COSO_ERM企业风险管理框架.pptx

Applying COSOsEnterprise Risk Management Integrated FrameworkSeptember29,2004Todays organizations are concerned about:RiskManagementGovernanceControlAssurance(andConsulting)ERM Defined:“a process,effected by an entitys board of directors,management and other personnel,applied in strategy setting and across the enterprise,designed to identify potential events that may affect the entity,and manage risks to be within its risk appetite,to provide reasonable assurance regarding the achievement of entity objectives.”Source:COSO Enterprise Risk Management Integrated Framework.2004.COSO.Why ERM Is Important Underlyingprinciples:Everyentity,whetherfor-profitornot,existstorealizevalueforitsstakeholders.Valueiscreated,preserved,orerodedbymanagementdecisionsinallactivities,fromsettingstrategytooperatingtheenterpriseday-to-day.Why ERM Is Important ERMsupportsvaluecreationbyenablingmanagementto:Dealeffectivelywithpotentialfutureeventsthatcreateuncertainty.Respondinamannerthatreducesthelikelihoodofdownsideoutcomesandincreasestheupside.This COSO ERM framework defines essential components,suggests a common language,and provides clear direction and guidance for enterprise risk management.Enterprise Risk Management Integrated Framework The ERM FrameworkEntity objectives can be viewed in thecontext of four categories:Strategic OperationsReportingComplianceThe ERM FrameworkERM considers activities at all levelsof the organization:Enterprise-levelDivision orsubsidiaryBusiness unitprocesses Enterpriseriskmanagementrequiresanentitytotakeaportfolio viewofrisk.The ERM FrameworkManagementconsidershowindividualrisksinterrelate.Managementdevelopsaportfolioviewfromtwoperspectives:-Businessunitlevel-EntitylevelThe ERM FrameworkTheeightcomponentsoftheframeworkareinterrelated The ERM FrameworkInternal EnvironmentEstablishesaphilosophyregardingriskmanagement.Itrecognizesthatunexpectedaswellasexpectedeventsmayoccur.Establishestheentitysriskculture.Considersallotheraspectsofhowtheorganizationsactionsmayaffectitsriskculture.Objective SettingIsappliedwhenmanagementconsidersrisksstrategyinthesettingofobjectives.Formstheriskappetiteoftheentityahigh-levelviewofhowmuchriskmanagementandtheboardarewillingtoaccept.Risktolerance,theacceptablelevelofvariationaroundobjectives,isalignedwithriskappetite.Event IdentificationDifferentiatesrisksandopportunities.Eventsthatmayhaveanegativeimpactrepresentrisks.Eventsthatmayhaveapositiveimpactrepresentnaturaloffsets(opportunities),whichmanagementchannelsbacktostrategysetting.Event IdentificationInvolvesidentifyingthoseincidents,occurringinternallyorexternally,thatcouldaffectstrategyandachievementofobjectives.Addresseshowinternalandexternalfactorscombineandinteracttoinfluencetheriskprofile.Risk AssessmentAllowsanentitytounderstandtheextenttowhichpotentialeventsmightimpactobjectives.Assessesrisksfromtwoperspectives:-Likelihood-ImpactIsusedtoassessrisksandisnormallyalsousedtomeasuretherelatedobjectives.Risk AssessmentEmploysacombinationofbothqualitativeandquantitativeriskassessmentmethodologies.Relatestimehorizonstoobjectivehorizons.Assessesriskonbothaninherentandaresidualbasis.Risk ResponseIdentifiesandevaluatespossibleresponsestorisk.Evaluatesoptionsinrelationtoentitysriskappetite,costvs.benefitofpotentialriskresponses,anddegreetowhicharesponsewillreduceimpactand/orlikelihood.Selectsandexecutesresponsebasedonevaluationoftheportfolioofrisksandresponses.Control ActivitiesPoliciesandproceduresthathelpensurethattheriskresponses,aswellasotherentitydirectives,arecarriedout.Occurthroughouttheorganization,atalllevelsandinallfunctions.Includeapplicationandgeneralinformationtechnologycontrols.Managementidentifies,captures,andcommunicatespertinentinformationinaformandtimeframethatenablespeopletocarryouttheirresponsibilities.Communicationoccursinabroadersense,flowingdown,across,anduptheorganization.Information&CommunicationMonitoringEffectivenessoftheotherERMcomponentsismonitoredthrough:Ongoingmonitoringactivities.Separateevaluations.Acombinationofthetwo.Internal ControlAstrongsystemofinternalcontrolisessentialtoeffectiveenterpriseriskmanagement.ExpandsandelaboratesonelementsofinternalcontrolassetoutinCOSOs“controlframework.”Includesobjectivesettingasaseparatecomponent.Objectivesarea“prerequisite”forinternalcontrol.Expandsthecontrolframeworks“FinancialReporting”and“RiskAssessment.”Relationship to Internal Control Integrated FrameworkERM Roles&ResponsibilitiesManagementTheboardofdirectorsRiskofficersInternalauditorsInternal AuditorsPlayanimportantroleinmonitoringERM,butdoNOThaveprimaryresponsibilityforitsimplementationormaintenance.Assistmanagementandtheboardorauditcommitteeintheprocessby:-Monitoring-Evaluating-Examining-Reporting-RecommendingimprovementsVisittheguidancesectionofTheIIAsWebsiteforTheIIAspositionpaper,“RoleofInternalAuditingsinEnterpriseRiskManagement.”Internal