introduction to rm workshop presentation (dequity partners)

Your Facilitator:

Simon FranklinPartnerDequity Partners

Risk Management Seminar

Workshop & Seminar

Monday, 28 May 2012

© Copyright Dequity Partners Pty Ltd 2012

Today’s Agenda

★Introduction★Workshop Outline★Learning Outcomes★Discussion & Exercises★Recap & Questions★Follow-Up Requests

Monday, 28 May 2012


Introduction

★Background★Your Workshop Leader★Scope of Today’s Workshop★Timing of Today’s Workshop★RM Current Status★Participants Background

Monday, 28 May 2012


Workshop Outline

★Learning Outcomes★Facilitated Discussion

★ Governance Elements (pieces)★ The RM Process (steps)★ Risks & Controls (identification)★ Risk Assessment (metrics)

★Emerging Software Solutions★Hot Topics for 2011-2012★Recap & Conclusions

Monday, 28 May 2012


Learning Outcomes

★Practical Assistance & Contacts★Sources of Reference★Understand Standards★Clarify RM Process / Method★Build Awareness of Tools★Hot Topics 2011-2012★Increased Confidence★Understand Pitfalls & Shortcuts

Monday, 28 May 2012


Governance Elements

InsuranceInformationSecurity

IncidentManagement

Performance & Quality

Governance

Legal

Risk

Compliance

Internal Audit

External Audit

BusinessContinuity

DisasterRecovery

Assurance

PhysicalSecurity

Board & Management Responsibility

Monday, 28 May 2012


Wrong Approaches

★It was like it when I got here.

★If something goes wrong, blame the guy next to you.

★No one saw me do it, there's no way they can prove anything!

★Cover for me will you?

Monday, 28 May 2012


Decentralised Model

RM Coordinator

Head of Business Unit

Risk Manager

Internal Auditor Quality

Risk & AuditCommitteeCEO or MD

Board

Monday, 28 May 2012


Centralised Model

Risk Manager

Internal Auditor Quality

Risk & AuditCommitteeCEO or MD

Board

Head of Business Unit

RM Resource Pool

Monday, 28 May 2012


Structural Evolution

Model Structure & Resources

Responsibility & Process

Communication Reporting

Centralised

Matrix

Decentralised

Monday, 28 May 2012


Benefits of Evolution

★Leveraging★Efficiency★Consistency★Relationships with Business

Management★Knowledge & Skills Sharing★Administration of Systems &

Data

Monday, 28 May 2012


AS/NZS 4360:2004

1. Establish Context

2. Identify Risks

3. Analyse Risks

4. Evaluate Risks

5. Treat Risks

Monitor &

Review

Com

mun

icat

e &

Con

sult

★ Risk Management Process

Monday, 28 May 2012


Risks & Controls

★Context & Consistency★Definitions★Descriptions★Linking★Considerations★Rating★Library

Monday, 28 May 2012


Questions to Ask

★Can we reduce the risks?★Can we get rid of the risks?★How much will it cost?★Is it worthwhile?★Can one solution treat many

risks?★Should we reduce controls?★What’s it all going to cost?

Monday, 28 May 2012


Risk Assessment

★Inherent vs Residual★Likelihood (Frequency) x

Impact (Consequence)★Scale & Context (Appetite)★Roll-up & Mapping★Reporting★Key Risk Indicators

Monday, 28 May 2012


Control Assessment

★Define Controls★Identify Controls★Control Types★Control Rating★Action Planning★Control Monitoring★Control Effectiveness

Monday, 28 May 2012


Exercise 1

★Risk Analysis★15 mins to identify your:

★ Key Functions / Processes★ Key Risks★ Key Controls★ Key Actions (Gaps)★ Risk Map

Monday, 28 May 2012


Risk Management Tools

★Automated or Manual?★What are the Options?

Monday, 28 May 2012


Risk Management Tools

★Verbal & Written★Word Processors★Spreadsheets★Databases★Integrated Systems★Smart Assurance

10-15 Years

Monday, 28 May 2012


Standard Features★ AS/NZS 4360 Framework★ Risk Register (Rating)★ Data Migration Capability★ Organisation, Process or Project Structure★ Windows Based Interface★ Indicators & Measures★ Access, Security & Audit Trail★ User Training★ Upgrades & Maintenance Included★ Help Desk★ Management Reporting★ Centralised Control & Remote Use★ In-House or Remotely Managed

Monday, 28 May 2012


Understanding the Benefits

★Standardised Approach★Reduce Costs & Resources★Secure with Auditable Trail★Early Indicators (Decisions)★Automated Management

Reports & Actions★Targeted Risk & Audit Plan

Monday, 28 May 2012


Requirements Analysis

★RM Objectives★Business Considerations★Technical Preferences★User Requirements★Vendor Preferences & Probity★Cost & Budget Allocation★Implementation Timetable★Ownership & Support★Key Features & Differentiators

Monday, 28 May 2012


Readiness Assessment

★Existing Structure & Processes★Risk Context, Criteria & Rankings★Data Quality & Integrity★Indicators & Measures★Reports & Documents★Staff Awareness & Capability★Locations & Stakeholders★Technical Requirements &

Capacity★Gaps & Remedial Actions

Monday, 28 May 2012


Major Pitfalls

★Major Pitfalls:★ Unclear objectives★ Undefined scope★ Lack of Data★ Business not ready to adopt★ Tool & resource limitations★ Over reliance on 3rd Parties★ Lack of ownership★ Poor communication & training

Monday, 28 May 2012


Exercise 2

★Readiness Assessment★15 mins to map your:

★ Risk Framework Elements★ Risk Data Sources★ Risk Management Reports★ Risk Resources★ Readiness to Adopt Tool

Monday, 28 May 2012


What’s Hot in 2006?

★Anti Money Laundering★Fraud Risk Management★Software Implementation★Regulatory Reviews★Evidenced Based RM★Cost Reduction★Insurance Premium Reduction★Recruitment & Retention Pain

Monday, 28 May 2012


Recap

★Governance Elements★Risk Management Process★Risk & Control Identification★Risk & Control Assessment★Management Reporting★Emerging Tools★Hot Topics

Monday, 28 May 2012


Contacts

Simon FranklinPartner

T: +61 (2) 9258 1972E: [email protected]: http://au.linkedin.com/in/simonfranklinT: www.twitter.com/dequitypartners

www.dequitypartners.com.au

Monday, 28 May 2012

mailto:[email protected]

mailto:[email protected]

http://au.linkedin.com/in/simonfranklin

http://au.linkedin.com/in/simonfranklin

http://www.twitter.com/dequitypartners

http://www.twitter.com/dequitypartners

http://www.dequitypartners.com.au

http://www.dequitypartners.com.au