ERM for the
Non-Risk Manager
Presented by:
Lisanne Sison
Director, ERM
Bickmore
What is ERM?
“Enterprise Risk Management (ERM) is “a
process, effected by an entity’s board of
directors, management and other personnel,
applied in strategy-setting and across the
enterprise, designed to identify potential
events that may affect the entity, and manage
risk to be within its risk appetite, to provide
reasonable assurance regarding the
achievement of entity objectives.”
- Committee on Sponsoring Organizations
Enterprise Risk Management Integrated Framework, 2004
What is ERM?
“[ERM is] a structured, consistent and
continuous process across the whole
organization for identifying, assessing,
deciding on responses to and reporting on
opportunities and threats that affect the
achievement of it’s objectives.”
- The IIA – UK and Ireland
What is ERM?
ERM is an integrated systematic process of
identifying major risk to achieving the specific
goals and objectives of the organization. These
risks should be analyzed by likelihood and impact
and mitigated to an acceptable level of risk.
- The IIA Research Foundation
Contrasting GRC and ERM, Perceptions and Practices Among Internal Auditors, 2013
Einstein’s* explanation
ERM is a process that helps manage diverse
organizational risks and supports successful
achievement of objectives
ERM Life Cycle
Goal
Culture setting
Internal
Environment
Objective
Setting
Evaluate
Performance
Implement
Confirm
Evaluate next
Identify and options steps
prioritize risks
Event
Identification
Risk
Assessment
Risk
Response
Control
Activities
Information &
Communication
Monitoring
Start with Why…
Simon Sinek’s Golden Circle
http://www.youtube.com/watch?v=_I-_0cnj_xQ
Internal
Environment
Objective
Setting
Event
Identification
Risk
Assessment
Risk
Response
Control
Activities
Information &
Communication
Monitoring
Opportunity Cost
• Every decision can be weighed in terms of
costs and benefits
• Decisions can have multiple options
• Compare both costs and benefits
• Only realize the benefits of one
Internal
Environment
Objective
Setting
Event
Identification
Risk
Assessment
Risk
Response
Control
Activities
Information &
Communication
Monitoring
Failure Mode Effect Analysis
• Review a process for what can go wrong
• Assess and prioritize
• Identification factor (Likelihood error will
be caught)
Internal
Environment
Objective
Setting
Event
Identification
Risk
Assessment
Risk
Response
Control
Activities
Information &
Communication
Monitoring
Tippy Tap
• http://youtu.be/Qdpd3
roZjYw
Internal
Environment
Objective
Setting
Event
Identification
Risk
Assessment
Risk
Response
Control
Activities
Information &
Communication
Monitoring
ADKAR
Internal
Environment
Objective
Setting
Event
Identification
Risk
Assessment
Risk
Response
Control
Activities
Information &
Communication
Monitoring
Plan Do Check Act
Internal
Environment
Objective
Setting
Event
Identification
Risk
Assessment
Risk
Response
Control
Activities
Information &
Communication
Monitoring
Six Sigma (cont’d)
• A clear focus on achieving measurable
and quantifiable financial returns
• Increased emphasis on strong and
passionate management leadership and
support
• Clear commitment to making decisions
informed by data, rather than
assumptions
• Developed by Motorola in 1986
Six Sigma
Sharpen the saw
Covey’s 7 habits
Be
Proactive
Internal
Environment
Seek first to
Begin
understand,
with the
then be
end in understood
mind
Objective
Setting
Event
Identification
Risk
Assessment
Synergize
Put first
Think things
win-win first
Risk
Response
1989!!!
Control
Activities
Information &
Communication
Monitoring
Lean
• Problem: Overtime every day because
people were coming in 30 min before
their shift to re-organize their ambulance
the way they like it
• Solution: Standardized ambulance set up
• Communication and training to enable
the change
Case Studies
Case Study – Raley’s
Non-Risk Manager ERM Checklist
• What are you trying to accomplish?
• What are the realities/barriers?
• What needs to be addressed immediately,
soon, later, or never?
• What is the best, most efficient way to
overcome this challenge?
• How do we prepare people to accept this
change?
• How will we measure success?
©Lisanne Sison, Bickmore 2014