ED3D Commitee of Sponsoring Organizations of the Teedy Cuninssin Enterprise Risk Management Integrating with Strategy and Performance ‘Compendium of ExamplesCommittee of Sponsoring Organizations of the Treadway Commission Board Members Rover 8. Hinh Je Richa F Chambers __MihellA, Danaher Basis Tetrwecnensee — Iruea excites eras chars ‘Douglas Frat Sandra Rcttemeyer Reem Steins Saran PwC—Author Principal Contritutors les A. Everson emis. Chesley Franks Martone Buagermiteenr ascent zlasdPormaruGues aan brea ag Geet eeitcendinwas — Swabinwstigioy” Roamer anh) Keen ‘Meare o0.u58 Soe coum cama Matthew Bag Helene Katz ate. sys Bee bee Bec ‘seon0e us| Mam, USA ‘Soom. U8 “Tromss Hotand fale Jo Perapa Andee Soot ine ioe ine Nene usk ewe UA ‘Noman, sa Mana Grimshaw Additional PwC Partners, Principals, and Staff _ Glenn Brady Peter Cauce eter Frank eu ere usa Nota sh eb Gomiy Devi Finer ‘Mega. 088 ‘ienegeno sa Additional Contributors, ‘PN aisoweshes to thane vest Ranbir, Darr Stars, end Kaheen Creder ob fra conans othe daveopment fhe CompandunTable of Contents Foreword 1. Introduction 2. Governance in a Higher Education Institution 3. Culture in a Government Entity 4. Culture in a Financial Services Company 5. Stratagy and Objective-Setting inan Energy Company 6. Strategy and Objective-Setting ina Not-for-Profit Entity 7. Performance in a Consumer Products Company: 8. Performance in a Technology Company 9. Review and Revision in an Industrial Products Company 10. Risk Information in a Healthcare Company ” 24 33 4a 83 68 87Foreword in kooping wens over misin, the COSO cars commissioned and published n 2017 Enerrise Fis Managomert~ iterating wih Sratagy and Perfermance, Tat pbeatonresogniaes he Increasing importance the eonnacton between eaiagy and ety perfomance sa ella ‘oneapts ane aposcatons a errs ek management The second pro hat puseeton the Framework accermodsesciferentvewponts and organzatora actus oerhance states and decsion akg, tals sts et core delnitors, components nd preci and t proves ‘rection ora les of management inated in erarpoe rox menagerie uring te deeiopment of Ents Rsk Maragementlrepraing with Sralgy and Perormance, he Puc Project Tear actus requets or the pblenon encude sxe of te Framework in uso, The pubeaton you ae reading now responds ota eauet. proving ustations o how erganzatins of fret typos and ezes snd derent dusts end geayzoes gh coco spss pees Ale caro ware Soap etiyng Each eae focuses on speci industy, bt oes n oer inusties can bent rom the ils. Safar, hte each exarpa deserios how arent ery has scaled ane acapted te prices other ene ean ue th formation a thay a8 ‘The COSO Boar wou ke a tank PwC ore sgnieant cortibutons in dovloning Enterprise ‘Fisk Management integrating wi Srategy and Perfomance Compendium of Exmpes1. Introduction ‘The COSO publation Enters Rsk Management—leegrating with Statgy and Ferfomarce sts ov a elonshp betwee an enty’s msion von and core ves, "ts sratogie goals and directions and he approaches Used crying out te tty. ‘This complementary publstion ates compendium ot exampesto Husa how an ‘xgarizaton might app principles tom Enterprise Fisk Management—intgeting wih ‘Seatogy and Prforance ss dajto-day prec. Each exarpis Rights specte, incils that areolvart toes of dierent Wes an sesin citer nats. ‘gtr the xamles last each ofthe ve components ad ery papas sl outin he Framoucre How to Use This Document. ‘Tope he most out oli pletion, your or inthe Framanock anhow to tor hon tthe parte srlage, busines cbystyes, ‘sks, and opportunites forthe erty The fst te sto ick about the sie, cela and Comply of your orgaczation, and hes Fate action hat best apples ee Dion. Earhart ese case, whch means ret ataseil pn. how" Ravuctons or tsate bret practice, ut al the compan, ines, oe etnions usa hve ee aouseed in Entre Rk Managemant=Inogating with ‘Seatgy ond Partomance, and you stout retro tat pobleaon oa Compreheive C@szuston of how erties espn, plement, a6 oversee anerp k manager opin mind that his compandium of examples is ween rom he perspective a yt ay business practices, wach as el pecs a mangant ncn fn hte &s oom soparte atten many caus ak uncon eats whine emtaa res, try hat mun scare to specie acta set th plato, This pubetion a nok Intended to ere or supersede regulations that apply oan enti ‘so note at smaller ents may app these prcile using sent sopraaces, For ‘exaole a pute companies have Boards of rectors oc’ salar going Bods ‘ith oversight respons eating tthe aluevayent fan enya saogy ar bushes objectives. A salar eny may have a ess-corpex operation, governance and peraing mods, nd organizational and egal sbuctice. Managorsnt may is0 comms caterer wth ios aba est nad one ‘Some ets ht ae jut begining to delop enters rik management capable may fed te examples tobe comes, whe iis that have ore advanced etre ‘isk management capabiies may tos ham simp. Keepin md tal tha compan ‘Gur was writen fora wise ausence ands not inane abs faery one ‘ranizaton Raha. owes aan ean uses she FrameWhat the Examples Include ‘ne exampies have bean developed for ents of ferent sizes (cal atonal neato) and in ‘tlret sectors, organzed as tatows Local company Chapt 6) + Conaumer produce company (Chapt 7) National + Government enty (Chap) + Energy company (Chena 5) chncogy company (tapi 8) + rec compar (Cate 10} International 1+ Hipar edueatonnatuon (Chapar 2 1+ Noor rot entity Chapter 6) + inaytial proavets company (Chapter 8) Applying the Principles “he earls inthe vaus chaps show hw he prin canbe appl, wth each ncwsing on Zapato citer componeres operon emeprse Rit Managemen Pogtng wth Seaeyy i Perlmnce Esch name + Provides conta to he induty in hich he stale enty operates eth eral ad inte a enerenmans {+ Provides backgroun norman on he specif ety 1+ Hightohts the appicable princes. “+ Ofcusses acetal Mow he organization spies hove cis. + shows now starprie rok managements grad with he sie + Summarass ney berets of hose enterprise Fak management practices, Peano thal the names o oxganiation aed poops inthe exams ae istona an fesemblana to atu! erganatene and people coicanWhat Principles Are Covered Take 11 stows which rinepae are primarily sata he erates or each ype ol lonty (denoted by 2", Some of te examotes ncude scondary formstion baynd the primary oricplesto provide content eg. irtermaton about erik appt or [lemere cna) dain by an" The entation ear ct canoretsin the Framework atte prcils rary late to (Governance and Cftre:Sraagy and