Enterprise Risk Management Program Overview 1 Enterprise Risk - PowerPoint PPT Presentation

Enterprise Risk Management Program Overview 1

Enterprise Risk Management: An Overview ERM connects existing risk Strategic Risks management efforts being carried out by individual Reputational IT Risks Risks divisions/units by providing a common language for risk, risk appetite and risk management strategies Strategic Goals and across the corporation Objectives Operational Legal & or Program Compliance Risks Risks Business Financial Environment Risks Risks Strategic and Business Planning 2

Value of Enterprise Risk Management • Helps TCH proactively identify risks to ensure they are properly assessed and considered during the business planning process • Promotes better understanding of how risks may be inter- related and affect TCH on a broader scale • Enterprise-level view of risk adds rigor to strategic and divisional planning process • In alignment with strategic and divisional planning, assists TCH to allocate resources to mitigate most critical risks 3

Enterprise Risk Management Process Risk Assessment  How likely is the risk to Risk Response occur?  What will reduce the risk?  What is the potential  What are our “just in case” impact of the risk to the contingency actions? corporation?  Who is the risk owner?  How effective are we at w v controlling the risk? Risk Assessment Risk Response Strategic Goals & Risk Identification Objectives  What can go wrong? x u  What are the root Risk Monitoring & causes? Risk Identification  What is impacted? Reporting Risk Monitoring & Reporting  What controls are in  Who wants to know and when place currently to do they want to know? reduce risk?  How are we going to communicate it?  How do we ensure policies and controls are followed? Enterprise Risk Management Framework 4

Enterprise Risk Management – Current Status at TCHC • Initiative is led by the Legal – Compliance unit and the Risk Management & Insurance unit • Risk Assessment Workshop held Q3 of 2016, building upon work started in 2015 • Objectives and tactics in divisional plans help with proactive mitigation to address these risks • Process is iterative and will be ongoing 5

Enterprise Risk Management - Top 10 Strategic Risks Capital Funding Operational Funding Operating Practices IT Systems Brand/Reputation Mandate Records Management Change Management Stakeholder Relations Data Standardization • Risk owners identified responsible for monitoring, reviewing and updating top risks 6

Enterprise Risk Management – Next Steps • Draft Enterprise Risk Policy is being reviewed internally • Work with Risk owners to develop risk mitigation workplans to ensure mitigation efforts are incorporated into divisional planning process • Work with Strategic Planning and Stakeholder Relations and Audit to develop aligned reporting tool/report to monitor compliance 7