CCM1 – Managing Uncertainty & Creating Value with Enterprise Risk Management

Synopsis

In a world of risks and constant changes, effective risk management has the potential to increase the reliability of operations, build resilience, and foster innovation/value creation—three keys to achieving sustained performance.

Too often, companies have a static, assets-based approach to the risks that they are facing. When managing risks, they essentially rely on risk-control mechanisms. As a result, risk management programs often deteriorate into narrow compliance and lead many organisations to underperform.

This workshop provides a framework in developing a dynamic vision of risk management called Enterprise Risk Management (ERM).

The success of any firm depends jointly on its ability to create value and preserve value. The creation of value arises when a firm is able to identify and execute investments with a positive net present value. However, the creation of value invariably exposes the firm to risk and this value can easily be jeopardized. A fall in demand for its product, a sudden rise in production or financing costs, a technological failure, destruction of assets or information, a liability suit, or the activities of an employee, can easily wipe out the value that was created. In extreme cases, this may even bankrupt the firm.

Firms need to devote increasingly more time, attention and resources to craft strategies related to manage more effectively the new risks and uncertainties emerging in today's global and volatile business environment. Learn how to build the business case for risk management and how you can deploy an enterprise wide risk management system that makes a real difference in how well your organisation could deliver on its performance potential and how to realize the promise of ERM .

Course Outline

In a world of risks and constant changes, effective risk management has the potential to increase the reliability of operations, build resilience, and foster innovation/value creation—three keys to achieving sustained performance. Too often, companies have a static, assets-based approach to the risks that they are facing. When managing risks, they essentially rely on risk-control mechanisms. As a result, risk management programs often deteriorate into narrow compliance and lead many organisations to underperform.

This module workshop provides a framework in developing a dynamic vision of risk management called Enterprise Risk Management (ERM).

The success of any firm depends jointly on its ability to create value and preserve value. The creation of value arises when a firm is able to identify and execute investments with a positive net present value. However, the creation of value invariably exposes the firm to risk and this value can easily be jeopardized. A fall in demand for its product, a sudden rise in production or financing costs, a technological failure, destruction of assets or information, a liability suit, or the activities of an employee, can easily wipe out the value that was created. In extreme cases, this may even bankrupt the firm.

Firms need to devote increasingly more time, attention and resources to craft strategies related to manage more effectively the new risks and uncertainties emerging in today's global and volatile business environment. Learn how to build the business case for risk management and how you can deploy an enterprise wide risk management system that makes a real difference in how well your organisation could deliver on its performance potential and how to realize the promise of ERM .

Module Workshop Content

• Concepts (Exposures, perils and hazards, categories, loss frequency and severity) and Foundations of Risk & Risk Management
• What is Integrated Risk Management & ERM? Holistic risk management vs. the "silo" approach.
• The purpose of risk management: Protect assets or create value
• What are the key drivers for adopting ERM? Trends on current ERM developments in both public and private sector
• How the business case for ERM can be made internally? The Costs and Benefits of ERM
• Connecting ERM and Strategy: It's All About Adding Value
• Understanding the Risk Management Process and the ERM Framework
• What are the positive and negative impacts of ERM on organisations? And why?
• Who should be in charge: What are the roles of the board, the CEO, senior management, business leaders, Chief
• Risk Officer (CRO) and internal audit?
• How can vision be turned into reality? What strategies, activities and resources are needed and available for ERM project?
• How does organisational culture affect ERM launch? What are the critical culture issues to address? How to get leadership support and foster employee buy-in
• What are some effective benchmarks for evaluating ERM progression?

Key Take-away

• Learn from real case studies and take part in risk simulation exercise
• Develop Checklists, how-to procedures/reminders and templates
• Learn the risk maturity model
• Get a sample ERM value proposal
• Learn a scoring implementation Health tools for ERM
• And Many More