Dbjecive Sting: Perlman; Revew ara Revise, intonation, (Communication, ae Reporting2. Governance in a Higher Education Institution Industry Context’ Higher education, oft refereto as postscondary o trary education, ates tearm Ing detvered by unversites, acacemas, cologes,eernaries, ar inatstes of techniogy ‘ar award academic ogres or professional erificatons al hw succesful concuson ‘of program of stu Mary of hoe nso ao have research programs cing tecrnobgy developments, scactiie doco, end nao 9 at dacipines. Higher education eis may be influenced by any oa of te fo8oming extemal factors + Government potcies and furcing tht impact epecatons and reverue seams. ‘+ Prestures tom busrass an ote ater staeenlders tat change nsttutons tobpeteracoount forse! outcomes + oeessed competition rom nternatonlinttaons i atvacing tudes "+ Technology hat as eles! he goth of on programs purpatng tote grsier ‘ext, acoalates oping, an wer ton or student + Leal uncrte atna ecu oper owner, bony couse ‘arg, and wean esc or taching and esearch sat “They may ago be winced by he olowing raters: + Pressuies fo mantis ceras eves of domestic an nterations! stent era: ‘nants whl ave an inal oo orcas eer tom ste utlon and the ‘eputaton of the una. 1+ Chasengosinatvactng and etieg highly sil facut and administrate sat Capabi of devecping chllngng crea ar supporting th chain operating oad ofthe nett, + ‘Stucent actin esting to operating dcisons tha ect the drecton and scope of ‘stent learn, research programs, and academic Weedon, “+ Requirements or comping wh allows and egustions concerning aes, pricy ‘joer ise persons, and campus st. Irstuons teat Haaee na operation tough cembinaton of student ato, s>verment andng grant, donor, and othe sources of income. This noha 1 trating snd mataning ntoration and domes sient excl to genet etton fee 1+ Meatng he standards requred tor govermert unsng, borowing, research 2 ‘ee suede oases on tho tion's reputation for scadem nga and natn, tection Ear opansien as coaen See pmeBes selmi herent ‘Stespecte states ta rs opprsres bao bts on coycoon ninetvaurnai + aenng nto buses parerenige wth prise enterprises, sry groups, a ‘othe egarzatensh pubut of a conenan obec, ++ Solcting ancl uppat rm sane en ihe benetacers though lobbying fouteach, and marking rogram. “+ Managing the fnanca assets of tha ttn, Key Benefits of Enterprise Risk Management in ‘the Example “Te mana sbous now boards can use enor rik manapemert aiden and ‘manage entiy-wie ska and reduce pevlomance vara, Principles Demonstrated “ne flowing principles are perl demonstrated in this example: + icp Execies Bose Rsk Overin-The boas of directors rode oe S05 tn srt and corso overanca exerts o supa nen + Preipe 2 Estebshes Opaating Sructues-Ths organization atablshes operating ‘iusto he pars of sategy and busnoss obec, + Plincipe 8 Evaluates Ateratve Sutape Sais na potent pat onl prot elolewing pres are also demonstate + ripe 20 Reports on Ri, Cu. nd Prfrmance-Mheorgrtation reports on Fak cure, and porfornanse at ute byes and erste ay. Facts and Circumstances? ‘The vives nth same igh promneninstuten based in Southeast Ate vit anaterk ofpartsr wnat" Eizape and oct Ameria, Renowned attract students from around the Jobe. Rhas 30,000 studanis and ovr 6,000 employees facuty ane administers, The clven-maniber boadinatovesoes he unkersty is made up ol epreseraties rom thebbesness, egal and msel communities uri and tant and student poplaon, Stcboard mers oe cesioeresneperden decors The prt of tea boatdis¢ Fetved execute an sums ofthe unre who assumed he ole fou yrs 8B0 opens eserese score)Fecentythe university's tant eroiment has declined and nancies hav ‘et oocats. There have be sveral contebuing factor o these nnd *+ These ointamatonel online MBA programs ta re ring students wih premises cf acconranes pans compton an ewer vig an tution cons + Increasing ques for programs of stay andrasearch in erin els of ech nology anaes, Doscence-, and aeespece that aque ahighercot of dey, + Changes tothe awsatectng pension plan, whlch have ereasedlabor costs + Lower an expected ration he university's investment pote ue te deta ration nt local stock marat and canlenoe fe rapa! ecormy * acy omatig sans ans tomo at aelncsssngy veoh 1+ rereast security cost and student support seedees lowing arenes of ‘on-campus iden ana ber baying attack, During an analysis ofits vais revenue steams, the univer denied hat norton rest menue was fgg bavna ne lhe revenue sures ee Figo 2, Theor, {5 pat ofits onger om ping te unversty ie enrng ooperturtie fra ver. tures ane mdpartyreatotstips 1 support the achvemen fis satoy and bashes bates, ‘The rivers has ateady net with one eestor, Lambda Labs. A partershp wih Lam Los woul! se a muliyoariostent in the uiverayiarctre sro [Src 8 welame stor of warn capital Ass pat fo raga ee of Boars oversight and oboe aerate cordance the board intends hance Vana lency ts govern, cw'igh, are risk management systome. cores 287 20 200° 290 aw ge ee ‘Sper mwen coms at ee‘Lab Labe state that wns the nancial reperting 2d erecasingntrmoton akeay proves ‘aon eel to thar canon to pursue tne scuston, te equa grea ya ‘natn on the sce angpotatalimascts on he untorays longarm petrance A& an ex27 oe {Tenbda poimaa to th nereasng number of sido prtass occuring ear proposed cus ‘changes ad rng decison ard the Impl ote could have on he univers roputaion and Habit 0 atract tare investments, Discussion Designng Board Oversight “Thebowis supperted by the oistng s-commtes designed to overee the perfomance Ofte niverity relation ots mason vison, and care vale The board delegates autor to Ghch cline commas, whens otined greater Stal inthe espectve chats | lovetrante Commitee: reg of he vasiments pot in ne wh the ues sk spe + Aut Commit: oversight of nancial eporting and suo matter + Remaneraton ang Nomination Commit: appelnimor and remuneration of he board of frectora, ware apploabe, a8 sano manazoment “The Botti governance and oversight fo tha allowing: + hubortation ane sccracraton of he univer by theminsry of cation, 1+ Review of and concarance wits the univ’ ateny an isk appetite. + Agora ol tancl statevonts and sigan investor ‘he bord dented oresing th gaty eangements as an opportunity to enhance revenue, nd'tis resoonsie for revowes proposals o ete io any sgheart rangement. Given the ‘toteasing numbor of ssh proposti, he board has stupas to manage hs paris respons ‘yn acant board esting, some directors have expresses