Enterprise Risk Management

The turmoil in the world is continuing – with increasing public unrest fluctuating oil prices, natural disasters of a scale thought unimaginable, volatile stock markets and world economic uncertainty.

In this time of global uncertainty how do you steer a course through these difficult waters?

Thankfully many organizations have realized that an Enterprise Risk Management (ERM) approach was needed. This has ensured that risks that were previously managed in isolation can be aggregated and prioritized across the entire business.

Enterprise Risk Management (ERM) is a methodology that looks at risk management strategically from the perspective of the entire firm or organization. It is a top-down strategy that aims to identify, assess, and prepare for potential losses, dangers, hazards, and other potentials for harm that may interfere with an organization's operations and objectives and/or lead to losses.

ERM takes a holistic approach and calls for management-level decision-making that may not necessarily make sense for an individual business unit or segment. Thus, instead of each business unit being responsible for its own risk management, firm-wide surveillance is given precedence.

Participants will be provided with an opportunity to:

• Have greater awareness about the risks facing the organization and the ability to respond effectively.
• Have enhanced confidence about the achievement of strategic objectives.
• Be aware of improved compliance with legal, regulatory and reporting requirements.
• Link risk clearly wit decision making.
• Increased efficiency and effectiveness of operations.
• Take Enterprise Risk Management (ERM) to a strategic level.
• Learn lessons from global risk events.
• Determine a clear risk attitude and appetite process.
• Identify the key emerging risks.

• Chief Risk Officers.
• Risk Managers.
• Managers and Directors responsible for the risk management function or process.
• Heads of Internal Audit.
• Heads of Assurance Functions.
• Entrepreneurs.
• Financial Analysts.
• Risk Analyst.
• Project Managers.
• Bankers.
• Accountants.
• Business Managers.
• Marketing Managers.

Course Outline:
Day 1

Module 1, 9am-10.30am
1.1 Overview of Risk Management
What is Risk?
Why Do We Need Risk Management?
What is IS) 31000?
How Do We Manage Risk?
1.2 Risk Management Structure
Framework of Risk Management Department
Define Risk Reporting Structure
What is Matured Risk Based Organization?
Risk Management Process

10.30am-10.45am, Break

Module 2, 10.45am-12.45pm

Exploring Global Enterprise Risk Management (ERM) Scenarios
In this interactive session, delegates will explore global risk scenarios and then discuss the implications for their organizations
Risk Attitude
The need to define risk as the need to get things right – not what can go wrong
‘Ring fencing’ risk exposure - never allow one part of the business to impact the whole organization
Determining and communicating your attitude to risk and your required risk culture to managers and stakeholders
Recognizing that reputation is both your biggest asset and the biggest risk you face – and one you cannot insure
Not waiting until you are required to provide evidence of effective risk management by regulators or legislation – this will usually be too late.

12.45pm-1.45pm, Lunch

Module 3, 1.45pm-3.30pm
The Enterprise Risk Management (ERM) Roadmap
Review the Current ERM Environment
Conduct Gap Analysis
Conduct management workshops and agree priorities
Develop ERM roadmap of priorities for implementation
3.30pm-3.45pm, Break
Module 4, 3.45pm-5pm
Risk Measurement Methods
The need for quantitative risk analysis
Structured Interviews
Risk workshops
Delphi (expert analysis)
Ishikawa diagrams (fishbone analysis)
Failure mode and effect analysis (FMEA)
Scenario planning
Root cause analysis
Monte Carlo analysis
Bayesian networks
The pros and cons of the various methods

Day 2
Module 5, 9am-10.30am

Risk Workshops
The power of workshops
Techniques for successful risk workshops
The need to involve peer groups
Establishing a risk workshop
Facilitation techniques
10.30am-10.45am, Break
Module 6, 10.45am-12.45pm
Failure Mode and Root Cause Analysis
Evaluation of potential failure modes for processes
The likely effect on outcomes and/or product performance
Risk reduction measures to eliminate, reduce or control the potential failures
Impact, probability and detection criteria
Determination of RPN (risk priority number)
Worked example of FMEA

12.45pm-1.45pm, Lunch

Module 7, 1.45pm-3.30pm
7.1 Fault Tree Analysis
Systematic method of System Analysis
Examines the system top down
Used to investigate potential faults
Quantify contribution to system unreliability
Worked example
7.2 The Risk Register Challenges
Why the Enterprise Risk Management (ERM) process often fails to engage management
Risks recorded are much too general
Causes and effects are confused with risks
Only residual risk is concentrated on
Various different methods are used for scoring risks
Benefits are difficult to determine
The register is spread sheet based
The process is far too complex
The Risk register solution
3.30pm-3.45pm, Break

Module 8, 3.45pm-5pm
8.1 Enterprise Risk Management (ERM) Tips for Success
Use a risk assessment framework to assess your risk maturity and prepare a plan to enhance this maturity (if required)

Adopt ISO31000 (the International risk standard) and apply the principles across the business
Only use one risk matrix for the Business – every function should not develop their own
Ensure that you have common risk terminology and communicate it widely
Recognize risks may have multiple scenarios e.g. loss of key personnel (how many, in which area, etc)

Set meaningful Key risk indicators (KRI’s) to warn you before risks materialize
Prepare a graphical or tabular record of key risk for the Board

Recognize that understanding risk is the key to successful corporate governance
Arrange a reputation risk workshop for senior management
Get the whole risk process benchmarked
8.2 Risk Appetite and Risk Tolerance

What is risk appetite?The difference between risk appetite and risk tolerance
Defining risk limits
Risk profiling
Developing risk appetite statements
Examples of risk appetite statements

Participants should have some or previous experience in the risk arena, with Internal Audit background. Participants should have a good educational standard and/or a professional qualification but no advance preparation is required.

The delivery method will be through lectures, discussions with exercises and role-plays to simulate audit scenarios and situations that assurance professionals will encounter.

Ms Suchitra Mahendraraj is professionally qualified accountant. She is a Finance consultant turned trainer. Working as a consultant in training for the past 16 years, she has contributed to the success of many projects and programmes.

She is a professionally qualified accountant. She is also a Fellow of the Chartered Association of Certified Accountants (FCCA), UK, an Associate of the Chartered Institute of Management Accountants (CGMA), UK, and Chartered Accountant (CA) of the Malaysian Institute of Accountants.

During her working career, she has been involved in areas such as business advisory, audit, human resources, finance and administration and training. She has wide and extensive knowledge in various industries.

Suchitra’s training style is refreshing and energetic, relaxing her audiences whilst inspiring them to take action. She is a lively, energetic & engaging facilitator who will compel you to think of your organisational and personal growth stirring creativity and motivation to act.

She approaches learning from an integrated perspective, dedicates herself to helping organisations manage the human side of change in ways that produce powerful, positive and sustainable results.

She has personally trained many organisations ranging from SMIs to large MNCs covering areas ranging from Finance and Finance related, Leadership, Professional Development and Teambuilding.

Certificate

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