DBCF Virtual Symposium

10/15/2020

ENTERPRISE RISK MANAGEMENT – KEY TOPICS AND TRENDS

Updating the Lines of Defense?

Shifting views on the roles of the three lines of defense may alter the way the ERM program is implemented at financial institutions.

Industry/Business Context

What to expect when assessing the ERM program at large financial institutions

External Factors

Identify Risks and Opportunities

Make Risk- Informed Decisions

Assessand Quantify Impacts

Monitor and Report

ERM Enablers

Methodologies, Data and Tools

Identify

Quantify

Decide

Monitor

Trends in ERM roles across the lines of defense

ERM Process Steps Integrated into Strategy Setting and Performance Management

Strategy and Business Execution

Business Planning and Forecasting

Evaluation of Strategic Options

Institute of Internal Auditors (IIA) updated guidance focusing on collaboration between key players

Risk Governance

Risk Appetite

Risk Culture

ERM Pillars

Internal Factors

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

External Reporting Consistency

The institution should develop a consistent message across its external reporting on risks.

Industry/Business Context

Institutions can benefit from mapping their disclosed risks to the key elements of their ERM program.

External Factors

Identify Risks and Opportunities

Make Risk- Informed Decisions

Assessand Quantify Impacts

Monitor and Report

ERM Enablers

Methodologies, Data and Tools

Identify

Quantify

Decide

Monitor

There may be variation across the risks reported in an institution’s 10-K, SOX reporting, and other external reports.

ERM Process Steps Integrated into Strategy Setting and Performance Management

Strategy and Business Execution

Business Planning and Forecasting

Evaluation of Strategic Options

Risk reporting may focus on identifying the risks, but not how the institution addresses those risks.

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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