RIMS Risk Maturity Model (RMM) Webinar with RIMS Chapter Officers

1. RIMS Risk Maturity Model (RMM) Webinar with RIMS Chapter Officers A Mutual Opportunity

2. A Virtual Presentation for Your Chapter • Randy Besse – Saskatchewan Chapter • Carol Fox – RIMS • Steven Minsky – LogicManager

3. Answering the basic questions

4. A “Win-Win” Proposition Chapter Wins RIMS Wins Greater use of the RIMS Risk Maturity Model Encourage “friendly competition” through regional benchmarking Build more mature risk management practices overall Delivers on its mission to make your organizations more successful • “Ready” presentation • Delivered virtually • Something different • Build chapter camaraderie • Build more mature risk management practices within the chapter • Encourage continuing dialogue

5. Poll: Have you taken the RIMS RMM Assessment? Yes, multiple times Yes, one time Started once, but did not finish No, never Never heard of it before today

6. Delivering Value through RIMS Risk Maturity Model for Enterprise Risk Management

7. Agenda • The Landscape • The Plan • Taking the RMM Assessment • Using the Output • A Proposition • Questions

8. We can't solve problems by using the same kind of thinking we used when we created them.Albert Einstein The landscape

9. The Risk Professional: Balancing Risk and Reward Used with permission per RIMS license agreement with The Official Dilbert Store

10. The Evolving Role of the Risk Professional Source: RIMS and The IIA Risk Management and Audit: Forging a Collaborative Alliance 2012

11. What are the Implications for Risk Management? Expanding organizational risk management competencies

12. Any fool can know. The point is to understand. Albert Einstein The plan

13. What Are Your Top Risks to Successful ERM? What stands in the way of successful ERM at your organization?

14. You Need a Plan! Shape the risk principles and policies of the company, track the capital risk capacity of the company, define who is responsible for managing the specific risks within the organization, and provide a framework for judging the effectiveness of risk-taking Make sure that there is a risk management system in place in each business that includes effective risk-control mechanisms as well as information systems that flow up to senior management What else? Quote Sources: Spencer Stuart

15. Why Use the RIMS Risk Maturity Model? • Bridges the gap between theory and practice • Guide to incremental improvement over time • Measurable ERM value, based on priorities • Addresses rating agency criteria on key attribute areas • Can be used to build an ERM blueprint • Creates value for the organization • Career development tool • Breadth of use • Over 2,000 organizations • Across multiple industries

16. RIMS Risk Maturity Model for ERMThe Seven Attributes

17. Common Elements from RIMS Review Source: RIMS Executive Report: An Overview of Widely Used Risk Management Standards and Guidelines, 2011

18. Elements from RIMS RMM determine Your RMM Score

19. Leverage risk-reward tradeoffs Silo’d Activities Goals

20. Leverage risk-reward tradeoffs Activities Goals

21. You never fail until you stop trying.Albert Einstein Taking the RMM assessment

22. Begin from RIMS website RIMS Risk Maturity Model

24. Getting started is easy!

25. Completing the RMM assessment ERM assessment (example) Factor: Executive ERM support Indicators RIMS RMM indicators provide context for review Evaluation criteria Effectiveness Partially Ad Hoc Select each of the 25 Factors Select a score for each of the 3 evaluation criteria Proactivity Somewhat Reactive Coverage Partially Uncertain

26. RIMS Risk Maturity Model Structure Attributes • Seven core areas of ERM that drive effectiveness • Compatible with various specialized frameworks Risk competency measurement • 25 factors and 68 indicators • Objective evaluation criteria • Key issues that differentiate maturity levels Maturity levels • Five maturity levels • Detailed descriptions unique for each attribute • Measure to help reach goals for improvement Benchmarking • Standing in peer group • Highlights ERM trends and priorities Leadership Managed Repeatable Initial Ad hoc

27. The measure of intelligence is the ability to change.Albert Einstein USING The output

29. Based on Your Responses Assessment describes the next level Each attribute is assigned a level

31. Strategic Objectives Audit & Proactive Management Business Continuity Information Security Vendor Management Financial Reporting Compliance Compliance Business Process Manage Response Options Monitor Identify & Assess Business Results

32. In the middle of difficulty lies opportunity.Albert Einstein A proposition

33. Let’s Make a Deal, Saskatchewan Chapter! • Each of you complete the RIMS Risk Maturity Model Assessment by December 20th. • We will provide you with an aggregate Chapter Benchmarking Report for your January meeting • Standing in peer group • Highlighting ERM trends and potential priorities in your area

35. Contact Information Steve Minksy CEO LogicManager +1 (617) 649-1321 Steven.Minsky@logicmanager.com Carol Fox, ARM Director of Strategic and Enterprise Risk Practice RIMS +1 212.655.6004 cfox@rims.org www.rims.org