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It’s still about risk!
www.pwc.co.za
Enterprise Risk Management (ERM)
© 2015 PricewaterhouseCoopers (“PwC”), a South African firm, PwC is part of the PricewaterhouseCoopers International Limited (“PwCIL”) network that consists of separate and independent legal entities that do not act as agents of PwCIL or any other member firm, nor is PwCIL or the separate firms responsible or liable for the acts or omissions of each other in any way. No portion of this document may be reproduced by any process without the written permission of PwC. (15-16886)
Why PwC?• Track record of helping leading companies make better business
decisions that balance risk and reward
• Access to leading risk management practices and thought leadership at companies across the world and in your industry
• A local team supported by a global network of professionals who are experienced and credentialled in risk management and compliance
• Authors of the COSO Enterprise-wide Risk Management Framework, 2004
• Rated ‘Strong Positive’ in Gartner’s Market Scope for Global Enterprise Governance, Risk Management and Compliance Consulting Services – the highest rating possible
• Positioned in the leaders quadrant of the Gartner Magic Quadrant for Global Risk Management Consulting Services in December 2014
Contacts
At-a-glance
We can help you:
• Identify and assess risk to the achievement of your business objectives
• Assess the effectiveness and efficiency of current risk responses against the full breadth of strategic, operational, financial and compliance risks
• Reduce cost and improve effectiveness of governance, risk and compliance activities
• Evaluate the effectiveness of your risk processes and culture
• Align risk strategy with performance
• Support development of risk transfer strategies
• Assess, design, or implement enterprise risk management capabilities
Gauteng Carmen Le GrangePartnerSouth Africa Business Resilience leader(+27) 11 797 [email protected]
Sian AshdownAssociate Director(+27) 11 797 [email protected]
JC HeynsSenior Manager(+27) 12 429 0406Jc.heyns @za.pwc.com
Western Cape Steve Roberts Partner+27 (21) [email protected]
KwaZulu-Natal Zahid Fakey Partner+27 (31) [email protected]
Jeanette Englund Associate Director+27 (31) [email protected]
Eastern Cape Frank Muller Associate Director+27 (43) 707 [email protected]
NelspruitTony MancosAssociate Director+27 (13) [email protected]
PolokwaneRegina Erasmus Associate Director+27 (15) 817 [email protected]
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Benefits of an effective ERM programme
• Alignment of corporate strategy with risk and performance
• Risk management ownership and accountability embedded into business processes and planning
• Improved risk and performance information availability, timeliness and transparency
• Sustainable cost efficiency and operational effectiveness
• Reduced risk of surprises, fines and/or penalties
• Enhanced value through effective risk taking in pursuit of opportunity
Defining your ERM vision PwC’s ERM frameworkOur ERM framework is made up of a series of building blocks that can be organised into flexible combinations to provide the right solution for your ERM programme. Each building block comprises a number of components and elements that, when combined, make up the foundation for your ERM programme.
As part of defining your customised ERM approach, we will work with you to develop a road map and define which aspects of the framework you want to implement first.
PwC Capabilities
What has prompted you to start discussing ERM now?Why now?
Investment
What is the level of effort required to meet expected benefits?
What is your organisation trying to achieve with an ERM program?
Objective
What are you doing currently, either formally or informally, around risk management?Current state
Impact
How do you want to realise the benefits and how you will sustain this over a period of time?
Riskstrategy
Risk appetite
Risk profile
External communication& stakeholder management
Governance, organisation andpolicies
Business performance, risk monitoring,reporting and KRIs
Risk analysis andresponse selection
Business process People, change and reward Management information,technology and infrastructure
01 Risk Strategy
02 Obligations
03 Risk Appetite
04 Risk Profile
05 Stakeholder Management
06 Governance, Risk & Compliance Structure
07 Governance, Risk & Compliance Policies
08 Monitoring & Reporting
09 Key Risk Indicators
10 Risk Modelling
11 Risk Analysis Techniques
12 Business Process Integration
13 Risk Culture
14 Performance Incentives
15 Governance, Risk & Compliance Training
16 Governance, Risk & Compliance Technology
Business Strategy
Business Platform
Business Management
Service offerings
Description of services performed
ERM maturity assessment
• Understand current state of risk management activities
• Develop detailed recommendations for enhancing efficiency and effectiveness of your ERM programme/organisation
Develop or refine risk framework
• Define governance structure
• Define risk assessment process and criteria
• Develop risk management policies and procedures
• Document communication protocols
• Develop detailed roadmap for implementation
• Prepare and present customised training
• Perform pilot implementations
Implement risk framework
• Consult on determining overall risk appetite and tolerance levels for various risks within the organisation
• Determine appropriate risk tolerances
• Validate risk response plans
• Develop detailed dashboards
• Document risk charter
• Advise on an ERM tool/technology to support the ERM framework
Service offerings
Description of services performed
Conduct enterprise risk assessment
• Facilitate and develop universe of risks for the organisation
• Define risk assessment criteria
• Assess and prioritise results
• Assist with identification of risk mitigation strategies
• Develop and conduct risk culture surveys
Perform risk modelling
• Run risk modelling for credit, market/ liquidity, operational and insurance risks
• Perform financial analytics and valuations
• Conduct capital and stress testing
• Perform scenario analyses
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