lataiga proctor erm, program manager · erm top-down & bottom-up approach project risk rrbs...
TRANSCRIPT
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U.S. Census Bureau
Enterprise Risk Management Program
Operationalizing ERM – A Top-down,
Bottom-Up Approach
LaTaiga Proctor
ERM, Program Manager
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The Landscape
Constitutionally mandated mission
Departmental ERM initiative
2010 Census lessons learned
Major organizational transformation
Regulatory/oversight ERM expectations
Ongoing climate of threats, risks, & opportunities
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The Value of ERM
ERM VALUE
Common Risk
Processes
Informed Decision-making
Informed Priority Setting
Visibility of Threats
& Risks
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The Evolution of ERM
Enterprise
Risk Management
Program
Risk Management
Project
Risk Management
Ad hoc
Risk Management
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ERM Implementation Playbook
Establish “Tone at the Top”
Develop a Strategy
Identify Roles & Responsibilities
Build Processes & Capabilities
Implement Processes & Capabilities
Conduct Awareness & Training
Assess and Mature Processes & Capabilities
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Engage Executive Management
Identify a Chief Risk Officer (CRO)
Create a vision, goals & objectives
Establish “Tone at the Top”
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Define ERM scope and parameters
Develop an ERM framework
Create an ERM Plan
Develop a Strategy
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Define ERM governance
Develop an oversight structure
Assign responsibilities at the appropriate level
Identify Roles & Responsibilities
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ERM Top-down & Bottom-up Approach
Project Risk RRBs
ENTERPRISE RISK REVIEW BOARD
Portfolio Mgmt.
Governing Boards
TOP
-DO
WN
BO
TTO
M -
UP
Program Risk RRBs
Operations Risks (Business & IT)
The
Ch
ief R
isk Office
r ove
rsee
s the
ERM
Pro
gram
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Develop uniform risk mgmt. processes
Develop risk mgmt. guidance, training & templates
Select a risk mgmt. tool to support the process
Build Processes & Capabilities
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ERM Tool
Level 3 – Projects
Level 2 – Major Programs
Level 1 – Enterprise
Level 4 – Sub-Projects
The ERM Tool enables a portfolio view of risks
Level 1 risks are managed by the Enterprise Risk Review Board
Level 2 risks are the Census Bureau’s Major Programs
Level 3 are risks related to level 2
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ERM Portfolio View of Risks
Enterprise
Risks
Business Line 1
Program 1
Sub-Project
Risks
Sub-Project
Risks
Sub-Project
Risks
Program 2
Business Line 2
Program 3 Program 4
2020 R&T
Risks
Sub-Project
Risks
Business Line3 Business Line 4
Level 3 – Projects
Level 2 – Major Programs
Level 1 – Enterprise
Level 4 – Sub-Projects
ERM Risk Categories enable visibility of common risks across the enterprise: Strategic Operational Safety & Security Compliance / Regulatory Financial Reputation Political Fraud COOP & Disaster Recovery Technology
The ERM Tool enables a portfolio view of risks w/drill down capability.
Key
1.1 4.1
1.2
1.3
4.2
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Implement the tool and processes
Collect, integrate, analyze and SHARE risk data
Address barriers
Implement Processes & Capabilities
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Working Together
Sponsored by the COO
Plan & Policy available to all
Governance is hierarchal
Managed at optimal levels
Risk identification is positive
Risk management is a performance criteria
Employees understand risk management
Tools are transparent, consistent & user friendly
Ownership, reporting & elevation requirements are clear
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Enterprise Risk Review Board
ERRB
COO & Execs
Reviews risk
portfolio
Influences use of ERM
processes
Monitors significant
risks
Includes risks in
decision making
Uses risks in
planning & prioritizing
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ERM Risk Tool
ERM Risk Tool provides: Standardized risk registers Standardized drill down reports,
including: • Risk Matrix • Risk by Category • Active Risks by Rating • Top Risks Report
Summary reports for transparency of subordinate programs/projects
Drill down capability
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Create a Policy
Conduct training & awareness
Incentivize identification of risks & opportunities
Conduct Awareness & Training
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Develop a ERM process maturity assessment tool
Assess & baseline the ERM process maturity level
Assess & mature risk processes and capabilities cyclically
Assess and Mature Processes & Capabilities
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Assessing ERM Maturity
I. Fundamentals of Risk Mgmt.
II. Executive Leadership
III. Integration into Culture
IV. Application of Principles
V. Integration into Strategic Operations
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ERM Maturity Rating
Beginner Intermediate
Advanced
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ERM Implementation Timeline
Year 5 – FY16 Strengthen Operations Risk Management
Year 1 Year 2 Year 3 Year 4
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ERM and the Office of the Inspector General (OIG)
A chartered Oversight Engagement Team centralizes and shares departmental, OIG, General Accountability Office, and Congressional authorizing and appropriations committee activities
OIG activities facilitate identification of emerging issues and risks & potential response strategies
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Implementation Challenges
Resistance to change
Defining the scope & structure
Communication
Integration
Fear of oversight
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Recommendations
Establish ERM at the highest level
Engage Leadership
Treat ERM as holistic & set the tone
Redefine risk identification as positive
Standardize risk processes
Be patient
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Contact Information
LaTaiga Proctor, MS, PMP Enterprise Risk Management Program Manager US Census Bureau [email protected] 301-763-9256