TIPS TO GET STARTED FOR INCREASED RISK TRANSPARENCY

ENTERPRISE RISK TRANSPARENCY IS AN INNOVATIVE ACCOUNTING & OPEN REPORTING

SYSTEM FOR KEY MISSION RISKS AND REWARDS

FOR EACH KEY RISK:

Identify the source
Identify and engage key subject matter experts
Capture key information
Manage
Control
Measure
Report
Improve

TIPS FOR EARLY RISK MATURITY LEVELS

Obtain Executive Leadership and Board of Directors governance support for ERM
Focus ERM processes on building and protecting Enterprise Value and Reputation
Select an Enterprise Risk Management Framework (e.g., COSO ERM or ISO Risk Management)
Focus on top 3-5 key risks to strategic and operational performance (e.g., product quality)
Build success and examples of benefits from several initial key risk areas
Leverage functional and business subject matter experts
Facilitate initial risk assessment, improvement, management, and measurement processes
Train and keep it simple
Be collaborative as second line of defense supporting the success of the first lines of defense
Work cross-functional as many key processes are interdependent upon each other
Be an objective and transparent advocate for success of mission, strategy, and operations

TIPS FOR ADVANCED RISK MATURITY LEVELS

Expand beyond initial key risk areas
Further embed into entity key planning cycles:
- Strategic Plan
- Annual Operating Plan
- Human Capital Plan
Refine risk appetite and risk tolerance levels
Embed key elements into entity culture
Build understanding and management of systemic risks and organizational resilience
Expand KPI & KRI measurement and reporting, into entity reporting and compensation processes
Leverage for strategic pursuits such as due diligence & new business integration consistency

THE RISK TRANSPARENCY

RISK GOVERNANCE FRAMEWORK™ (RGF)

RISK TRANSPARENCY helps leverage the principles of enterprise value management and risk governance for key functional areas, processes, and risk areas. RGF builds upon current entity strategic, operational, and risk management processes to transparently link and communicate entity value and risk areas to key strategic and operational objectives and related assets.

Learn more About our RGF Framework Solutions