TÜV SÜD ANNUAL REPORT 2010 GLOBAL ANALYSES At Honeywell International, the group's risk management policies are controlled from the company headquarters (top). Left: Risk Manager Jason Turkovich (centre) appreciates the well-founded, solid assessments provided by James Marsh (left) and Joe Petrellis. You have to know your weak points if you want to be prepared for emergencies. And that applies to individuals just as much as to companies. Since 2010, TÜV SÜD has been helping businesses identify their weaknesses. Last year, the Group acquired the world s largest provider of independent risk assessments: Global Risk Consultants. For Joe Petrellis, the world is fraught with risks. When acting on behalf of his clients, the engineer assumes the worst: What would happen if a fire crippled certain parts of a production facility? How high is the risk of production loss if a pressure vessel fails? And what would happen if a hurricane wreaked havoc on the office building or the factories? Joe Petrellis is a Principal Account Engineer at Global Risk Consultants (GRC). The company, headquartered in New Jersey, around half an hour from New York City, is the international leader in unbundled property loss consulting and control and became a member of the TÜV SÜD Group in the summer of 2010. Within the global network of the testing and certification group, around 19
01 02 03 04 Management and Supervisory Board I World Time I Group Management Report I Consolidated Financial Statements 350 GRC experts advise clients on fire protection engineering and emergency preparedness, assess the safety of plants, buildings and processes, and inspect steam and pressure vessels, electrical components and machinery at regular intervals. A special group focuses on natural hazard analysis, assessing the natural disaster risk in certain regions a service that has also held fundamental significance for many companies even before the quake and the tsunami in Japan in March 2011. FROM HOUSTON TO HANOI For TÜV SÜD, the acquisition of GRC one of the largest company acquisitions in its history means a further expansion of its global presence.»like TÜV SÜD, GRC always thinks global«, explains James Marsh, Deputy CEO of GRC.»Our clientele includes some of the largest multinationals. As our company name indicates, we provide global support.«the new TÜV SÜD subsidiary promises to deliver its services worldwide and support its clients in a wide array of issues, whether the assistance they need involves an existing branch in Texas or a new plant to be built in Vietnam. Advice on investment decisions GRC's independent services provide Honeywell with two major advantages: The multinational gains substantiated insights informing it about the locations involving the highest risks also for the entire company.»in our highly networked world, the downtime of a special machine at a location in Asia Pacific may rapidly cause supply shortages and production loss in Europe«, explains James Marsh. The GRC experts assess plans and processes, verifying their assessments in detailed on-site inspections to create precision analyses that help the company to improve its control of existing risks and make investment decisions.»we inform our clients where specific facilities involve particularly high risks. The clients can then»our clientele includes some of the largest multinationals. As our company name indicates, we provide global support.«companies like Honeywell International appreciate these one-stop services. The technology group has 130,000 staff in the Americas, Europe and Asia Pacific. This global player has been trusting in GRC s expertise for over 15 years and has commissioned the GRC experts to assess all its locations across the world from its headquarters in the USA to its production facilities in Pune, India. The challenge is to make sure clients have consistent, rigorous loss prevention and process management wher ever they operate. Companies like Honeywell are only able to do that through strong partnerships internally and externally with companies like GRC, according to Jason Turkovich, a Director of Risk Management at Honeywell International. Smooth operation To ensure smooth business operations, all technical installations including cooling and heating systems must work perfectly. 20
TÜV SÜD ANNUAL REPORT 2010 morristown I 42 31 N 74 25 W Health and safety taken into consideration? Joe Petrellis uses a checklist to monitor the state of repair of a pressure vessel plant. His analysis will be included in the risk assessment prepared by GRC. 21
TÜV SÜD ANNUAL REPORT 2010 decide on the most urgently needed modernization or repair measures. In addition, we also provide consulting services from the planning stage, advising our clients on, say, whether the west or east coast of the US is more suitable for a new plant«, adds Joe Petrellis. Honeywell International also calls in the GRC experts at an early stage when planning the acquisition of a company. Effective helpers Even simple fire protection measures such as the number, positioning and state of repair of fire detectors and extinguishers are of significance for risk insurers. Internationally recognized standards For clients such as Honeywell international, GRC s analyses also mean greater control of their risk management program: insurance companies also offer loss control services known as bundled services in insurance jargon. The benefit of unbundled services is that you don t have to change your engineering provider every time you change your insurance program, says James Marsh. This way, you don t have to start over again each year when a client places their program in the insurance market. The other advantage is that the client has all the risk information needed, as provided by GRC, to obtain the best price, terms and conditions in the marketplace. Given this, GRC s services deliver a positive financial impact to their clients program.»having a non-biased, objective view regarding loss prevention is very important to us and our insurance partners as well.«in its roughly 50 years of corporate history, GRC has built up an outstanding reputation; the high quality of its analyses in accordance with recognized international standards are held in high esteem by both clients and insurers. Jason Turkovich from Honeywell International can only agree, and comments that having a non-biased, objective view regarding loss prevention is very important to Honeywell and its insurance partners. GRC s ability to customize reports, enhance the amount of information provided in reports, as well as GRC s reputation as being»best in class«in the risk management and insurance community have been GRC s key advantages. Global corporation based in New Jersey Honeywell International is one of the largest companies in the USA, generating sales of around 35 billion US dollars. 23