RIMS Risk Maturity Model (RMM) Webinar with RIMS Chapter Officers

Copyright 2012-2013 Risk and Insurance Management Society, Inc. 1

RIMS Risk Maturity Model (RMM) Webinar with RIMS Chapter Officers

A Mutual Opportunity


A Virtual Presentation for Your Chapter

• Randy Besse – Saskatchewan Chapter• Carol Fox – RIMS• Steven Minsky – LogicManager


Answering the basic questions

• Carol Fox and Steve MinskyWho• Provide an educational forum for your chapter membersWhat• Scheduled to meet your chapter needsWhen• Wherever we can connect through the internetWhere• Using RIMS Adobe Connect platformHow• To provide a unique, sustainable, and practical experienceWhy


A “Win-Win” Proposition

Chapter Wins• “Ready” presentation• Delivered virtually• Something different• Build chapter camaraderie• Build more mature risk

management practices within the chapter

• Encourage continuing dialogue

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


Poll: Have you taken the RIMS RMM Assessment?

o Yes, multiple timeso Yes, one timeo Started once, but did not finisho No, nevero Never heard of it before today


Delivering Value through RIMS Risk Maturity Model for

Enterprise Risk Management

http://www.logicmanager.com/enterprise-risk-management-erm-software.php


Agenda The Landscape The Plan Taking the RMM Assessment Using the Output A Proposition Questions


THE LANDSCAPE

We can't solve problems by using the same kind of thinking we used when we created them. Albert Einstein


The Risk Professional: Balancing Risk and Reward

Used with permission per RIMS license agreement with The Official Dilbert Store


The Evolving Role of the Risk Professional

Source: RIMS and The IIA Risk Management and Audit: Forging a Collaborative Alliance 2012


What are the Implications for Risk Management?

Proactive

Reactive

• Objectives Focused• Predictive Indicators• Foresight• Strategic• Creates and captures

value

• Event Focused• Post Action Response• After-thought• Transactional• Protects Value

Expanding organizational risk management competencies


THE PLANAny fool can know. The point is to understand. Albert Einstein


What Are Your Top Risks to Successful ERM?

Disabling Culture

Multiple Priorities

Goal Confusion

Execution Ability

“Whirlwind”What stands in the way of successful ERM at your organization?


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

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

You Need a Plan!

What else?

Quote Sources: Spencer Stuart


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


• Executive support within the corporate cultureERM-based approach

• Integration into business processesERM process management

• Accountability within leadership and policy to guide decision-makingRisk appetite management

• Linking outcomes with their sourcesRoot cause discipline

• Analyzing and documenting risks and opportunitiesUncovering risks

• Executing vision, mission and strategy utilizing risk metricsPerformance management

• Integration into operational planning and executionBusiness resiliency and sustainability

RIMS Risk Maturity Model for ERMThe Seven Attributes


Common Elements from RIMS ReviewRIMS 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 X X

Uncovering Risks X X X X X X

Performance Management X X X X X

Business Resiliency and Sustainability X X X X

Source: RIMS Executive Report: An Overview of Widely Used Risk Management Standards and Guidelines, 2011


Elements from RIMS RMM determine Your RMM Score



Silo’dActivities

Goals

Leverage risk-reward tradeoffs



ActivitiesGoals

Leverage risk-reward tradeoffs



TAKING THE RMM ASSESSMENTYou never fail until you stop trying. Albert Einstein


RIMS Risk Maturity Model

Begin from RIMS website




Getting started is easy!


ERM assessment (example)

EffectivenessProactivity

Coverage

Select a score for each of the 3 evaluation criteria

Evaluation criteria

Partially Ad Hoc

Somewhat Reactive

Partially Uncertain

Factor: Executive ERM supportIndicators

RIMS RMM indicators provide context for review

Select each of the 25 Factors

Completing the RMM assessment


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 Measure to help reach goals for improvement

Benchmarking Standing in peer group Highlights ERM trends and priorities

Leadership

Managed

Repeatable

Initial

Ad hoc


USING THE OUTPUTThe measure of intelligence is the ability to change. Albert Einstein



Assessment describes the

next level

Each attribute is assigned a

level

Based on Your Responses


http://spprod2010/resources/ERM/Pages/RiskMaturityModel.aspx


Business ContinuityVendor ManagementFinancial Reporting

ComplianceInformation SecurityCompliance

Identify &Assess

ManageResponseOptions

Monitor

Business Process

Strategic Objectives

Business Results

https://www.rims.org/


A PROPOSITION

In the middle of difficulty lies opportunity.Albert Einstein


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 meetingo Standing in peer group o Highlighting ERM trends and potential priorities in your area



Contact Information

Carol Fox, ARMDirector of Strategic and Enterprise Risk Practice

RIMS+1 212.655.6004

[email protected]

Steve Minksy

CEO

LogicManager

+1 (617) 649-1321

[email protected]


mailto:[email protected]

mailto:[email protected]

Documents

RIMS Risk Maturity Model (RMM) Webinar with RIMS Chapter Officers