DFA Capital Management Inc. DFA vs. ERM Is There A Difference? CAS Special Interest Seminar Understanding the Enterprise Risk Management Process San Francisco,

Slides:

Advertisements

Similar presentations

COSO I COSO II. Meycor COSO, a Comprehensive Solution for Enterprise Risk Management (ERM)

Advertisements

The Department of Energy Enterprise Risk Management Model

Risk The chance of something happening that will have an impact on objectives. A risk is often specified in terms of an event or circumstance and the consequences.

LET’S MAKE HISTORY PLEASANT TO REMEMBER Follow us 22 Hastings Street, London, SE18 6SY, United Kingdom T: E:

“High Performing Financial Institutions and the Keys to Success in an Uncertain Environment”

ERM in the Rating Evaluation CAMAR Fall Meeting November 29, 2007 Thomas M. Mount, ACAS, MAAA Andrew Colannino, Vice President A.M.Best Company.

Tax Risk Management Keeping Up with the Ever-Changing World of Corporate Tax March 27, 2007 Tax Services Bryan Slone March 27, 2007.

Enterprise Risk Management Its Meaning and Import Jerry A. Miccolis, FCAS, MAAA Tillinghast - Towers Perrin.

Strategic Management & Strategic Competitiveness

A Portfolio Approach to Enterprise Risk Management Bruce B. Thomas November 11, 2002.

Chapter 3: The Internal Organization: Resources, Capabilities, Core Competencies and Competitive Advantages Overview: Importance of understanding internal.

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

COMP8130 and COMP4130 Adrian Marshall Verification and Validation Risk Management Adrian Marshall.

The Australian/New Zealand Standard on Risk Management

Applying COSO’s Enterprise Risk Management — Integrated Framework

Title slide PIPELINE QRA SEMINAR. PIPELINE RISK ASSESSMENT INTRODUCTION TO GENERAL RISK MANAGEMENT 2.

The Risk Management Process

1 Risk management and Investigation Peter Roberts

Class 11 Decision Making, Decision Support Systems, & Executive Information Systems MIS 2000Decision Making and Information Systems.

Lecture 3 Strategic Planning for IT Projects (Chapter 7)

Strategic Financial Decision-Making Framework

61 What is hazard risk management?. 62 Emergency risk management is “a systematic process that produces a range of measures that contribute to the well.

PRODUCTS Existing New Existing MARKETS New

Nature and Scope of Marketing Research

IT Risk Management, Planning and Mitigation TCOM 5253 / MSIS 4253

Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Planning and Strategic Management Chapter 04.

GRC - Governance, Risk MANAGEMENT, and Compliance

André Lefebvre, FCAS, MAAA Director – ART Underwriting Winterthur International Casualty Loss Reserve Seminar September 18, 2000 Minneapolis, MN Actuary.

Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc Introduction to Information Technology.

© 2012 Pearson Education, Inc. publishing Prentice Hall. Note 25 SWOT Analysis.

STRATEGIC MANAGEMENT & BUSINESS POLICY 13TH EDITION

Integrated Risk Management Charles Yoe, PhD Institute for Water Resources 2009.

A paper presented for the TEM Conference, Sydney, Australia 27 th -30 th August 2006 Presentation by Anne Walker, Risk Manager Massey University New Zealand.

Project Management IV1021Fö5 Risk Management. Agenda Project Risk Project Risk Management The Risk Management Process Goal: get an understanding of basic.

©2000 Bank for International Settlements 1 F I N A N C I A L S T A B I L I T Y I N S T I T U T E BANK FOR INTERNATIONAL SETTLEMENTS On-site Examination.

RISK MANAGEMENT : JOURNEY OR DESTINATION ?. What is Risk? “ Any uncertain event that could significantly enhance or impede a Company’s ability to achieve.

Study Unit 9 Decision Analysis and Risk Management.

Chapter 8 The Marketing Plan McGraw-Hill/Irwin

The new EC impact assessment: what for? EUROPEAN TRADE UNION CONFEDERATION Sophie Dupressoir.

The Business Plan: Creating and Starting the Venture

The Risk Management Process

CAS Spring Meeting June 2007 Introduction to ERM …The Measurements, Quadrants, Tools, and Solutions Prof. Mark C. Vonnahme Fox Family Clinical Professor.

Enterprise Risk Management An Introduction Frank Reynolds, Reynolds, Thorvardson, Ltd.

EVALUATING AND SELECTING IT INVESTMENT Pertemuan 5-6 Matakuliah: A0824/IT Investment Portfolio Tahun: 2009 The problems of today will not be solved by.

Chapter 1 The Knowledge Context

Management Practices Lecture-5 1. Recap Behavioral Management The Hawthorne Studies Theory X and Y Theory X v. Theory Y Theory Z Systems Considerations.