cance about the volume of eoplca- tne, Hany ofthe proposals ar Highly tarncal rn special aeas ouside he exptience othe ‘restr, hen aad We ne equred to vow tom, hen evening ath arty proposal to bores typical prove wi ntrmaton onthe purpose ofthe gerne tomar tet, poten ret, sna siaing petormancs- rontorg aporosches, But oard members have long oxrestod reservations bout He lov! and ‘uay of txmatonprodcd. Tey ten to focus on he assunptans provided that underpin he ‘Proposed rangement anon ary contnignt para’ orbiter placa onto res, ‘dar the contrat, including ay that cold act he utara secretion of tho unr [Asa prt ol pul ean of bone oversight antin sn llr erhance ts reporting ne beat ‘Seid o make ta follwing changes 1+ Aboard members wil be required to complet airing ere by te Natorl Insite ot {ome Decor. The raning course hghights the responses of rcters ano reludes actors on entornarkmanageren *+ tue srector nominator wit focus on hereaing he rst of expaionco and expartise ot Saar members inne wth he urveratysmssion, von, ani e-year seg lan Pulte Capcele l ecoracnred am a range ols cling tecretony.eloees nd ge polis and egustory ats+ Tonelp add igor, consistoncy ana etiieney tothe rie proces, and a improve ‘ransparoncy he board wi esabish a management sering conte fo prove ‘ho univers’ rik management capable and practices when etsessin pte parnershipe ‘+ Taran sewing commit wil be glen te tak of eviowing the univers’ unt reporting capsbiltes ane proposing wrprovernt io povaa bate sight Into pertorance ava te otal view oak Creating a Steering Committee Althe request ofthe bod he chit thant ofc and hia opeating for coated S seeing commits compris rpresentatves tam eh of hese the Oca ot Inausty and Commerc iors, formation techacogy teams and oe coe acre "rate factions, Tha oonngabjctves of ta sleeang committe wee se + Oeeiop cert for ewhatingthvs-aryanyeemeats hat akg wth ne urivers {y's hye tatele plan and cover 8 range ot tates performance and sk “+ Develop new tgrate pertormance reparing foe uve tht exoercon the ure trac repoting of key prtorance ators The steer commit tga by sxarsning the university's longstanding mii, von, and co vues Mission: To provi we-las academic and research opportuni Vision: To be the eacing unversty of cole n aadaic motance enabling stat! and stuns to contrbuta tothe avancemant of soc {Core values: Tho puto academic exoalence an ay ney teedom ot encuiy an express, ders, ad nln "Net, the cameo ook the univers’ fear Pores strata lan, which isbased on he mii, on core vats, andl conaidars ak appa The sategie panhasour prt, each of whi provides a Stans ‘sorpion a the supporting business objectives, act "ies and artcpated ecoucoso acreve te wa ‘see + Doinecng academic mxcalenoe + Fostering innovation and advancement + Supporting ne nees of to tutu econ, + Optimaing thancis sx operons patermance, Te staerng committee dete ans assessed rks rated to th sagan pero ‘anes ofthat strategy. Inasiton, the eam worked closaly wis hr eakahate' fo ‘cently te assurotons underpinning ina sttegy. Those assumptions ncuced te [pate gown of student sient, vl of govetnmant undng and oar rat and evslopmants nec at aece ha ve nso para aes eneDesignirg Relevant Reporting Fue 22 anextact tom the unversty's fe-sar ln, shoving the a antes ange srteprseting possi an erpton indy snes bee and portomance target somes cy Jeacrotennone |S amen |r ne sean Sem como | Ei aiaiaaiage — amamanpae wn deed prea ‘Saeine”[hwnine se | oro Torngrnrbsee in| | lessee | | amen ee mouse i un Mote see ference et | ee Sieve mwenmrcer| Suenos steerer ioe ‘eos oe ‘isuesuepsmaes sogucnanernt ‘herman ‘sos trabs Teamiaea mae [Radome [Saray eee bem Somers" [ensason” (ecrngnees | eeecsose tomy Becrooisaee [amare | iseoroeemaenby | Sia see ar aeonne page tra | eg nat ts eg femme ete Shetaasiay as benengensane oases ine SS esa nia ares eras onsetfing 22 Contin ‘Busines Objectives |i ear =e ‘ou game | ingeautmenn any | sissies | wanna (ones ‘Erte ‘oh gt emma =a eae Serskstonmse a Conscering he ak identi, ha naw storing com: Coyeieaxein mee deidus en the alowing approach to mprove he covers currant porting eapebiis * Confer who is anticipated to use te raparts and what tho spect repoctngrequrements of hoe user ~ Mambes ofthe boar wit responsibilty fr ‘governance and ovrsknt o he waver) ~ Merino sion al etait Including aceredtaton,govermant ining, and uaysesurance Potential thre pry investors an pares ho ae look forint and ‘ortili vow of risks thet are managed on an ongoing basis, — Extaral austere ane ratings agencies, + Aajoe on be pertoxmac andre nfoation hat shoud be peal reported + nity ne rescues and capa request develop ongoing, nagated reporting. + Assign 0s and esponsbiie, [Anetine, the unwesty wa using a bslnced scorecard appease for reporing hich covras the four parts othe saege pan (be quo 23). Tha stoeing commits‘decides tort that approach, reviewed he it of isators,sletrg which woul perdiealy report cn othe boars, and whether ary accra cortext and analyst woul be needed,Peete ‘he balined scorecard incuded ay cao and Peromance ad ideityaotantaty marfesting ist, The bps objectives eee gure 2‘ptoutetmtn eebhde “Theanlyis so permittacine unisesty hight oss ke rnd hata Barerstips wih nasty an comarca fuera hk pia Part Senporing he Neds ole Fi Eeonomy, and Pat Opting Oaersena ad Func Perfomance(On itimprovess reporting prectcs, the univers was abl to provide pester wans- pareey ofits cave and forecasted perormare to share wih poi tie pares Inthe case of Larios Labs, to pharmacoutoa recasrh gous war seaking fo permet ‘wt the ures ote a sata at ecearen aberatory tet wou house wor ass esearch teams an teaching tities or unrgracuste an pomgraate mace Studer. The constuction ofthe laboratory would be seen as computtveacvantage Invocruting suns and bostoig equally of he academic curloaum an eae cxpabitos ‘As part of ne proposes contact Largs Labs cluded proven ranting te at fsxcusive Ieenseand patents to the ue of ary ivertios produoed as rest ofthe cor- {ret Using the eiabon eer the members of th stating commits compared he fect ofthe agreement on the unversy's projec fnanci performance andi objec: {eof martainng a gore academe curculum + The tee oirdustry and Commercial Liisons CL inte hat the agreement ous beng uratve to tw unversty anc ety rest need overuse om Government unding sr arate, greater ivestmert fom other potent donors, Fighe sted! admsions. parton rom ntemationa oeatons arate