ERM

ITS 835 Chapter 15

Embedding ERM into Strategic Planning at the City of Edmonton

Enterprise Risk Management

Dr. Les Stovall

Introduction

• Edmonton – Past and present ERM • Links to strategic plan and to other strategic tools • Selecting and testing tools and framework • Recommended strategic ERM approach • Lessons learned

Edmonton – Past and Present ERM

• Edmonton – Capital of Alberta, Canada • Over 800,00 population

• ERM piloted in 2005 • CORPORATE Business Risk Planning (CBRP) model

• Not fully implemented

• Based on COSO

• Adopted strategic plan • The Way Ahead

• Strategic ERM

Links to Strategic Plan

Selecting and Testing Tools and Framework

Selecting and Testing Tools and Framework

Strategic Goals and Objectives

Risks and Strategic Objectives

ISO 31000 Risk Management

PM2 versus ISO 31000

Proposed ERM Framework

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