Project Management Processes for a Project Chapter 3 PMBOK® Fourth Edition.

Lecture 27 Electronic Business (MGT-485). Recap – Lecture 26 E-Business Strategy: Implementation – Organizational Structure and e-Business The Boundary-less.

Managing Uncertainty, Creating Opportunity Enterprise Risk Management J. Brown, CEO.

Organization  As a member of the Strategy & Business Development team, this position will support the development and execution of Corporate, Sector,

Alex Ezrakhovich Process Approach for an Integrated Management System Change driven.

Dolly Dhamodiwala CEO, Business Beacon Management Consultants

Organizations of all types and sizes face a range of risks that can affect the achievement of their objectives. Organization's activities Strategic initiatives.

Contemporary Business Issues Change Management Theory Module Tutor: Nigel Bryant Session th February 2016.

USDA 2016 Financial Management Training Transforming Shared Services

1 Strategic Management: Concepts and Cases Part I: Strategic Management Inputs Chapter 3: The Internal Organization: Resources, Capabilities, Core Competencies.

Managing Project Risk – A simplified approach Presented by : Damian Leonard.

Steve Barfoot, President Advantage International Registrar, Inc.

An Overview on Risk Management

International Strategic Management

People and Culture Office Safety, Health and Wellbeing

How can an Enterprise Risk Management (ERM), programme enable organizations achieve strategic objectives more effectively? Dr P S Sahota

COSO and ERM Committee of Sponsoring Organizations (COSO) is an organization dedicated to providing thought leadership and guidance on internal control,

Risk Management in Plain English

Agenda Who are we? 1 Introductions Journey so far 2

Operating in a Global Business Environment

Insights – Risky Business

Chapter 1 Strategic Management McGraw-Hill/Irwin

The Risk Management Process

Presentation transcript:

DFA Capital Management Inc. DFA vs. ERM Is There A Difference? CAS Special Interest Seminar Understanding the Enterprise Risk Management Process San Francisco, CA April 2-3, 2001 André Lefebvre, FCAS, MAAA

DFA Capital Management Inc. Changes in the Business World In the new economy, CEOs are facing unrelenting pressure to lead and improve their company’s performance At the same time, the rules are changing: Increasing complexity of the global economy Higher customer expectations Intense competition Rapid changes in technology

DFA Capital Management Inc. Master Risk  Create Value Organizations are searching for and developing more comprehensive approaches to monitor and manage business risks Business Risk: The threat that an event or action will adversely affect an organization’s ability to achieve its business objectives and execute its strategies successfully 1 1 Managing Business Risk: An Integrated Approach, The Economist Intelligence Unit, 1995

DFA Capital Management Inc. Enterprise Risk Management ERM is an interactive process of well-defined steps which, taken in sequence, support better decision- making by contributing a greater insight into business risks and their impacts

DFA Capital Management Inc. Elements of ERM Process Establish Context Identify Risks Analyze/Quantify Risks Assess/Prioritize Risks Treat/Exploit Risks Monitor&ReviewMonitor&Review CommunicationCommunication Integrate Risks

DFA Capital Management Inc. Establish Context Understand the: strategic (external) context organizational (internal) context risk management context Develop the risk evaluation criteria Define the structure

DFA Capital Management Inc. Identify Risks Document the conditions and events that represent material threats to the organization’s achievement of its strategic objectives or represent areas to exploit for competitive advantage

DFA Capital Management Inc. Types of Risks Strategic e.g., competitor risk, shareholder relations risk Operational e.g., customer satisfaction risk, authority/limit risk Financial e.g., price risk, liquidity risk, credit risk Hazard e.g., catastrophic loss risk, health & safety risk

DFA Capital Management Inc. Analyze/Quantify Risks Analyze risks in terms of consequence and likelihood in the context of existing controls Quantify the consequence and likelihood using qualitative, semi- quantitative, or quantitative (or a combination of these) analyses

DFA Capital Management Inc. Integrate Risks Aggregating all risk distributions, reflecting correlations and portfolio effects

DFA Capital Management Inc. Assess/Prioritize Risks Evaluate the risk Prioritize list of risks

DFA Capital Management Inc. Treat/Exploit Risks Identify options for risk treatment Assess the options Prepare risk treatment plans Implement treatment plans

DFA Capital Management Inc. Monitor & Review It is necessary to monitor the risks, the effectiveness of the risk treatment plan, the strategies, and the management system that is set up to control the implementation Ongoing review is essential to ensure that the management plan remains relevant

DFA Capital Management Inc. Communicate Important to develop a communication plan for both internal and external stakeholders at the earlier stage of the process