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ITS835_Spring_1G_2019_Week3.pptxITS 835 Enterprise Risk Management
Week 3: Performance and strategic planning
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Week 3 – ITS 835
Chapter 12- Measuring Performance at Intuit: A Value-Added Component in ERM Programs
Chapter 15 - Embedding ERM into Strategic Planning at the City of Edmonton”
Please complete the following this week
Participate in discussions
Risk Management Assignment
Chapter 12
Intuit maker of Quicken, Quickbooks and Turbo Tax
Exposed to a wide range of risks from customers and operational
Balancing of risks and opportunities to achieve optimal business results
ERM at Intuit
Used to be on an ad hoc basis
In 2009 Intuit established the foundation of ERM program
Focused on sustainable risk management capability
ERM Core Principles at Intuit
A common risk framework enterprise-wide
Assessing risks on an ongoing basis
Focusing on the most significant risks
Clearly define ownership and accountability of risk management
Performance measurement and monitoring
ERM Maturity Model
Measuring performance in ERM programs
Key performance indicators
Qualitative and quantitative
Leading and lagging
Input, process and output
Four characteristics
Tangible
Flexible
Standardized
Outcome or objective focused
Examples of KPI
Analyzing Performance Data
Failure mode and effects analysis (FMEA)
Regression Analysis
Pareto analysis
Root cause analysis
Scenario analysis
Benchmarking
Threat analysis
Intuits Approach: Risk Impact and Likelihood
Top Risk Status Report
Executive Dashboard
Intuit ERM Progress
Conclusions
Value of performance measurement as a component of ERM programs
Risk Management is the responsibility of everyone
Core business competency
Rigorous and coordinated approach to assessing and responding to risks
Performance is reviewed regularly
Integral part of the company’s operating model
Chapter 15
City of Edmonton
Process used by the city of Edmonton in Alberta, Canada to establish strategic risk model
Framework based on ISO 31000 risk management standard
Weigh factors common to any large organization as well as specific to governments in general and municipalities in particular
ERM City of Edmonton
Focus at the strategic risk
New Strategic Plan , The Way Ahead in 2008
Hired Enterprise Risk Management Program Manager in 2012
ERM framework – Corporate Business Risk Planning (CBRP) model
ERM Strategy
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Risk Scorecard - Pm2
Risk Score Card Process Diagram
Step3- Score Risk Elements
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Recommended Strategic ERM Model
After reviewing the results, consultation with subject matter experts
It was received that the ISO 31000 framework held the key to a simpler risk mitigation and review process
Mitigation focused at the risk level and not strategic level
Final ERM model consisted of four steps based on ISO 31000
Lessons Learned
Key Success Factors
Buy in by senior management
Culture of innovation
Consistency of models across the Ways
Resource Requirements on Department Subject Matter Experts
Department Accountability for Key Risks
Process of Selecting and Implementing a framework
Submissions week 3
Participate in week 3 discussion
Complete Risk Management Assignment in the week 3 content folder in blackboard by Monday Jan 28 end of day
