SLIDE 1
Launching Enterprise Risk Management in Your Agency NCHRP 20-24 (105)
Defining ERM and How It Benefits an Executive
Gordon Proctor
Launching Enterprise Risk Management in Your Agency NCHRP 20-24 (105)
Defining ERM and How It Benefits an Executive Gordon Proctor - - PowerPoint PPT Presentation
Defining ERM and How It Benefits an Executive Gordon Proctor - - PowerPoint PPT Presentation
Defining ERM and How It Benefits an Executive Gordon Proctor Launching Enterprise Risk Management in Your Agency NCHRP 20-24 (105) Why Manage Risks? Launching Enterprise Risk Management in Your Agency NCHRP 20-24 (105) What is the
SLIDE 2
SLIDE 3
Launching Enterprise Risk Management in Your Agency NCHRP 20-24 (105)
What is the Performance Link?
- As the emphasis on
performance has grown, so has the emphasis on managing risk to the performance
- bjectives
- What are the risk to
performance
- bjectives?
SLIDE 4
Launching Enterprise Risk Management in Your Agency NCHRP 20-24 (105)
ERM Complements Performance
- Asset and
performance management drive performance
- Risk management is
an enabler
- It identifies, mitigates
uncertainty to
- bjectives
Asset Management Performance Management Risk Management Strategic Objectives
SLIDE 5
Launching Enterprise Risk Management in Your Agency NCHRP 20-24 (105)
What Do We Mean by Risk?
- “Risk is the positive
- r negative effects of
uncertainty or variability upon agency objectives.”
- It includes
– Uncertainty – Variability – Threats – Opportunities
SLIDE 6
Launching Enterprise Risk Management in Your Agency NCHRP 20-24 (105)
What Is Risk Management?
- “Risk management is
the cultures, processes and structures that are directed towards the effective management of potential
- pportunities and
threats.”
SLIDE 7
Launching Enterprise Risk Management in Your Agency NCHRP 20-24 (105)
From Backroom to Boardroom
- Risk management used to be a specialty area
for controlling insurance costs
- Now it is a much broader architecture for
enhancing corporate competencies
- Please don’t confuse “risk measurement” with
“risk management”
- Measurement may be highly technical
- Management is dynamic, active, simpler
SLIDE 8
Launching Enterprise Risk Management in Your Agency NCHRP 20-24 (105)
ERM: A Dynamic Process
- “The risk management process is the
systematic application of policies, procedures, and practices to the identification and management of uncertainty or variability upon achievement of agency objectives.”
- Think of dynamically “managing risks” instead
- f risk management
SLIDE 9
Launching Enterprise Risk Management in Your Agency NCHRP 20-24 (105)
Key Organizational Elements
- Base Enterprise Risk
Management in policy
- Give staff the tools
- Create ongoing
process to actively manage risks
Process Tools Policies
SLIDE 10
Launching Enterprise Risk Management in Your Agency NCHRP 20-24 (105)
Workshop Mirrors Risk Process
Establish the Context Manage Risks Identify Risks Analyze Risks Evaluate Risks Communicate and Consult Monitor and Review
- Risk guide follows
ISO’s systematic process
- It’s a plan, do,
check process
- Workshop