Enterprise Risk Management discussion

Enterprise Risk Management ITS 835

Dr. Ronald Menold [email protected]

Chapter 12 Measuring Performance at Intuit

ITS 835

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 – 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 Heat Map

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

Chapter 12 Measuring Performance at Intuit

ITS 835