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Governance, Risk, Compliance & Trust
Presentation to KPMG
May 20, 2009By Alex Todd
Agenda
GRC & Systemic Risk Risk-Reward & Uncertainty-Opportunity Trust Enablement & Risk Management 2.0 Applications Opportunities
Governance Risk & ComplianceDrives Principled Performance® by enhancing corporate culture and integrating governance, risk management, and compliance processes.
Governance• set and evaluate
performance against objectives
• power to authorize a business strategy and model to achieve objectives
Risk Management • proactively identify and
rigorously assess and address potential obstacles to achieving objectives
• identify and address risks that the organization will step outside of mandated and voluntary boundaries
Culture• establish an organizational
climate and mind-sets of individuals that promote ethical behavior, trust, integrity and accountability
Compliance• proactively encourage and
require compliance with established policies and
• detect noncompliance and respond accordingly
OCEG graphic removed from this location
Source: The term Principled Performance is a registered trademark of the non-profit think tank OCEG and is defined in their position paper, Red Book (see http://www.oceg.org/view/RB2Project).
OCEG Business Case
Governance
Risk Management
ERM
Compliance Programs
Ethics Programs
Compliance & Ethics
Programs
Culture
Social Responsibility
IT Governance
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Source: OCEG
OCEG Objectives
“Ensure business is conducted within boundaries and that obstacles and uncertainty are appropriately addressed” - OCEG
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Source: OCEG
OCEG ObjectivesOutcome Types
Desired Outcome Boundary Obstacle Uncertainty
Meet Business Objectives Revenue Legality Brand Customers
Enhance Leadership and Organizational Culture
Trust Integrity Insincerity Employees
Increase Stakeholder Confidence
Share value Insider trading Trust Investors
Prepare and Protect the Organization Avoid adversity Risk tolerance Adverse event Directors
Prevent, Detect and Deduce Adversity Mitigate damage Ethics
Unethical behaviour
Directors
Motivate and Inspire Desired Conduct
Desired conduct Code of conduct Noncompliance Management
Improve Responsiveness and Efficiency
Speed & Quality Cost Agility Management
Optimize Economic and Social Value Value Resources Fair allocation Society
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OCEG Business Case
Regulators
Customers
Investors
Society
What does the world look like?
Systemic Risk
Agenda
GRC & Systemic Risk Risk-Reward & Uncertainty-Opportunity Trust Enablement & Risk Management 2.0 Applications Opportunities
Maturity Model
Profit
Risk Management
Collaboration
Leadership
Sustainability
BUSINESS
Uncertainty
Golden Rule
Uncertainty
Risk Management Innovation
Risks & Uncertainties
REWARD POSSIBILITY
Risk Uncertainty
Risk-Reward & Uncertainty-Possibility
Tactical Risk Price gouging
Strategic Risk Premium brand
Systemic Risk Externalizing risk
Profiteering
High profit margins
Economic bubble
Risk REWARD
Tactical Uncertainty New market
Strategic Uncertainty New offering
Systemic Uncertainty New business model
Revenue growth
Competitive advantage
New value
Uncertainty POSSIBILITY
Agenda
GRC & Systemic risk Risk-Reward & Uncertainty-Opportunity Trust Enablement & Risk Management 2.0 Applications Opportunities
Trust Definitions
Trust is a person's willingness to accept and/or increase their vulnerability by relying
on implicit or explicit information.
Trust = Acceptable Uncertainty
Risk ManagementRisk Management 2.0
Trust Enablement® Framework
Experiential Sources of TrustPersonal experiences of the relying party or those of objective witnesses.
Motive ForcesFactors influencing the actions of the beneficiary (trusted party).
ProficienciesAptitude, knowledge, behaviour and disciplines employed to consistently deliver expected value (people, processes & technology).
Risk TransferenceMechanisms and processes that transfer risk away from the relying party.
Develop Trust Protect Trust
Interpretive Sources of TrustSubjective assertions of the source of the information or third parties.
EmpowermentRelying party’s ability to choose.
Certainty Acceptability
A Management Innovation
Trust Enablement® is both a management philosophy and a technology for business best practices. It fills a business
practices void by counterbalancing risk management based control mechanisms that preserve trust, with those that develop trust, and thereby provides a complementary, foundational, new management competency. It serves to
fundamentally change the leadership mindset from an inside-out to an outside-in orientation.
Agenda
GRC & Systemic risk Risk-Reward & Uncertainty-Opportunity Trust Enablement & Risk Management 2.0 Applications Opportunities
TrustEnablement.com
OfferingsPre-sales Thought
LeadershipTraining & Workshops
Research & Analysis
Consulting & Advisory
Public Policy & Economic Development √ √ √ √
Corporate Governance & Investment √ √ √ √
Policy & Strategy √ √ √ √
Risk Management √ √ √ √
Information Technology & Security √ √ √ √
Online Transactions & Web 2.0 √ √ √ √
Organizational Development & Change Management
√ √ √ √
Leadership, Collaboration & Innovation √ √ √ √
Marketing & Sales √ √ √ √
Supply Chain Management √ √ √ √
Public Policy & Economic Development
Corporate Governance & Investment
Policy & Strategy
Risk Management
Information Technology & Security
Online Transactions & Web 2.0
Organizational Development & Change Management
Leadership, Collaboration & Innovation
Marketing & Sales
Supply Chain Management
Other Initiatives
Collaboration
Standards
EducationAdvocacy
Agenda
GRC & Systemic risk Risk-Reward & Uncertainty-Opportunity Trust Enablement & Risk Management 2.0 Applications Opportunities
Opportunity
