ERM

ITS 835 Chapter 12

Measuring Performance at Intuit Enterprise Risk Management

Dr. Les Stovall

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