PROTIVITI ENTERPRISE RISK MANAGEMENT SOLUTION

Why do companies care? What is the real problem?

Companies want more from Enterprise Risk Management (ERM).

From To
Several factors are contributing to this trend, such as increased speed of change, growing markets’ volatility and
complexity, higher expectations from investors, greater pressure from regulators, etc. In this context, the need to Risk listing activity for compliance/assurance Management tool to enhance business
navigate uncertainties, the increased scrutiny from the board and the new COSO ERM Framework have clients purposes performance
asking if they have the right focus on ERM: Are they looking to comply and conform, or are they looking to Integrated with, and supportive of, strategy setting
Standalone process
become a more Risk-Informed organization? and business planning
Companies are demanding value beyond “enterprise risk listing” activities. They want and need ERM programs Often qualitative exercises, with limited or no
that help them anticipate, adapt and respond to changes, focusing efforts and resources on risks and quantification Value @risk focused
opportunities that can impact their strategy and performance.
Emphasis on day-to-day activities, with limited or Risk-return considerations for capital and
Forward thinking organizations are using ERM to integrate strategy, business planning and key decision-making no quantified impact on key decision-making resource allocation
processes to drive better business performance. Since each Client’s ERM program and goals are unique, we
can support in guiding the ERM journey based on our deep experience and knowledge. ERM:
Risk-
Informed
What is our ERM methodology framework? Decision- How can Protiviti help?
Making
Industry/Business Context
External Factors Drive the change towards
Identify Risks and Make Risk- Risk-Informed decision-making.
Assess and Quantify Impacts Informed Decisions Monitor and Report Set-Up Risk Appetite
Opportunities

ERM Enablers Methodologies, Data and Tools

Quantify Top Risks
Identify Quantify Decide Monitor
Prioritize
ERM Process Steps Integrated Strategy and Business Execution Enterprise Risks
into Strategy Setting and
Performance Management Business Planning and Forecasting

Evaluation of Strategic Options Integrate with

Performance Monitoring
ERM Pillars Risk Governance Risk Appetite Risk Culture Integrate with Planning,
Integrate with and Reporting
Budgeting and
Evaluation of Forecasting
Internal Factors
Strategic Options
Expectations, Needs and Constraints Illustrative

We can meet Clients anywhere on their ERM journey and guide them forward to Face the Future with Confidence.
Emma Marcandalli Dolores Atallo Darshan Mehta Justin H. Bates Adam Thompson Pasquale Vico
Who are the Managing Director Managing Director Managing Director Associate Director Associate Director Associate Director
experts? Global Lead, ERM North America Lead, ERM Asia-Pacific Lead, ERM Washington, D.C. Houston Rome
Milan New York Kuwait

Please reference the new Global ERM iShare site (under construction).

1 © 2017 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services.
All registered trademarks are the property of their respective owners.
PROTIVITI ENTERPRISE RISK MANAGEMENT SOLUTION
The new Protiviti ERM framework is
based on a Risk-Informed perspective.
External Factors
ERM Enablers
ERM Process Steps Integrated
into Strategy Setting and
Performance Management
ERM Pillars
Internal Factors
External Factors
may include known and emerging
market trends, industry regulations,
listing regulations, external stakeholder
expectations, as well as, unexpected
events.
• External factors shape an
organization’s journey. They may
serve as either shortcuts or
roadblocks in the path to creating an
effective ERM program. The ERM
methodology helps navigate these
factors, whether they serve as
facilitators or challenges on the path
to ERM.
2 © 2017 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services.
All registered trademarks are the property of their respective owners.
A major goal of ERM is to provide management and the board with information on risks and opportunities that may influence key decision-making.
This can be accomplished by an ERM journey guided by a trusted advisor to facilitate their success.
ERM Enablers provide
indicators to allow for
decision-making that is
supported by measurable
information and data.
• Measurable metrics
enable effective debate
about risks and
opportunities and
improve resource
allocation based on risk-
return analysis.
Industry/Business Context
Identify Risks and Make Risk-
Assess and Quantify Impacts Monitor and Report
Opportunities Informed Decisions
Methodologies, Data and Tools
Identify Quantify Decide Monitor
Strategy and Business Execution
Business Planning and Forecasting
Evaluation of Strategic Options
Risk Governance Risk Appetite Risk Culture
Expectations, Needs and Constraints
Integrating ERM Process Steps Into Strategy Setting And Performance ERM Pillars are Risk Internal Factors will vary by
Management allows management and the board to utilize relevant risk Governance, Risk Appetite organization but can include the
information during decision-making. and Risk Culture, and expectations from the top of the
• ERM integration into day-to-day strategy and business execution allows the serve as the foundation of organization, governance structure,
organization to select what risks are relevant for the viability of business the ERM system and will business model complexity,
objectives defined by the entity. By integrating quantification and monitoring influence ERM program availability/quality of resources and
of critical risks into operating activities, ERM can become more effective. design, execution and data.
• Integrating ERM into business planning and forecasting allows clients to implementation. • Internal factors will influence ERM
understand acceptable variation of target results, agree on the strength and • The pillars will help program design and implementation
reliability of the plans and adjust and monitor them to suit the entity’s risk define how ERM is used and be impacted by the risk culture
appetite. in decision-making. of the organization.
• Finally, ERM integration into evaluation of strategic options allows the
organization to select business initiatives, such as investments, new
products, new markets, new partnerships, etc., that, based on the expected
risk-return profile, better fit the entity’s risk appetite.