Measuring and Selecting an ERM Framework

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ITS835Chapter12.docx

ITS 835 Chapter 12

Measuring Performance at Intuit Enterprise Risk Management page1image13773312 page1image13773504

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

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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

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Risk Mitigation Process Management

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Multidimensional Risk Management Performance Measurement

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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