DBCF Virtual Symposium

10/15/2020

ENTERPRISE RISK MANAGEMENT – KEY TOPICS AND TRENDS

A key area of focus (and an area with opportunity for improvement) within large financial institutions is enterprise resilience. Enterprise resilience has come into focus given recent uncertainty and change in operational resilience with the progression of COVID-19.

Enterprise Resilience

1 Identify Critical Business Services Establish Front to Back Mapping of Business Services 3 Understand Economic Impact and Establish Impact Tolerance

Industry/Business Context

External Factors

Identify Risks and Opportunities

2

Make Risk- Informed Decisions

Assessand Quantify Impacts

Monitor and Report

ERM Enablers

Methodologies, Data and Tools

Identify

Quantify

Decide

Monitor

ERM Process Steps Integrated into Strategy Setting and Performance Management

Strategy and Business Execution

4

Implement Appropriate Governance

Business Planning and Forecasting

Evaluation of Strategic Options

5 Test and Improve

Risk Governance

Risk Appetite

Risk Culture

ERM Pillars

6

Internal Factors

Continue to Evolve Foundational Elements

Expectations, Needs and Constraints

© 2020 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners.

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ENTERPRISE RISK MANAGEMENT – KEY TOPICS AND TRENDS

Regulatory Alignment

Understanding and aligning with ERM principles and requirements should be a focus when building and evaluating the ERM program.

Supervisory guidance provides principles and key elements needed for establishing a strong risk management program

Industry/Business Context

External Factors

Identify Risks and Opportunities

Make Risk- Informed Decisions

Assessand Quantify Impacts

Monitor and Report

ERM Enablers

Methodologies, Data and Tools

• Board and senior management oversight • Policies, procedures, and limits/boundaries • Risk monitoring and technology to support • Internal controls • Enhanced reporting to the board and senior management for larger, more complex institutions

Identify

Quantify

Decide

Monitor

ERM Process Steps Integrated into Strategy Setting and Performance Management

Strategy and Business Execution

Business Planning and Forecasting

Evaluation of Strategic Options

Risk Governance

Risk Appetite

Risk Culture

ERM Pillars

Internal Factors

Expectations, Needs and Constraints

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© 2020 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners.

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