Case Study: Murray & Roberts Cementation achieves cash-flow–based ERM and clearer company valuation with Palisade's @RISK

Murray & Roberts Uses @RISK to Evaluate a Cash Flow Based Approach to Enterprise Risk Management (ERM)

Murray & Roberts Cementation, a leading engineering and construction services company, faced a range of enterprise risks typical of the construction sector—market downturns, protracted strikes, safety incidents and project delays—that threatened cash flow and company value. Wanting to move from qualitative ERM to a cash flow–based, quantitative approach, the company engaged Palisade and adopted the @RISK simulation tool to link risk exposures directly to enterprise value.

Palisade implemented @RISK to simulate enterprise DCF/EVA models, incorporate correlations between the top risks, and run inherent versus residual risk scenarios (using binomial and PERT distributions and sensitivity analysis). With Palisade’s one day of consultancy, Murray & Roberts Cementation found the residual baseline cash flow rose from about 12.6 billion Rand (inherent) to 13.6 billion Rand after controls—while worst‑case outcomes improved from −5.1 billion to 4.6 billion Rand—and identified which risks delivered the greatest variability so mitigation could be prioritized.

Murray & Roberts Cementation

Sean De La Rosa

Project And Enterprise Risk Manager