Enterprise Risk Management Challenges And Solutions
Enterprise Risk ManagementChallenges and SolutionsKen Fetcher, TSAMontrice Yakimov, BFSDoug Clift, Bureau of the CensusW. Todd Grams, Deloitte
EstablishIntegrated perationalEfficiencyImproveManagement ofStrategic RiskSecurityEffectivenessImplementationPlan / Create &Track MilestonesDevelop Policiesand ProceduresERMat TSATradeSpacesFiscal ationsBusinessOperationsImplement RiskMetrics &IndicatorsBuild OrganizationalCapacityEstablish AnalyticalSystems and ToolsInformationRisk AppAppetiteppetiteppRiskRisk LLexiconexicexiconiconRisk TaxonomyyMaturityy ntion StruStcturtureePolicyyructManualPractitioners GuideERM Teamam TraininggCommunityy of PracticeERMERM LiLiaiLiaisonaisosonn TrTraiTrainingaininingnggERM IPT TraininggERM CertificationGeneral ERM TraininTrainingnggRM CoreCororee CompetencyCoomppettenencccyyMaturityy AssessmenAssessmentsntsERM Culture Surveys
Establishing ERM’s Value PropositionEngaging your organization is an evolving process thatrequires steady refinement and cultural awareness toadd value and avoid potential pitfalls.Partner atmultiple levelsKnowbusiness ofthe agencyand how toprovidevaluePage 3Provideopportunitiesto connectindividualsBringeveryone tothe table forconsensus Senior leadership Leadership Manager StaffL E AD T R AN S F O R M D E L I V E R
Example: Developing an Enterprise Risk Profile that InformsDecision Making ProcessesInterviews of SeniorExecutives and Directorsto identify RisksUpdates from varioussources*RiskRiskRisk It’s important tocommunicate that riskscores are a way toidentify/estimate the mostimportant risks to theorganization – vs. servingas an evaluative score cardCommissioner,DeputyCommissioners& ACs Tone at the top is key fordeveloping a culture oftransparency and riskawarenessDialogue with RiskCommittee to prioritizerisksMeeting with SteeringCommittee to finalizerisk scoresCommissioner& DeputyCommissionersResource PrioritizationTactical Plans, etc.IllustrativePage 4Lessons LearnedL E AD T R AN S F O R M D E L IV E R
ERM Survival ChallengesChallengeIssuesActionsCulture Change1. “Risks” are bad!2. If I have risks, the program is managedpoorly3. Siloed risk management practices4. Non-standard approaches5. Someone else’s job1.2.3.4.5.6.7.Risk DataTransparency1. Risk data held closely and not disclosed2. Concerns about disclosure to oversight3. Cross program dependencies withoutcomplete information5Executive level sponsorship andcommunicationTop-down and bottom-up implementationRisk Management as part of ProjectManagement trainingOn-demand training for risk managersRole-based risk management trainingTools, templates, and guides for standardizedprocessesIntegration of risk management practices intocore portfolio management processes1. Implementation of an Enterprise RiskManagement tool to house risk data2. Alignment between risk and program portfoliosin the same enterprise tool3. Established Project and Risk Management UserGroup meetings to share best practices4. Provided full access to the Risk Database for allrisk managers across the enterprise (wanted byus, demanded by them)5. Required element in all Program and ProjectManagement Reviews
ERM Survival ChallengesCensus PMI Community Particpants100500Nov-15 Dec-15Jan-16Feb-16 Mar-16 Apr-16 May-16 Jun-166Jul-16Aug-16Sep-16Oct-16
Questions and AnswersEnterprise Risk ManagementChallenges and Solutions
3. Risk Management as part of Project Management training 4. On-demand training for risk managers 5. Role-based risk management training 6. Tools, templates, and guides for standardized processes 7. Integration of risk management practices into core portfolio management processes Risk Data Transparency 1. Risk data held closely and not disclosed 2.
management and Board Established risk officer or head of risk position (may not be solely focused on risk) Functioning cross-functional senior management risk committee Risk management viewed as a "partner" by the business units Resources dedicated to risk management at the enterprise level Existence of some risk policy
operational risk management as part of enterprise risk management. Keywords: Operational Risk, Enterprise Risk, Banking, Financial Services, Cyber Risk 1 Clinical Associate Professor, Managerial Economics and Decision Sciences. Kellogg School of Management Northwestern University, Evanston, IL USA. E-mail: russell-walker@kellogg.northwestern.edu
81. Risk Identification, page 29 82. Risk Indicator*, page 30 83. Risk Management Ω, pages 30 84. Risk Management Alternatives Development, page 30 85. Risk Management Cycle, page 30 86. Risk Management Methodology Ω, page 30 87. Risk Management Plan, page 30 88. Risk Management Strategy, pages 31 89. Risk
their risk management challenges around risk regulations, enterprise risk management, risk governance, and risk analysis and modeling. Plochan is a certified Financial Risk Manager with 10 years of experience in risk management in the financial sector. He has assisted various banking and insurance institutions with
3 Enterprise Anti-Fraud Committee: Purpose: To establish governance, visibility, and direction for enterprise fraud risks, controls and response activities. Chartering committee: Enterprise Operational Risk Committee (EORC) Key Responsibilities: -Recommend:- Enterprise Fraud Risk Policy updates - Enterprise-level tolerances-Manage:- Enterprise fraud risk standards
Risk is the effect of uncertainty on objectives (e.g. the objectives of an event). Risk management Risk management is the process of identifying hazards and controlling risks. The risk management process involves four main steps: 1. risk assessment; 2. risk control and risk rating; 3. risk transfer; and 4. risk review. Risk assessment
Tunnelling Risk Assessment 0. Abstract 1. Introduction and scope 2. Use of risk management 3. Objectives of risk assessment 4. Risk management in early design stages 5. Risk management during tendering and contract negotiation 6. Risk management during construction 7. Typical components of risk management 8. Risk management tools 9. References .
TO GROUP WORK PRACTICE, 5/e. 64 3 Understanding Group Dynamics The forces that result from the interactions of group members are often referred to as group dynamics. Because group dynamics influence the behavior of both individual group mem-bers and the group as a whole, they have been of considerable interest to group workers for many years (Coyle, 1930, 1937; Elliott, 1928). A thorough .
