presentation slides

Report
RIMS Risk Maturity Model (RMM)
Webinar with RIMS Chapter Officers
A Mutual Opportunity
Copyright 2012-2013 Risk and Insurance Management Society, Inc.
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A Virtual Presentation for Your Chapter
• Randy Besse – Saskatchewan Chapter
• Carol Fox – RIMS
• Steven Minsky – LogicManager
Copyright 2012-2013 Risk and Insurance Management Society, Inc.
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Answering the basic questions
Who
• Carol Fox and Steve Minsky
What
• Provide an educational forum for your chapter members
When
• Scheduled to meet your chapter needs
Where
• Wherever we can connect through the internet
How
• Using RIMS Adobe Connect platform
Why
• To provide a unique, sustainable, and practical experience
Copyright 2012-2013 Risk and Insurance Management Society, Inc.
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A “Win-Win” Proposition
Chapter Wins
RIMS Wins
•
•
•
•
•
• Greater use of the RIMS Risk
Maturity Model
• Encourage “friendly competition”
through regional benchmarking
• Build more mature risk
management practices overall
• Delivers on its mission to make
your organizations more
successful
“Ready” presentation
Delivered virtually
Something different
Build chapter camaraderie
Build more mature risk
management practices within the
chapter
• Encourage continuing dialogue
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Poll: Have you taken the RIMS RMM Assessment?
o
o
o
o
o
Yes, multiple times
Yes, one time
Started once, but did not finish
No, never
Never heard of it before today
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Delivering Value
through RIMS Risk Maturity Model
for Enterprise Risk Management
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Agenda
 The Landscape
 The Plan
 Taking the RMM Assessment
 Using the Output
 A Proposition
 Questions
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We can't solve problems by using the same kind of thinking we used when
we created them.
Albert Einstein
THE LANDSCAPE
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The Risk Professional:
Balancing Risk and Reward
Used with permission per RIMS license agreement with The Official Dilbert Store
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The Evolving Role of the Risk Professional
Source: RIMS and The IIA Risk Management and Audit: Forging a Collaborative Alliance
Copyright 2012-2013 Risk and Insurance Management Society, Inc.
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What are the Implications for Risk
Management?
Expanding organizational risk management competencies
Proactive
• Objectives Focused
• Predictive Indicators
• Foresight
• Strategic
• Creates and captures
value
Reactive
• Event Focused
• Post Action Response
• After-thought
• Transactional
• Protects Value
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Any fool can know. The point is to understand.
Albert Einstein
THE PLAN
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What Are Your Top Risks to Successful ERM?
What stands in the way
of successful ERM at
your organization?
“Whirlwind”
Execution
Ability
Goal
Confusion
Multiple
Priorities
Disabling
Culture
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You Need a Plan!
Shape the risk principles and
policies of the company, track the
capital risk capacity of the
company, define who is
responsible for managing the
specific risks within the
organization, and provide a
framework for judging the
effectiveness of risk-taking
Make sure that there is a risk
management system in place
in each business that includes
effective risk-control
mechanisms as well as
information systems that flow
up to senior management
What
else?
Quote Sources: Spencer Stuart
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Why Use the RIMS Risk Maturity Model?
 Bridges the gap between theory and practice
 Guide to incremental improvement over time
 Measurable ERM value, based on priorities
 Addresses rating agency criteria on key attribute areas
 Can be used to build an ERM blueprint
 Creates value for the organization
 Career development tool
 Breadth of use
 Over 2,000 organizations
 Across multiple industries
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RIMS Risk Maturity Model for ERM
The Seven Attributes
ERM-based approach
• Executive support within the corporate culture
ERM process management
• Integration into business processes
Risk appetite management
• Accountability within leadership and policy to guide decision-making
Root cause discipline
• Linking outcomes with their sources
Uncovering risks
• Analyzing and documenting risks and opportunities
Performance management
Business resiliency and
sustainability
• Executing vision, mission and strategy utilizing risk metrics
• Integration into operational planning and execution
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Common Elements from RIMS Review
RIMS RMM
ISO 31000
OCEG
BS 31100
COSO
FERMA
SOLVENCY II
ERM-based
Approach
X
X
X
X
X
X
Process
Management
X
X
X
X
X
X
Risk Appetite
Management
X
X
X
X
X
X
Root Cause
Discipline
X
Uncovering
Risks
X
Performance
Management
X
Business
Resiliency and
Sustainability
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Source: RIMS Executive Report: An Overview of Widely Used Risk Management Standards and Guidelines, 2011
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Elements from RIMS RMM
determine Your RMM Score
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Leverage risk-reward tradeoffs
Silo’d
Activities
Goals
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Leverage risk-reward tradeoffs
Activities
Goals
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You never fail until you stop trying.
Albert Einstein
TAKING THE RMM ASSESSMENT
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Begin from
RIMS website
RIMS Risk Maturity Model
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Getting started is easy!
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Completing the RMM assessment
ERM assessment (example)
Factor: Executive ERM support
Indicators
RIMS RMM
indicators
provide context
for review
Evaluation criteria
Effectiveness
Select each
Proactivity
of the 25
Factors
Coverage
Partially Ad Hoc
Somewhat Reactive
Select a score for each of the 3
evaluation criteria
Partially Uncertain
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RIMS Risk Maturity Model Structure
Attributes
 Seven core areas of ERM that drive effectiveness
 Compatible with various specialized frameworks
Risk competency measurement
 25 factors and 68 indicators
 Objective evaluation criteria
 Key issues that differentiate maturity levels
Maturity levels
 Five maturity levels
 Detailed descriptions unique for each attribute
Leadership
 Measure to help reach goals for improvement
Managed
Benchmarking
Repeatable
 Standing in peer group
Initial
 Highlights ERM trends and priorities
Ad hoc
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The measure of intelligence is the ability to change.
Albert Einstein
USING THE OUTPUT
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Based on Your Responses
Assessment
describes the
next level
Each attribute
is assigned a
level
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Strategic Objectives
Business Continuity
Vendor Management
Financial Reporting Compliance
Information Security
Compliance
Business Process
Identify &
Assess
Manage
Response
Options
Monitor
Business Results
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In the middle of difficulty lies opportunity.
Albert Einstein
A PROPOSITION
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Let’s Make a Deal, Saskatchewan Chapter!
 Each of you complete the RIMS Risk Maturity Model
Assessment by December 20th.
 We will provide you with an aggregate Chapter Benchmarking
Report for your January meeting
o Standing in peer group
o Highlighting ERM trends and potential priorities in your area
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Contact Information
Steve Minksy
CEO
LogicManager
+1 (617) 649-1321
Steven.Minsky@logicmanager.com
Carol Fox, ARM
Director of Strategic and Enterprise Risk Practice
RIMS
+1 212.655.6004
cfox@rims.org
www.rims.org
Copyright 2012-2013 Risk and Insurance Management Society, Inc.
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