Implementing ERM

Question 1

How do we properly implement ERM?

Answer 1

In a way that is PACED - Proportionate, Aligned, Comprehensive, Embedded, Dynamic

Question 2

What are the benefits of ERM?

Answer 2

MADE2 - Mandatory, Assurance, Decision making, Efficient and Effective core processes.

FIRM - Financial, Infrastructure, Reputational, Marketplace

Question 3

What are the 4 steps for implementing ERM?

Answer 3

PIML - Plan, Implement, Measure, Learn

or

PDCA - Plan, Do, Check, Act

Question 4

How does the COSO Framework 2017 say ERM should be embedded?

Answer 4

Into the activities including mission, vision and core values.

Question 5

What are the 5 COSO Framework Principles to implementing ERM?

Answer 5

1. Governance and Culture - Set tone, establish responsibilities, ethical values and desired behaviours.
2. Strategy and Objective Setting - Risk appetite to be aligned with strategy and objectives.
3. Performance - risk that impact on objectives need to identified and assessed, ranked by severity into the context of risk appetite, so that risk responses can be selected.
4. Review + Revision
5. Information, Communication and Reporting - continual process