next> Satu algnflesr capt expenstres hat wed hve bean rena the m- tolong-term. However. so erie the potential forte partnership 0 cv fominsomect these ares, which coud challenge the capacty of he univers ‘+The stzerng commit also note he potent ofthe acadeic program. Thay \cenies twe areas of coneann parila stul or paresvad bas nh esearch, fn the sty to main sesame edo, “+ Merve, the impact ofthe propesed new search wous have mixed resus onthe ity to recrat ad retain acoder sa While oss themesives wou kay ‘rice more rest rom experienced researches aa faculty staf. te clauses inte cont at maght fect acaceie reese and cause th prceptin of or ‘etal Bas woul ey have an oppose efecto sowing commis a0 oan tied clausesin he contact hat eoutt pact exiting enroyrent contracts 23 pefermance matics rising to eseuch td pubicaton elon ‘Te staring commie preserted the Sncingsto the board for ther consideration, Figure 25 is snextract of hat ror. Figure 25: Report to Board —Entract‘The folowing dead analysis in Figure 28 otines the aiciated charges tote isk prle en perfomance of be univaray ite esearch center wero be bul.en thd edn tl 1 fa orersght rl, ho boar requ to baance th thant ina and reputational {ans rom any syeement agora he soon yeal to acucenroedom andinde Dendenes of vessorer Inte eave the bow nati cid to purse the 290" funy ts Lamba 8 aignes vin beth fs meson ana vison an fveyea sree sin sth he poi ia aston snes eae he cna gure he (Oversight Delivers Value Prieto enancing ts aterpiae rk management capa, the Bora haa akan a Ieee rigorous apoach to underetanding ik whan vertong mt new area. The effets in pce toy provide the boars wth gestr confidence hal hs conser he ut “Spectrum of vate ond eased the decsion on more an just he fanaa mers, uch Furr by seting reparng ta chide perfomance an the raks sesocated wth he Toul of performance ts unversy was pursuing, te bas has provided the neraion [headed to exrese is ovoroght oe Tne reporting ses he board making more Inst questions at antag the lvl o eet a accepting relive toe parte "Shp ith Lamia Lave Oye to neve Soar oeragh, ie ulversty was abet secure {he prnarship, a oven expect oscease aa fs paetenp go0s otc. ot te ane focused reporting alos enaes he oar ta set sooner ad ith reser ‘arty, trey edo veal pefomance aby.3. Culture in a Government Entity industry Context* CGoverrant nite often have complex and vere misslane that eth lag othe ovr strat 99) to prose seca othe pubse:Drovoping and caving ot ashley cen be cooaod, bychangesn budge, pot! cat, hight isle public otersgh eleven the ovr mission. any government ents ace signiieatascuce constants and deciing budgets, Wich mse thar by tire in feapene to attsion an afrment. Tne challenging eminon cfe auts inemployees whe focus ely an caring ot tar day to-day espana, the bso ire ‘Gorerment ents maybe vence by any oolong external ato: 1+ Plticaltandseapes that atlec uning and pie. 1+ Budget locations by legisatures tat impact the pints ha antty and ay mission changes, + Demograpnes,cucing popustion yom rates adage leteuton, tat ipact te 0 of the population teeny serme + Technolgial shits tat inpact te type and amount of automation wihin eperatensanaine chalengeo Haep pace, + Changing leaceshp itn governs hat rate row pets or mocly existing ones + lmate change, when rpc scnainy of lated goverment pos, Thay may sso belntuencay the foi intra cts + valu of api wich depands on he cient petal amaze and ray gure gov ‘ment to condain ste or gut reooat finds + Aton and eomatiton hich canipact he aabilty ot hihy sled bor, + Operational ata hat chalongs the ably to eaty ou he ato, 1+ Avalabity at vest for ehooogynkastivture tat imate ho abi perform Comal and interconnect achKey Benefits of Enterprise Risk Management in, ‘the Example “This example snows tow a government agony changes cute tomers eect ‘dort are manage ety wie ks. Principles Demonstrated ‘The lolowingpincpes are aiaiy demonsvated nhs example + Pipi DetinesDasbedCule-The organization deines the dees behaviors tat eheacterze tna onty's esr cure + Prewiple&: Domenetates Commirantto Gore Vlves-The pansion cmon rats a commitment tothe erty cor valuos + incple 5 Atvacts,Doalops and Retains Capable Indiviuals-To organization is commited ie bung numan captl in algnment wi the statogy and business onjectves. Aspects of he olowing rr ar alo deronetrats: *+Penwple 20: Reports on Fes, Cutie, and Prformance-The organization raparts on ‘atone, and prtrvance a male leat ana wars the ety Facts and Circumstances? “The Department o Local Eerpris I a goverment enty hat hes exprenced years of _docining budgets and increasing mission responsi. also hasbeen faced wh an resukginangh ree o tion dust emer. The actos hate partments abity fo eect manage ts operations For sme ine man ‘gers end empoyecs have oer cverutaimed anc, ae eel, have focused on car out ter d-o-day respons wie consido'ng perfrarce ok inpieatens The operational areata evews appstons for ral esate dvelopmentnas been parculry nara. Over ore two-year erie, tare was an incase new, tes ie Epplotions, a vend test ‘vlaizaton forts gross several commune, seedy ‘shot tates We gov was ub to Keep up wih the velume, Consequant there wore evete delay a relewing pleatons so aang perm trie months oer cases, brea mes onger tn oer pemtisting enities: Wore, the det snob ‘ter two years the Baloo a few unaressopicans gre to several housand Most ofthe employees whohandied tm applatons conscered he stuaton a te {imo ae bong fst and jst fogaed on evening wha they cul sy work The fom arpiyeos whe tied to cscuss te stuston vith management has tor cance ignored This operational issu bane to nage aie! he reputation and trust ofthe ety when tno cia pote thespian dls, and etn slakahlaers expressed ‘rave concn about e menagomen’ of tape operons. The pubic enbarase ‘ment was matched by calor rvesigaions ro wnat wet wrong. nrespanse, Soir leadeship melo cezuss how thy coud ote the applationbaclg by ealecatng ‘esources and corsa pportstes er more affloscy. But ty asreataea ras ‘ime 0 adcass spring etura enaenge, aerate he departments coe vues. Sd ‘rca ame wage atact heat peat of eoyoes, Res fanarana ng people the eel eral andy sam oad(setae a Discussion Addressing Cultural Challenges Fuss Desires, the head he Deparment of Local Ener, recognies tthe Docking ofa! site ceolopmant pplieaons was a symptom fa rjr a8 roving ‘operational and uta issue. Managemont a a ovls had ot been aust} evai= ‘ing th