Riskonnect

S&P Uses Strategic Enterprise Risk Management to Measure Management Effectiveness

The Issue:

  • Standard & Poor’s Includes Enterprise Risk Management (ERM) Review as Part of its Ratings Process
  • S&P Uses Strategic ERM to Measure Management Leadership

The Question:

During your upcoming S&P visit, is your organization ready to answer analysts’ questions about:

  • The influence of risk management on budgeting and management compensation”?
  • Or, “management’s view of the most consequential risks the firm faces, their likelihood, and potential impact on credit”?
  • Internal and external risk-management communications”?
  • Or, “the role of risk management in the strategic decision making process”?

The Expectations:
S&P says it will “emphasize risk-management culture and strategic risk management.”

S&P’s Expectations Riskonnect GRC Value
Expectations for risk acceptance and avoidance
  • Establish risk targets
  • Clearly illustrate company’s acceptable risk level and risks outside that level
Transition from cost/benefit to risk/reward
  • See the impacts of risk on objectives and financials
  • Include uncertainty as a factor in strategic planning
Board and management responsibility
  • Comprehensive communication platform
  • Effective for communicating to your board
Communicate efforts to manage risks internally and externally
  • Platform provides ability to communicate risk assessment and mitigation activity
  • Patent-pending dynamic visualizations of risks, their relationships and relative impacts
S&P’s Believes ERM is NOT
To elimitate all risks
  • Visualizations of risks enable users to identify, assess and mitigate key risks across the breadth of the organization
Compliance focused
  • Manipulation of visualized risks moves beyond the traditional check-box approach
Avoid all losses
  • Unique visualizations of risks enable user to quickly see risks that can have a material impact on the organization
Disjointed data process
  • View of how risks interrelate across company silos
  • Complete tracking of processes and history
Rigid rule set
  • Adapts to client’s methodology
  • No specific methodology prescribed
Same for all industries
  • Flexible, customizable, adapts to your business process

The Impact:

  • Your organization can realize value and opportunity with a strong strategic ERM program
  • Your S&P rating could be affected
  • Your S&P credit rating is one risk you don’t want to take

The Solution:

  • Riskonnect provides a comprehensive ERM Software-as-a-Service system that adapts to your business process and enables you to integrate a strategic ERM program throughout your organization
  • Contact Riskonnect now and accelerate the maturity of your ERM program

Source: www.standardandpoors.com