Identifying and addressing risk helps the company continue operating as efficiently and profitably as possible in the face of challenges. Sometimes, effective risk management can also determine additional opportunities for success.


With the completion of Business Continuity Plans at every Cummins site (more than 500 in all) around the world in 2015, the company’s Enterprise Risk Management function focused its attention on 74 locations deemed critical to Cummins’ operations.

Cummins’ Risk Insurance team sponsored a Six Sigma project to identify sites critical to the company’s continued operation. Senior leaders affirmed the selection of these sites as key to Cummins’ on-going profitability.

Several of the 74 have undergone “stress tests,” table-top exercises simulating any number of real world emergencies to assess their continuity plans. Cummins’ locations in Charleston, South Carolina (USA) area, for example, underwent a stress test in 2015 that included localized flooding as one potential emergency.

Just a short time later, Cummins sites in the Charleston area experienced actual flood conditions and reported an improved response thanks to the table-top exercise they had undergone just a short time earlier.

“It’s really important to work through the gaps and redundancies so you have the right people in the right places when something happens,” said Bindu Yadlapalli, Director – Enterprise Risk Management in the Corporate Strategy Department. She said more stress tests are planned in 2016.

Enterprise Risk Management has other responsibilities at Cummins. In 2015, the team executed a risk assessment that involved key leaders across the company.  The objective of the risk assessment was to provide the Board of Directors, the Cummins Leadership Team and other key stakeholders with an enterprise view of significant business risks that could adversely affect Cummins’ ability to achieve operational and strategic objectives.