perfomance and sk mpleatons of hee stone and using tat inormation 0 ‘make Better decisens Aadtoraly the tone Kam managerent suggesta that employees rea us tous on gteng Hor work doe, nr on fas Seuss crak Yast ana Ne {eaderahip tea acknowledged thal hs cue was causing probes bag ‘Te leaders agrees on fet stap to evo the cute tobe more ‘ak avers embed entre sk management capable Wo ‘cach buns untm rae fo crete a ate ac or employes to {as about ik ane proves line fag ro each operating sea “They i is by reatng te ola of ak ambassazor foreach snes unt. These rak mbaseadore wore tobe the mary tek Datwoen ek buses ust and renor management on ssue o isk Thay were gen he responctay ot helping the nail Unis dep adequate sk marageron pracicesandinastu: {ur erty, assess, and peat sk ta evel othe operation. “ii organzatonal mode! alowed the lsadere taom f9 8 cOn- nected evry buses uit odie traning, communeation and feedback about the cut! changes made Crucis o he success of this model was choosing the right poop to bes ambass ors. Each abassadorneedad io command Yespect ram bth epoyees a ha hea folthe buiees unlor example, a sanior manager wh a reporting inert tthe head ol he business unt. Tis helped to mgrove acceptance othe abassacor within ‘he busess unt ad made more aly ha empiojeas woul be win to discus rks ‘inner The suzcoes oftheir coon became apparent te eat ree monte {te program, aischad been brought up trough te ambessador nator, when was tan escalated to the head of the busness ana equted ia change to ho process tht ‘apie ra tom mantostng 20 important to he succes ofthe model washer to communicate message ‘tom he top that messape boing tha fundamental change m environment was needed, hein wih allenpioyees fet sae ringing up an lscvssng ks. Fuss eteated ‘nesiage nallmestings wth employaes a a staf lvls. The senir lessened ‘ibsec what wae oqured to reste ste oraonmet, and hey prosiond 8 wabast noe td hal. The ik aibasador orogam showed the tangible carmen othe se cur. Fura, several eat examples of employees escalating rit vormaton, 2° ‘he epartmert subsequent responding the aks waht eaten commuaeaed the cgan2aton that managements were incre and that all sonments woul be ‘een smousiBecause Russ cou ofr nancial acres ta pomste the desrea baht, oer types ol rearcs wer estate, cing being vacagid by anc ead ship. Te ‘aw pracices wer formalized i ven emplyee ls a espenaities, wch Decame as of ts meas of nent rine patermaei ng sae paren ‘eviews. Ths actoninfored the meseage tha any ovations om he oxpeted bahar (or woud Be handadtough the pareomel perfomance management posse, ‘Several statements ot eapanstay elated to pacts tat wor intend 1oelp Mowe ‘Me crganzaton toad the dated etre: “+ Managsract ces safe envrnmant, which encourages Yansparant ik on Cony stat ton aso the ue ans supportive of apen ee Besuesons + Managernantmetaies employes to wmbsace sk manera nc roi than ‘tht ole antag od so ‘+ Management encourages inating risk the decisionmaking process 1+ Rskambassados parmae ents re minagement awareness hough ane jarencynallvtons andy shang busines unease vise snagmant Employees undertaranal cept espenstaty or ending, seating and managing ie Fray he eacorehip eam but cna estoy sang a change the cute: t 0 oss ainng progam, socal) arin had bean a primary esa! or cnr 'atng varsormatora teas 8 was aso one ofthe ony venues whee anplyees cove Interact aeoes bute =, 0 they gery oned oar to patient in Wan ing Leerahiprecognces he sewer olWaing ana decid 0 vos to adress sone tthe cultural teu nd io enhanc he expansions overall fk capes Taang et ent tal rae to efore the Gass bahar ach Fo I migorarce of bag aura wera ik levels For employees, traning mphasind he mparance ot ‘centiying and eating ak norman ‘he pasivarasute ware 2909 apparent Forhaee amplyeos inthe rel estate dovbonmentapalzaons (grup asin elev! fk starenes auth arang ‘owe thom to ently sn commereate ks te objective of rocassing he appesons sched ‘rmodtying the processed mnpronng ffercy At ‘rater rarang ever Carne Mack Cord Been, Sn adnlne Pom ambassadors tom thes ite et usmers its, ted a oh ta ae common ta them A Conideng na nlormation in agnegst ranged hs assessment of he sc and ees a great xpocure, The toe anassade worked ‘wi ter ousnass ur eager testable sr erss-fonetonal earn dew te Fatt response te sk. Ca, Cadel, are tale wore subeequel recognizes by eadertp fertov forts to Gent protean wet the ak Indepth ma agement traning sow previced atleast once 2 qurelohe "ak asta ee they are esponaie tr embodcing risk manapamon ractces ams caplet the ptrations a tha especie ne Fs nas eo mae ime for regular cussions on margin st. nihess cession ambassadors uerhy arergingrins conadoing he bunnies Stet the departs lana ananges tore an extealenvronment. Ys practios Na ow ben caiod| Int the rua orecessas of lentying buses un nk So atepe ang,Understanding Changes in the Culture Having imolemented sever! cultura changes, adeship wanted o eva he inact ‘ft measires ten. They aay conduct an anual epayee survey with Dad focus. nd at had a good prspation rate. 7o aol survey fais" (which ee fo tivo low eseanse rata, tay ccd hey cous use ne infrmaton from heen Seve sneer “otha en, ny coected ths survey cata ort previous years and repos he responses eooorang cure tote risk aroaesacos and sero” exces. Fowre 4 Ivrea te eave of tr aury over ent yar, wi the enangesn clue bans Inteauredteteean yew? arc 8. Th aur aren ban ache th sv San Improv, bat Ga not reach BO, wns vate rook | Se ee ee er ta, ‘2 hevey een ser en, od cocon tr ata pte spe es Note ht wil the survey sess ct rot ci culture change, ty povided pain me mate on ow bev nv cargng Sar eases meskes eve Designing Relevant Reporting “Theis of the a estate develop anocatons reves thatthe eer p team rat i a comprar ve ot Pome te ceparener ope nsdatonts ug sup rece fits, eer lencers designed a rakvporing process to prove Inkrmason that ould eonarescecion sing and performance revou Torsten, hey dave a a aon the ors Son requested, vo queda the requency with when ass enue Tha mati proied what they needed nats tw reporting ee o sk ana betta sgt resto dacatn mating). Thee cap waa oe the fk for each busines unt othe uni chctves and performance invugh the cua business geriomane ern Th deouseon hich unl hs tne cae on Seales business perlomanes. was madi io elude how fm oepartment pesessed,and esporded to he sks. The response lscussonincuded the curet response, he ropes any parna eoprnen