Introduction to Enterprise Risk Managment

• Types of Risk• Impact of Risk• ERM

– Importance of ERM– ERM Options– Risk Profiles & Portfolios– ERM Valuation

• Credit Crisis Discussion

Types of Risk & Strategies

• Risks– Strategic– Compliance – Financial– Operational

• Strategies– Mitigation– Acceptance– Transfer– Avoidance

Driving Forces of ERM

• Governance– Reactive vs. Proactive

• Strategic– Competitive Advantage

• Improve Performance – Operational

ERM Software Solutions

• COSO Framework• Software

– Industry and Needs– Company Size

• Oracle vs. Qumas

• Consulting & Implementation– Resources Available (Time & Money)

• Protiviti• PwC

– Advantages and Disadvantages

Implementation

• As Effective as the People & Data– Junk in, Junk out

• Managerial Support

• Realistic Expectations

• Customer Service

• Ease of Software Use

ERM Valuation

• Cost of Compliance• ROI vs. NPV• Intangibles

– True cost of risk?• Cost of failure

– Upside to Risk• Benefit in new opportunities identified

• IT as an Asset– Portfolio view

Credit Crisis

• Banks Succesful at Operational & Compliance– Role of Financial Reporting - FAS 157 FMV– Role of Strategic Risk Analysis

• Over exposed on a portfolio level

• Goldman vs. Lehman

• Can Government truly affordably regulate strategic risk in any way?