Measuring and Selecting an ERM Framework
ITS 835 Chapter 12
Measuring Performance at Intuit Enterprise Risk Management
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