sete tama! rt re ‘mar panne responss, and opparuntes to mpove the precees asa esto he nates. ‘Te second reporting reqursrnt calle for more formal cousderation raking the decisen-making process. eth of hese reporting requremers Wreased vansparecy {te a ain consisred spar of boss decane and o how rake mpact the Derormance of he business unt. As we, hey Inpose6 & consistency on managements Fovew ofdectvors. ‘Treoughout he ene chn of command, leaders ow expect personel a understand the iss at th ee and bo able ropor tam. This expectation bun the men ‘agement stuetue, end iste a conn and fam at masagement mestngs Building Human Capital uss and he lhadershp team athe Dapartmant of Local Enters have conned 0 bid anakeaware suture th thas epecto ntitvs. ‘+ Torexpond to he opportunity to atvact he next gereration of alate thigh atetion rat toy created x seman talons program where patents work tn te isk maragenest tam, and ren meve te her management postions ‘Th mal ana ne program partaiparte to ao0 te lua en casing al nd how ik infomation cana wed to enhance cecson-mating. The progam has helped to change te cute ase program paricpants tae the formation nto ‘hecleren besieasunts were they use ar ee ais ‘Tho adertip eam nas erabished a ratenship wih aloes unary ha Includes ererpise ex management fe curcwum. The sei managers prove ‘he unnersty wih ob descriptions or avalabiepostons for grates, anne Lnheraty feds those opcertnites i ts pipeline of alerted students that aeady have err sk manapemnt knows. “Tho operating mode! of etsssadors has been contsued andi ow embeded 20 ‘hat un oasers belt unaeatan thet othe busines objectives of tar nd ‘dial units Many othe ambassadors nw tink terety abot te ines and hve consecuenty ban evatecin thetiens of eho, ‘These tvs iiaives have alowed th leadership tam ofthe Dapartmont of Let Ete [se to acd enor risk management skis an eapabie the it free sila for succession planing. ‘uss als ecognze hat the business uns ede to ‘embrace risk ranagirent and oredr ther ope ‘Bonsit hy martes eceve tel ik nfraton ‘002 ltd teal esate permit Ta halp ppt the race, eadoranipestablsneda saris of oporating ‘Sancares that al te untsar exacted Yo meet Toese ‘andar provide enough exly so uns can pl ‘ment sk manageran sect whe tetany consistancy seross uns. Th doparment utes por review as one method of xlusing ‘he competence othe tat recy reepansbo fr fek management and whether he nts ar aching te standards. Abaseacors revo the werk of other embassedorsnap oadbackon bow eapabitias canbe enhanced. Aggregate ache sn Dovid norm opis fe eneris-wice raring Leveraging Culture Results in Enhanced Performance “apse allot hese change to ennance te cute an focus on rik awareness cranes anernronmentin wish eneioyoes fet amoonered. The result waste fdng solution the ong backing ove. The foes onthe deskedbahavors and cutive awe deparment a ertancenot Aidt ey to isntily ard communal risks the ort. Now the leadarap tam bette aba fens and espana to eny-wice ‘ake boor hey became natonl news4, Culture in a Financial Services Company Industry Context® ‘Francia servees companies of a wis varity of financial products t estomtes wo wrt ta manage the thancl assets. These companies ange tem local eed unions to (ena inst. Customers vary tom mesial etal clot olage ergata wh Sophistcats financing easements, No tr what hes and sep «fara Insttuton ts comploty of pacucts, operations, and oalnoe sheet mangetrat ‘rv am ts mision, vison ara tea andinivenees ty te reali econornc land regatory cimate Regional barks, in prtclo, provide he ane Mebood fre fsa inwhien they operate, supporing commutes, nur and wnal busines in (ring icelzed sconces and resting jab, nancial srvices antes may be intuenced by any ra of he along esta actors: + Registry soutny and heghtared expectation of tall condi, ening sna bracices, nd he eocineras of erorise rik management prone. + Thehestn ofthe ca economy which yea i strong erated tothe aby to ieroase depos and nding at an iatcte by tania downto + Economic implosion rom the dstvbuton of wasth and by insists financing raw opportuntos and usnaneos, + Disruptions tote ractona barking models as new tchnaogy becomes avaiable (eg, 0vankr9) + Signiteat capita and tact reurements imposed by roguatrs i ecert sli: yb nant eundatons and silence of rancor + Soci expectations of corporal pilatvony ard support of comunty causes ‘Tey may ao bs intusnoed bythe feow ng intra factors ‘+ Tremoes to manage net and neeased canal roqurements pose by requ ‘+ Competion for talanted ampayecs ne ares such as banka, sede aon ‘ment an crest sk management o support inatves and espendv changes 1+ Stable, ong-stancing relstnships contre an urcerstaning custome nesses, lok profes, and capacity to meet ta fears obigatons ‘+ Araatinship-basee approach to enya ees ncessingy an quate Infrmation rom esters gen the avlabty of audted arc eaents, x Fetus, erotervesiabe ntematon, 1s” farina Th warps cot sve conse ew ae eas sh neers paces ‘sonra Een opsasien sous corsa eesesreartose a wrens(tation Key Benefits of Enterprise Risk Management in the Example ‘Th example shows tow a financial seroes company rele on a cate to inroas the ‘age of opportuntes. I icettles opportuites oral seal operations and cus {omar interactions wits ctu norer to promete song term franca sucess Principles Demonstrated ‘Tha following princes ore primary deronsated inthis exam: ‘+ Ping 3: Doines Oeskes Cuturo-Tho rganizaton defies he dested behaviors ‘hat chnracarze the eniys dosed cut, ‘+ Pinapo &:Derstates Commirsat to Core Veles-Theargaiaton denon- ‘ates 9 comment the ety oe vale, + Pips Aes, Devons, a Reais Capable lcisue-Th arparizaton| 'Seomtte a sulding naman explain grant wth the ategy and uannes tects, este oe folowing rire ae see damonctate: "+ Pipi: ales Business Conent-Tne orgarzation considers patent! atiecta of bveness cont on ik profi Facts and Circumstances? ‘rca 82 Bank vas fouades 120 yrs 290. Tireginal bak’ brane basco ‘sinpe penile of sorng the oun and tusinaescefarein tears "We ae at he eat ur comand ezrnty has $950 mtion meses rd approvimamly 20,000 customers Custom ange fom real sna commer, nist, ana eeeutira ‘business that en th a or working capa nd led purpose, The bank has toe banchae snd inoduces e-banking sences nine years ape The ‘ove te ebanking reise soa oleic costs and proved rete ranepwency Othe behaviors and nancal Neth fs customs. Cark managers hive aonomy totalor ranch oparsonstothae car