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 ERM 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
