team fulfills that mission by providing
employees with variety of travel information
including up-to-the-minute security assessments
of travel destinations around the world.
The information is delivered in multiple ways
including Global Security’s “Travel Smart, Travel
Safe” website available on Cummins’ intranet site.
Billed as “your one stop for your international travel
needs,” the site includes travel “DOs and DON’Ts”;
frequently asked questions and answers; travel
tips for women; travel tips for lesbian, gay, bisexual
and transgender employees; advice on how to
travel with medical prescriptions; weather and
much more.
GOVERNANCE & RISK
Senior leaders at the Company maintain a
continually updated list of the top threats
facing Cummins. Frequently, Six Sigma
Black Belts, those employees most adept
at using the business problem solving tool,
are assigned to research potential threats
staff has created a Business Continuity
Plan training package that helps sites
create their own plans, with the Risk
Management team providing support
remotely. This new training package
enables the Risk Management team to
The site started in 2010 and has expanded each
year since. It also offers detailed information on
travel to countries that might present a high or
moderate risk to visitors, especially those from
certain parts of the world.
and possible counter actions.
focus on the “big picture” as our global
The Company works with vendors who not only
Additionally, leaders present a “Risk
Map,” “Risk Dashboard,” and a list of the
footprint continues to expand.
Recent natural disasters ranging from
provide information but also respond to such
things as medical emergencies across the world.
“Top 10 Risks” and their corresponding
mitigation strategies at every Board of
Directors meeting. This keeps Cummins
directors informed about potential
obstacles to the Company’s success.
the tsunami in Japan and earthquakes
in Mexico, to the tornadoes in Southern
Indiana and Kentucky in the spring of
2012 underscore the urgency of completing
the plans. To protect Cummins’ supply
In 2011, the Global Security team initiated and
completed online training for employees who
travel for their jobs. The training targeted
employees who travel to high- and moderaterisk
countries and included advice such as taking
chain against similar risks, the Company’s
different routes to work sites and on how to raise
suppliers are also asked to create and
awareness about your personal surroundings.
maintain their own continuity plans.
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