Risk management 2

Chapter 12

Measuring Performance at Intuit

Introduction

· Intuit’s ERM Journey

· ERM Maturity Model

· Benefits of Measuring Performance in ERM Models

· ERM Performance Measurement and Reporting

· Conclusion

Intuit’s ERM Journey

· Began with ad hoc risk management

· Very common entry point

· Escalated to ERM when seminal event occurred

· Desire was to stop firefighting and start prevention

· Intuit ERM Core Principles

· Enterprise-wide risk framework

· Risk assessment is ongoing

· Focus on most significant risks

· Ownership and accountability

· Measure and monitor performance

ERM Maturity Model

Benefits of Measuring Performance in

ERM Models

· Key Performance Indicators (KPI)

· Based on business objectives

· Quantitative and qualitative KPI

· Leading and lagging indicators

· Input, process, and output indicators

· KPIs must be

· Tangible

· Flexible

· Standardized

· Outcome or objective focused

ERM Performance Measurement and

Reporting

· First evolution - ERM process adoption

· Second evolution – Risk Mitigation Process Management

· Third Evolution – Multidimensional Risk Management Performance Measurement

ERM Process Adoption

Risk Mitigation Process Management

Multidimensional Risk Management

Performance Measurement

Conclusion

· At Intuit, risk management is everyone’s responsibility

· ERM must be a core business competency

· Coordination is a key to success

· Recognizes

· Upside opportunity

· Downside risk

· ERM process is regularly audited

· ERM is an integral part of Intuit’s operating model