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

  1. Obtain Executive Leadership and Board of Directors governance support for ERM

  2. Focus ERM processes on building and protecting Enterprise Value and Reputation

  3. Select an Enterprise Risk Management Framework (e.g., COSO ERM or ISO Risk Management)

  4. Focus on top 3-5 key risks to strategic and operational performance (e.g., product quality)

  5. Build success and examples of benefits from several initial key risk areas

  6. Leverage functional and business subject matter experts

  7. Facilitate initial risk assessment, improvement, management, and measurement processes

  8. Train and keep it simple

  9. Be collaborative as second line of defense supporting the success of the first lines of defense

  10. Work cross-functional as many key processes are interdependent upon each other

  11. Be an objective and transparent advocate for success of mission, strategy, and operations

TIPS FOR ADVANCED RISK MATURITY LEVELS

  1. Expand beyond initial key risk areas 

  2. Further embed into entity key planning cycles:

    • Strategic Plan​

    • Annual Operating Plan

    • Human Capital Plan

  3. Refine risk appetite and risk tolerance levels

  4. Embed key elements into entity culture

  5. Build understanding and management of  systemic risks and organizational resilience

  6. Expand KPI & KRI measurement and reporting, into entity reporting and compensation processes

  7. 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. 

 

TIPS FOR BUILDING ORGANIZATIONAL RESILIENCE

The graphics below provide considerations for the What, How and Sustain stages to obtain organization resilience .

  • LinkedIn Social Icon
  • YouTube Social  Icon

© 2014 - 2021 RISK TRANSPARENCY Inc. All Rights Reserved.