ERM Week3
ITS 835
Unit 3
Introduction
ERM Maturity Model
Benefits of Measuring Performance in ERM Models
ERM Performance Measurement and Reporting
Conclusion
ERM Maturity Model
Benefits of Measuring Performance in ERM Models
Key Performance Indicators (KPI)
Based on business objectives
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
Strategic Goals and Objectives
ERM Process Adoption
Risk Mitigation Process Management
Multidimensional Risk Management Performance Measurement
Links to Strategic Plan
Selecting and Testing Tools and Framework
Selecting and Testing Tools and Framework
Risks and Strategic Objectives
ISO 31000 Risk Management
PM2 versus ISO 31000
Proposed ERM Framework
Conclusion
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
Lessons Learned
Key success factors
Senior management buy-in
Culture of innovation
Consistency of model across goals
Resource requirements for department SMEs
Department accountability for key risks
Process of selecting and implementing framework
Takes longer than expected
No system is perfect
Do not roll out all at once
Clearly define all milestones and deliverables