Auditors2010.A1Theinternalauditactivitysplanofengagementsshouldbebasedonariskassessment,undertakenatleastannually.2120.A1Basedontheresultsoftheriskassessment,theinternalauditactivityshouldevaluatetheadequacyandeffectivenessofcontrolsencompassingtheorganizationsgovernance,operations,andinformationsystems.2210.A1Whenplanningtheengagement,theinternalauditorshouldidentifyandassessrisksrelevanttotheactivityunderreview.Theengagementobjectivesshouldreflecttheresultsoftheriskassessment.Standards1.Organizationaldesignofbusiness2.EstablishinganERMorganization3.Performingriskassessments4.Determiningoverallriskappetite5.Identifyingriskresponses6.Communicationofriskresults7.Monitoring8.Oversight&periodicreviewbymanagementKey Implementation FactorsOrganizational DesignStrategiesofthebusinessKeybusinessobjectivesRelatedobjectivesthatcascadedowntheorganizationfromkeybusinessobjectivesAssignmentofresponsibilitiestoorganizationalelementsandleaders(linkage)Example:LinkageMissionToprovidehigh-qualityaccessibleandaffordablecommunity-basedhealthcareStrategic ObjectiveTobethefirstorsecondlargest,full-servicehealthcareproviderinmid-sizemetropolitanmarketsRelated ObjectiveToinitiatedialoguewithleadershipof10topunder-performinghospitalsandnegotiateagreementswithtwothisyearEstablish ERMDetermineariskphilosophySurveyriskcultureConsiderorganizationalintegrityandethicalvaluesDeciderolesandresponsibilitiesExample:ERM OrganizationERM DirectorVice President andChief Risk OfficerCorporate Credit Risk ManagerInsurance Risk ManagerERMManagerERMManagerStaffStaffStaffFES Commodity Risk Mg.DirectorRiskassessmentistheidentificationandanalysisofriskstotheachievementofbusinessobjectives.Itformsabasisfordetermininghowrisksshouldbemanaged.Assess RiskEnvironmental RisksCapitalAvailabilityRegulatory,Political,andLegalFinancialMarketsandShareholderRelationsProcess RisksOperationsRiskEmpowermentRiskInformationProcessing/TechnologyRiskIntegrityRiskFinancialRiskInformation for Decision MakingOperationalRiskFinancialRiskStrategicRiskExample:Risk ModelSource:Business Risk Assessment.1998 The Institute of Internal AuditorsControl ItShare orTransfer ItDiversify orAvoid ItRiskManagementProcessLevelActivityLevelEntity LevelRiskMonitoring IdentificationMeasurementPrioritizationRiskAssessmentRisk AnalysisDETERMINE RISK APPETITERiskappetiteistheamountofriskonabroadlevelanentityiswillingtoacceptinpursuitofvalue.Usequantitativeorqualitativeterms(e.g.earningsatriskvs.reputationrisk),andconsiderrisktolerance(rangeofacceptablevariation).Keyquestions:Whatriskswilltheorganizationnotaccept?(e.g.environmental or quality compromises)Whatriskswilltheorganizationtakeonnewinitiatives?(e.g.new product lines)Whatriskswilltheorganizationacceptforcompetingobjectives?(e.g.gross profit vs.market share?)DETERMINE RISK APPETITEQuantificationofriskexposureOptionsavailable:-Accept=monitor-Avoid=eliminate(get out of situation)-Reduce=institutecontrols-Share=partnerwithsomeone(e.g.insurance)Residualrisk(unmitigated risk e.g.shrinkage)IDENTIFY RISK RESPONSESImpact vs.ProbabilityControlShareMitigate&ControlAcceptHigh RiskMedium RiskMedium RiskLow RiskLowHighHighIMPACTPROBABILITYLowHighHighIMPACTPROBABILITYHigh RiskMedium RiskMedium RiskLow RiskExample:Call Center Risk AssessmentLossofphonesLossofcomputersCreditriskCustomerhasalongwaitCustomercantgetthroughCustomercantgetanswersEntryerrorsEquipmentobsolescenceRepeatcallsforsameproblemFraudLosttransactionsEmployeemoraleControlRiskControlObjectiveActivityCompletenessMaterialAccrualoftransactionopenliabilitiesnotrecordedInvoicesaccruedafterclosingIssue:Invoices go to field and AP is not aware of liability.Example:Accounts Payable ProcessDashboardofrisksandrelatedresponses(visualstatusofwherekeyrisksstandrelativetorisktolerances)FlowchartsofprocesseswithkeycontrolsnotedNarrativesofbusinessobjectiveslinkedtooperationalrisksandresponsesListofkeyriskstobemonitoredorusedManagementunderstandingofkeybusinessriskresponsibilityandcommunicationofassignmentsCommunicate ResultsMonitorCollectanddisplayinformationPerformanalysis-Risksarebeingproperlyaddressed-ControlsareworkingtomitigaterisksAccountabilityforrisksOwnershipUpdates-Changesinbusinessobjectives-Changesinsystems-ChangesinprocessesManagement Oversight&Periodic Review Internal auditors can add value by:Reviewingcriticalcontrolsystemsandriskmanagementprocesses.Performinganeffectivenessreviewofmanagementsriskassessmentsandtheinternalcontrols.Providingadviceinthedesignandimprovementofcontrolsystemsandriskmitigationstrategies.Implementingarisk-basedapproachtoplanningandexecutingtheinternalauditprocess.Ensuringthatinternalauditingsresourcesaredirectedatthoseareasmostimportanttotheorganization.Challengingthebasisofmanagementsriskassessmentsandevaluatingtheadequacyandeffectivenessofrisktreatmentstrategies.Internal auditors can add value by:FacilitatingERMworkshops.Definingrisktoleranceswherenonehavebeenidentified,basedoninternalauditingsexperience,judgment,andconsultationwithmanagement.Internal auditors can add value by:For more informationThispresentationwasproducedbyApplying COSOsEnterprise Risk Management Integrated Framework