Enterprise Risk Management Integrating Compliance, ERM and Internal Control Dan Kaneshiro, Office of Management and Budget Temika Edwards, Department of Homeland Security John Sammon, Transportation Security Administration Jacki Ponti, USDA Rural Development Moderator: W. Todd Grams, Deloitte

Enterprise Risk Management - AFERM · Enterprise Risk Management Integrating Compliance, ERM and Internal Control Dan Kaneshiro, Office of Management and Budget Temika Edwards, Department

Download PDF Report

Upload
doanh
View
223
Download
0

Embed Size (px)

Citation preview

Enterprise Risk Management Integrating Compliance, ERM and Internal Control

Dan Kaneshiro, Office of Management and Budget Temika Edwards, Department of Homeland Security John Sammon, Transportation Security Administration Jacki Ponti, USDA Rural Development

Moderator: W. Todd Grams, Deloitte

AFERMSummit2017IntegratingCompliance,ERMandInternal

Control

DanKaneshiroOfCiceofManagementandBudget

November1,2017

Page 3: Enterprise Risk Management - AFERM · Enterprise Risk Management Integrating Compliance, ERM and Internal Control Dan Kaneshiro, Office of Management and Budget Temika Edwards, Department

BackgroundandContext

Page 4: Enterprise Risk Management - AFERM · Enterprise Risk Management Integrating Compliance, ERM and Internal Control Dan Kaneshiro, Office of Management and Budget Temika Edwards, Department

Integra2onofInternalControlsandERM

Page 5: Enterprise Risk Management - AFERM · Enterprise Risk Management Integrating Compliance, ERM and Internal Control Dan Kaneshiro, Office of Management and Budget Temika Edwards, Department

ERMandInternalControls

Governance

EnterpriseRiskManagement

RiskManagement

InternalControls

A-123FutureState

A-123Priorto2016

Source:BasedonCOSO

RiskManagement

InternalControls

ERMandInternalControlsTheCubeVersion

A-123Sec2onII.Update(EnterpriseRiskManagement)

Source:BasedonCOSO

LevelsofOrganizationalStructure

ComponentsofInternalControl

ControlActivities

InformationandCommunication

Monitoring

RiskAssessment

ControlEnvironment Function

OperatingU

nit

Division

Entity Monitoring

InternalEnvironment

Subsidiary

BusinessUnit

Division

Entity-Level

ObjectiveSetting

EventIdentification

RiskAssessment

RiskResponse

ControlActivities

InformationandCommunication

Monitoring

Source:GAOGreenBook

A-123Sec2onIII.Update(InternalControls)

Page 7: Enterprise Risk Management - AFERM · Enterprise Risk Management Integrating Compliance, ERM and Internal Control Dan Kaneshiro, Office of Management and Budget Temika Edwards, Department

AFERM Summit 2017 INTEGRATING COMPLIANCE, INTERNAL CONTROLS, ERM Temika Edwards Department of Homeland Security November 1, 2017

Page 8: Enterprise Risk Management - AFERM · Enterprise Risk Management Integrating Compliance, ERM and Internal Control Dan Kaneshiro, Office of Management and Budget Temika Edwards, Department

ERM AND INTERNAL CONTROL IN PRACTICE

InJuly2016OMBupdateditsCircularNo.A-123tomodernizeeffortstoimplementandcoordinateERMwithstrategicplanningandinternalcontrols.TSAChiefPerformanceandEnterpriseRiskfacilitatedanA-123workinggrouptoimplementthesesuggestedchanges.TheERMandInternalControlsImplementa2onPlanconsistedofthefollowing:

1. Develop Risk Profile

2. Align Risk Responses & Internal Controls

3. Evaluate & Report Internal Controls

4. Coordinate with Requirements &

Budget

KEYCHALLENGES:

Integra4ngERMandInternalControlTaxonomiescanbecomplexü  Iden2fyawaytoalignERMandInternalControls

Taxonomythatmakessensefortheopera2ons

Aligningtopriskandinternalcontroltechniquescanbecumbersomeü  Currentriskresponsealignmentwasmoreeffec2ve

3. Collabora4onsshouldbeins4tu4onalizedandnotbasedonrela4onshipsü  Embedintegra4onmethodsintopoliciesandbudget

ini4a4ves

Page 9: Enterprise Risk Management - AFERM · Enterprise Risk Management Integrating Compliance, ERM and Internal Control Dan Kaneshiro, Office of Management and Budget Temika Edwards, Department

Page 10: Enterprise Risk Management - AFERM · Enterprise Risk Management Integrating Compliance, ERM and Internal Control Dan Kaneshiro, Office of Management and Budget Temika Edwards, Department

ERM AND INTERNAL CONTROL INTERGRATION IS KEY TO MISSION SUCCESS

StrategicDecisions(OMBA-11)

BudgetDecisions(OMBA-11)

ProgramManagement(OMBA-11)

•  Opera4onalControlObjec4ves•  Repor4ngControlObjec4ves•  ComplianceControlObjec4ves•  RiskAssessments

•  AgencyPriorityGoals•  CrossAgencyPriorityGoals•  FedStat

•  Policy•  President’sBudget•  CongressionalJus4fica4on

•  Mission/Vision•  Goals/Objec4ves•  StrategicPlanning

CXO/Opera4onsSupport(OMBA-123)

RisksandUncertainty

•  Strategic•  Opera4onal•  Reputa4onal•  Financial•  Etc.

Source:OMB

Page 11: Enterprise Risk Management - AFERM · Enterprise Risk Management Integrating Compliance, ERM and Internal Control Dan Kaneshiro, Office of Management and Budget Temika Edwards, Department

TIPS TO AVOID PITFALS WHEN PREPARING TO IMPLEMENT ERM & INTEGRATE INTERNAL CONTROLS

OMB A-123 2016 Update - AFERM OMB A-123 2016 Update Mike Wetklow Office of Federal Financial Management Office of Management and Budget Management [s Responsibility for Risk Management

Documents

THE MU KAPPA OMEGA CHAPTER · Temika Jones September 9 Angela Reed September 9 Nicole Rhine September 9 Kimberly Williams September 15 Jeri Cook September 16 Monica Willis September

Documents

$N{μ≥ Hcp ssZhnIZrjvSm¥w - Al Islam Online€¦ · DØa kapZmbamIp∂p \nßƒ (hn.Jp.3:111) F∂v ]d™v A`nam\tØmsS temIka£w apkvenw kapZmbw ka¿∏n°s∏SpIbp≠mbn. \q‰m≠pIfmbn$