Energy & Mining | Investment Decisions Through Process Discipline

As investor expectations climb, challenges threaten the U.S. Energy and Mining sector, including escalating costs and increased regulatory obligations.

Over the last several years, natural resource companies have begun developing larger, more diverse, and more complex investment portfolios. In a market with fluctuating commodity prices and increased margin pressures, it is more important than ever to maintain robust process controls on investment decisions. Doing so will minimize risk while maximizing shareholder value.

SITUATION
  • The client faced rising costs and lower commodity prices, squeezing its bottom line
  • The client had gone through a period of poor investments and undisciplined spending, resulting in very large losses
  • Inconsistent processes and a lack of documentation across various regions resulted in varied business investment policies and unpredictable financial results
APPROACH
  • Implemented business processes supporting the establishment of an internal audit committee and capital approval board to facilitate informed investment decisions
  • Instituted a data-driven feedback loop to apply lessons learned and ensure business case accuracy and reliability
  • Developed a change management program to ensure enterprise-wide adoption and promote culture of continuous improvement
BENEFIT
  • Increased investment portfolio performance and shareholder value
  • Established a clearly defined governance structure to facilitate the approval of investment decisions and allocation of resources
  • Standardized and improved the transparency of the investment decision making process

For More Information, please contact:   Steve Foster   |   720 341-5535   |   Email