RISK MANAGEMENT

PROCESS

DAY SIX
OCTOBER 2020 ERM WORKSHOP - SBS GROUP 1
RISK
MITIGATION
4 T/s of Risk mitigation

 Terminate
 Treat
 Transfer
 Tolerate

2
OCTOBER 2020 ERM WORKSHOP - SBS GROUP 2
RISK MITIGATION
Terminate
Transfer activity generating the
risk to another party risk
IMPACT

Treat
Tolerate risk to reduce the
risk and its impact likely impact

LIKELIHOOD
Evaluation
ROLES AND and Selection
RESPONSIBILITIES
Considerations
 Potential Synergies (and Interdependence Repercussions)
 Costs vs. Benefits
 Risk vs. Opportunity Options
 Portfolio View Perspective

4
INHERENT,
CURRENT,
TARGET
LEVELS
 COSO INTERNAL CONTROL
FRAMEWORK
Soft Controls Hard Controls
“People” Activities”
Openness Reviews
Shared Values Inspections
Clarity Policies
Commitment to Reconciliations
Competence Structure
Honesty
High Expectations Limits of Authority
Communications UserIDs and Password
Physical Counts

Source: IIA
PROPRIETARY & CONFIDENTIAL
ACTIVITY Risk mitigation
SEVEN
7
ACTIVITY 7: RISK MITIGATION
• Using the risk heat map from Activity 6
• Develop risk mitigation strategies for each of the identified critical and
high risks
• Include cost benefit analysis for each of the alternative risk mitigation
strategies and basis for deciding most cost-effective risk treatment
• Present your risk mitigation strategy to the group
• Debrief
 RISK MANAGEMENT
PROCESS

WRAP UP
OCTOBER 2020 ERM WORKSHOP - SBS GROUP 9
ARE YOU READY TO TAKE THE
CHALLENGE?

Strategy and Values and Policies, Processes

Objectives Ethics and Procedures
RISK MANAGEMENT
INFRASTRUCTURE

Board of Directors

Risk Management
Committee

President RMU
Chief Risk Officer

Business Business Business Business Business Business Business Business

Unit Unit Unit Unit Unit Unit Unit Unit
CLOSING AND
EVALUATION