DBCF Virtual Symposium

10/15/2020

ENTERPRISE RISK MANAGEMENT – KEY TOPICS AND TRENDS

Board and Stakeholder Reporting Reporting to stakeholders is critical for communicating the risks across the institution.

Effective reporting to stakeholders will include:

Industry/Business Context

External Factors

1 Critical and Emerging Risks

Identify Risks and Opportunities

Make Risk- Informed Decisions

Assessand Quantify Impacts

Monitor and Report

ERM Enablers

Methodologies, Data and Tools

2

Prioritization of Risks

Identify

Quantify

Decide

Monitor

ERM Process Steps Integrated into Strategy Setting and Performance Management

Strategy and Business Execution

3 Impact to Key Business Objectives

Business Planning and Forecasting

Evaluation of Strategic Options

4

Alignment to Risk Appetite

Risk Governance

Risk Appetite

Risk Culture

ERM Pillars

Internal Factors

5 External and Internal Context

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

An effective ERM program considers not just external factors, but also internal. Risk Culture is a key internal factor and a pillar that shapes the institutions’ ERM program.

Risk Culture

Industry/Business Context

Risk culture is the “set of encouraged and acceptable behaviors, discussions, decisions and attitudes toward taking and managing risk within an institution. 1 ”

External Factors

Identify Risks and Opportunities

Make Risk- Informed Decisions

Assessand Quantify Impacts

Monitor and Report

Culture

ERM Enablers

Methodologies, Data and Tools

Performance Management

Risk Management

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

Business Strategy

Risk Appetite

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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