muniy need, accep ew cuore, saree lending dectionsun‘o acatan aut nd alinaee esting nan wrangerents itt spprowed customs Many bank managars pie hamseves on knowing the customers wel ang offering prsonalaed sare As ana manage putt bank succes wn Dug a econ! inant rs, sveral things hapoened that lected the ake 1+ Deposit and eng active recued dramaily as wale buses struggled 1+ Mary smai busines that raion th Names and otha property ath rie Scuce of colar wore advo pact as property valu tumete, nreas- ing isk tothe bane Coltorarequromente cow ardensing customers stad bocome move stinger ae rest 7 heros tcgsrementanpanon nh empl 9 er sy feel ose+ gulstorsbezan'e seri he bank’ lenangpratees ane capabties 2 sssnsong ta creatwortnoss of custome ‘road Bridge Bank responded to those cbservstions by moving away rom quatatve assessment to more quate, verfiabe sources cntrmation an vaducing mers Standardized asestnet practices The aunty of bark managers author new Toane and shar wanton was cute acon to changin banking proton, Gros Brisze ‘costs ad improve eciocies by "+ Reaueng sal ansbraneh hours “+ Changing parormance targets hat emphasize ransactins wih higher fs or lower ‘processing comp ext and associated costs "+ essing one serves to standarize processing wrkow ad reduce overhead 1 Recucing al bane and norte + Racucing imohenestn comerunty acti, rveeiment, and phlsntvepy ‘igure 41 musrate impact ovr saver yar ofthe bank's doco to cera the asset base a have a arger proportion oftonerytc ese asets Figure Bank's Assot Allocation and Financial Performance i | rk moved to ost ing ‘suns Dire rlent acs include te fling +The tow of Bras Brida Bank whieh mest uae compries sean nde nen isto it bby ome, eit Only eet ‘actor neve sie or wore nh lo rs, Tha bank ay ehosen ot fo et "i sepwatesub-comrttogs ands governed by ts board charter. The carer assgrs governance ana oversight esponiblites to the board maccorsice wth its ‘sson von, and core vies Boars Gretor ar ed oa maxenum of hae ‘rms, can asing for years {+ Tmebowd racenyappomted anew rector Bety Fund She is amerber fhe community and loca chara of conmeree sn was prvivsly the franca rac: ‘ovat algal business anhise. Soa as choses to svengthen tos Sebeen he ‘ose ec commis ta he Oak Serve. + nseeentance ith regulary rears, he hoard has appointed ache ale ‘fica GA), ye Man ho opatsGrei tote Bosré. Ter has begets !uthony fo design and pom stable fk management ameDscussion {afore attaning hers Doar mowing, Baty Fund asd Tyler Mann to propre a eport ut the ports wew ak even the perfomance of he ak Te repr igh ‘rac the folowing 1+ There ieineasting separ betwoon the expectatens of euler, shareseces, the community. ard bank ustorers “+ Competing pies erate contusion among aarti ar iat ncnsitart ‘ecion aking, + Lending practices and alos se alfecting he ecorami recovery of he lac! areas ‘he bank servis. “Lander iss increasing, 9 eldence by ate repaymants and celta. “+The numberof compli and adverse sci! mada postings sbout tal intra sions th ban customers isn hese 1+ Markt share has stated to amish as customers move new, competing nants in-banking + Stal urooiernaeneeased and the benk hae experancec tet ata lngnew sain targeed aress suchas resources, complance, and crt risk management. ‘ne report conc hat whe tots to secre the francis hte ofthe bark have ‘been successtul in achiotng the business oopctwesatng to Sanda saat and ‘oindhess. eater rsk now existed in he achevemen of busness objctve: eating "store satsfacton marketshare, andeg ana inovalin. As wo nfo brge rm, {neti o these other obacnes wor iy te epsa I ane satepuars no Cea by he ban arimpect ts prs ais massion ard Sion Defining Desired Behaviors Ae quarry board mavtng ety asked Tylor 0 prsant is tings hom he report. “eran, ha board concludes tat he bane nets to rnow ts focas on fe mise, ston, and cove vues, and asked the management ea o put ogethe a plan of action Tre manggerant eum diced onan approach hal woud hapten et ha peti, “hoy began by detning deed bakavarsinancondance wih masen vision and coe vals. They so undertook an entrprae wa aasessart of be exst9 cutie to onthy where behavers may have daved a where changes ware"equres. The lan ‘acten silestatedin Paws 42 They alo plemented mechansms tor manting ‘ure changes. Figure 42; Broad Bank’s Plan of Action for Defining Culture and DesivedFollowing the araysis, management defined its pots for impleenting change. they bbagan by sling sa that oy woutd be assesing current bank Spee, cng lending and sales practices, customer service and back fice apmatans, The gol was to oruty potenti rats an he rot causes and propose maragemart ations ‘emai tthe ean’ sta, fe chi! exec offen ratrmad he comment othe cor Value of Broa Brge Bank and sarod sa hat hoy wuld oe rm fom rein they came forwara wit aby concams sre fsa antes meetings wate sce eo forthe folowing wees. Meetings ware hel in rfomal settee and wero ed ‘members of managerant nt byte group tam lade, Ts font alowed sa 9 be Mov contortion song thar concer anagerent use he flowing satenent to gauge rections and oan iets om ‘sat aurng he meetnos: + Ovecore value are cea understood, 1 Policies and process provide ear guidance or expect baht + Decisions ae me nse wth or cove vals, ean nthe absence of a dahaed process ope. +My loaer doesnot eampromise compliance and good rik maragtment pacts part of ales tre, 1+ Thao a ear understanding of whats expecta of + lam encouraged ty my lac oeportnsues acd concen + lean arteviata how my rots into the bank's objectives. ‘ets execs, the mansgament tam feconvene to arn ha hey het trom ne empoyee. whch hey snared a olows: + Sta ware bearing ra bent feito sraton Inreoponse lo ere stings! oar spain pr cosse0 shorter branch hers and reatoeation cont otis om longstanding eatorhip marae + Bar managa’ to ess enpowetedto make de: Sirs anahelp customers mast eactvaly As are ‘manage sated“ used tap my cust ks Deter businesree Now| and hen aun ain” {cutomer santos on soared. statog tat Boas ‘Biege Barc nad tured ts back ons custome and fecommunty, + Sevoraltager cents rat wen nterviewec bythe local pest and adit th! he lackaf support rom ara Gide Gane was mpateng her abityt row he restos an cost obs i he ae, + Sta wore anare oth banks bal bul hatha not nen tiene ine polis ‘otra foto ap wth Secsion mating. Canseaventy inconsistent decons ‘were beng made concern undewting, bien, an the operational mates + Sta were unsre how prtoance targets ad ncanes were ctnined gh the composing objects of bang Foancaly successta wha mest te ages of'netsponse fo wha they learned, the management tem prepared plano adress how tha sre veloe oth orgaizaon shouldbe srengbare and negated to Sy o-ay ‘operations, The lan eared ranagemes's commento harrison, vison, an ‘ore vals ofthe Banka fans + Miaslon: Support ha amie nth an tefl print fae ee _munly trough the provision of barking and ancl servcas. + Vision: Bets most tes business aoe and bank fchles for ow cemrunty + Core value: We act withthe utrost inept and professiovlsm, proving the ‘ighest lve of customer service and honoring cur esponsiostes we have to our customer, staf ana coment. ‘The pian ns four mao soctions that arein in wth the satoge an, business obj then andere ves 1. Dementia lescerstip. 