The BV-SERM Rating methodology offers both listed and non-listed companies a cross-cutting strategic benchmarking tool which assesses companies' performance in tackling their operational and reputation risk exposure, by evaluating the effectiveness of their risk reduction measures and communication to stakeholders.

Researched and developed by Bureau Veritas and SERM, the BV-SERM Verified Rating takes into account both direct and indirect risks as well as factors associated with the industry sector spread and the company's ability to manage its risks. Through verification visits from specialist BV auditors, the information used to generate a company's Rating is examined and challenged and this provides the basis for a BV-SERM Verified Rating.

SERM Rating Agency have spent five years developing the mathematical model which forms the basis of the Rating. Says Jonathan Barber, Managing Director of SERM: "Our goal is for the BV-SERM Rating to be regarded by both corporate and the financial community as the key financial benchmark of sustainability risk management. Verification significantly adds to the credibility of the Ratings and working with Bureau Veritas will enable the process to be rolled out on a global basis."

Geoff Baker, Chief Executive of Bureau Veritas in the United Kingdom says: "Companies engaging in the BV-SERM Rating process will be sending a strong signal to their investors, insurers and other stakeholders that they are proactively measuring and managing their operational risks. They will have a way of quantifying the value of their investment in the areas of environment, health & safety and social accountability. The BV-SERM Rating can also be used as the performance measure of continuous improvement programmes, enabling a company to improve performance and reduce risks in these areas."

Background

About SERM Rating Agency Ltd

Established in 1996, Safety & Environmental Risk Management (SERM) Rating Agency Ltd, is a UK-based rating agency, specialising in measuring and benchmarking companies' ability to manage the potential safety, environmental and social risks arising from their operations, relative to their financial strength. SERM's mathematical model takes into consideration the total cost (both direct and indirect) of any potential incident and the likely effectiveness of risk management in avoiding or mitigating any such incident. The key Rating outputs are a 'net risk to capital' figure -- based on market value -- and a point on a 27-point scale which runs from AAA+ to C-.

About Bureau Veritas

Bureau Veritas is a world leader in conformity assessment and performance evaluation applied to its clients' business assets, production processes and management systems, providing a complete service in the area of Quality, Environment, Health & Safety and Social Accountability.

With its network of 500 offices, and over 10,000 qualified technical experts in more than 120 countries, Bureau Veritas is uniquely placed to supply clients with services that generate high added value and are intended to guarantee the legality and conformity of their operations, reduce the risks they incur and measure and improve the performances of their organisations.

SOURCE: Bureau Veritas

WEB SITE: http://www.bureauveritas.com/

WEB SITE: http://www.serm.co.uk/

CO: Bureau Veritas; SERM Rating Agency