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Enterprise Risk Management Implementation

Enterprise Risk Management Implementation. DelCreo, Inc. 1-866-DELCREO. Potential ERM Benefits. Satisfies SOX and COSO requirements keeping the SEC , other regulators & investors happy.

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Enterprise Risk Management Implementation

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  1. Enterprise Risk ManagementImplementation DelCreo, Inc. 1-866-DELCREO

  2. Potential ERM Benefits Satisfies SOX and COSO requirements keeping the SEC, other regulators & investors happy Establishes a rational basis for allocating capital and prioritizing investments. thus maximizing ROE Improves Executive focus on the risks that have the greatest likelihood and potential to impact to stakeholder interests. BENEFITS Reduces the cost of capital and increases shareholder value Provides for more consistent risk taking across the organization Enables the rating agencies to more rationally rate debt and equity Reduces the cost of D&O insurance because of enhanced corporate governance Reduces the risk of shareholder lawsuits because transparency & disclosure is enhanced

  3. ERM Framework Business Objectives/ Risk Drivers Strategy Capability Value Drivers • Organization • Enterprise Risk • Committee • CRO or ERM • Manager Risk Functions Internal Audit Risk Mgmt BCP ERM IT Security Legal • Culture • Knowledge Mgmt • Metrics • Training • Communication • Regulatory • Compliance • Risks • Strategic • Operational • Stakeholder • Financial • Intangible EH&S Risk Management Process Risk Strategy & Appetite • Risk Strategy • Appetite • Prioritize • Treatment • Approach • Grow • Revenue • Tools • RiskWeb • Early Warning • System • Assessment and • Quantification tools Assess Risk • Program • Strategy • Develop • Deploy • Continuously • Improve Control Cost • Capability • Functions • Process • Organization • Culture • Tools • Enterprise- • Wide Integration • Risk Attributes • Enterprise-wide • Integration • Strategic Planning • Programs/PMO • Processes • Functions Treat Risk Monitor & Report Allocation of Capital • Risk Attributes • Lifecycle • Individual • Portfolio • Qualitative • Quantitative

  4. Practical Application: Hewlett-Packard ERM Transformation Traditional Transformation World-Class • Coordination among risk functions to increase risk coverage and decrease cost • Enable business initiatives to address risk issues quickly, decreasing product time-to-market • Alignment with business strategies, objectives and decision making-processes • Consistent organization-wide processes • World-class risk management tools • Focus on risks that have the greatest potential impact on stakeholder value Legal EHS Global RM Internal Audit IT Security IT Security ERM BCP EHS Internal Audit Legal PhysicalSecurity PhysicalSecurity Insurance Legal BCP Risk Strategy And Framework Risk Risk Management Tools Risk RM Process Risk 1 Risk Risk Revenue Assess Risk Risk Risk 2 Knowledge Sources Risk Risk Risk 3 Treat Risk Risk 4 Assurance Monitor & Report RiskWeb Risk 5 Risk 6 Cost Risk Management Process Metrics and Reporting Source: Hewlett-Packard – Used with permission

  5. Risk Appetite

  6. Implementation Plan

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