2 Proving excelent custome” Ear, 2, prong inter eperatins 4, Bung human capt Demonstrating Leadershio Management implemented Waning modules specie ote mation vison, wd core ‘ales, ane through ts scenaro-based ang thay enabled personnel beter unde ‘Stang how india expectations anv desea behavers teoughout the bats, Fer ‘empl rlsionshi managers were gen ascena'e ofracewng a francing application irom alongstandng cstorer who a ol meet al oho rovees quartet nforation ‘equremers, raring was provided on whe! oe ifomaton ead ba aled ano moet ‘he regustoyrequremests xs ow to decide wn to appcove the sopicaton tat was ine wi the bank's cov values and ik appetite. Sta were als von guidance ‘how to work colsboravel th lens o sranghanapplatins whore needed, Management stor themselves te expectation tha tbe woul embed he values and ‘esa banaviors inal Ture communiation,The value sna bears woul be ont ‘ne enter nad be organzaton to be aged wid suatouy, ok ana perorance. ‘They ate daveoped naw bosrdsaval reporting mela ltd ok, perorance, ad ature ncn ‘+ Communty engagement nexes. + Customer saticton ane byaty “+ Employee mpoweren: and cormmirnen. Theinenton was on hase ens ancl, market sha, equator comehance, and eticleny meter to form amore comprehen loa seorecard in aases8ng ‘he ban’ pevormnee andre poe Providing Excellent Customer Service avin reioned cust complains and considered the experences describe by branch laf ana ea-cantar eam member, he bark dis ornate th dle ton of autoty tha: has bean n place toe tha nancial ss. Tis moan that hase ‘erployes niu inated urecty wth custmars woul once again be making hevst of day-to-day decisions, approving spoicatinsty raw customs and chaning lending its and refancing terme, Of cours, te xpectaon remained ta al oo ‘sions must Ul algn wih he bas risk appetie sna performance trast, Branch operations were sizorevawed, Whare appropri branch opering hours we ‘extended marr the acs of small basses andr communes. An rai of {ha walein tf contres thal te coats of kaepng same branches open st by ‘te mereasing caring aco andres coeltod a custome atslacton sores ane ‘brane parcapton witha he community ‘Te bank ls launched i customer fe” campaign to encourage relationship manag cersand bankers to spend more time wih ta customers and to bela understand ther Dusinsses. Managers were encouraged ta make ate ists and develop a communion tion pla fora cons te ensure ongong contact, antelpae tute needs, ana ery potent issues. One objective of tho campaign was to et ahead of ens experencig ‘Sica and come up with atenate mancing options betoeGeauts tok place Improving Internal Operations ‘The bank als ures atanon wits intemal operation. While tha progressively psated pices and procedures to meat new regulatory requremarts, has ot {oak a modeing exercise te determine he elatoraie betweon ls enang practices and subsequent ecenomic growth, Thats, escarches the moact of barking cts on {sss tevarue growth, ano creation for nel bueneseos, Bead on wha ey lead ‘he bank ovis is underting ad re risk management ples to clay ypes of ‘uaitave formation they cout rey on to suppert ore consent iercng decison by ‘Satorah managers an ending sat Astra ring was ollered to al sto reinforce expected behaviors and coranes| ‘ih pots and procedures. The bank alo Sevelped a program o ongoing ann :0| ‘athe growin and devlopmant of employes wou contin fo ba imagrte with the Fal fle community reltens ado was appointed to promot sakaoliee interests. Te ole nae ning opportunites forthe bart get involve incom ‘rantyiniatves ang pentnopi vestments o tat en. he ads now works ‘lovely wits he hea of reas anc conver baring a wall heute ere teams to promote more etloctive cammunly engagement Builcing Human Capital “he bank nteratc he values an desire behav ino me hnan capt ie cycle, ich inclodee reeling, pertomance managerert, nd tert "New omployees are now aqued to compte the ening modules fnencned above) to remot the bank's values, and bao are commuricaed and unread For the onset. The bark oinores is values and dead bahavar by creuating periodicnawslterstohighght new plcies and rccesses ad renind empiyees of ther porsonal esponsibites,Cuturefraintorced trocgh equred ann raining forall orploees, “he valine and esd behaves have iso been inlerated te anal perormance ‘evews, wich are he bab or sulting andcompeating ear mame Ever ole Inthe rganiaton measured agate common staf desred behaviors. Adherence ‘a lseroatedproceaues apart ofthe review ‘iced Bridge Be loa decced to revi ts ncentves program anaconsaquenty ‘modi he compensstion suture focus on ong em sustanaleperfommarcs in ne wth core vais, rahe han shorterm perfomance. They madeagusimts 1 Include peormancs ncatves to recognize pes rik management Beravors ahd ‘mechan tat ager bons oltre nthe ease ofrecer ick ing. neraing ‘ekmetls into the erpoyes compensation rogram, management serrated ts “ornmimen to romstng Seared behaviors a peermance ax rek Connecting com- pensation and seaqusted perarmance nlped create outcomes tt age with the Company's poole vew af rak Tha reward and consequencos deroraate hat ak ‘managements eveyone’ esponsiby Fotoning sach perlormance easton, management now ssabiohe performance goat ‘th employees for he upeornng year, mbecngentrpae sk management practices ‘nd caabiliies it the achievement thoae goal. Accountable isk management ‘esponsbitesis clear dened and empioyess re request fulton ojec- thes par of ther anual goals. Maragomert has aso estblshod naval and uni love! prtrmanca meas, incontvea, and rewards, mbeding te valves and 3eared behaviors othe process. 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