Enterprise Risk Management and Business Continuity Planning

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Enterprise Risk Management and Business
Continuity Planning

• Mark Carey, CPA, CISA
• President
• 866.335.2736 x8431
• mark_at_delcreo.com
• www.delcreo.com

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BCP Experience

• Business impact assessment
• Functional versus process view
• Standard Business continuity planning
  methodologies and Body of Knowledge neglect
  Program elements
• How does BCP fit in the broader picture of
  managing risk for a company?
• Benchmarking/Leading Practice/Example Plans

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Enterprise Risk Management Definition

• Enterprise Risk Management (ERM) is the
  capability to protect enterprise value by
  managing risk
• With a coordinated and systematic approach,
• Organization-wide, and
• Across all types of risk.

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Business Risk Profiling Risk Drivers
Strategic
Operational
Stakeholder
Financial
Intangible

• Macro Trends
• Competitor
• Economic
• Resource Allocation
• Program/Project
• Organization
• Structure
• Strategic Planning
• Governance
• Brand/Reputation
• Ethics
• Crisis
• Partnerships/JVs

• Processes
• Physical Assets
• Technology
• Infrastructure
• Business
• Interruption
• Legal
• Human Resources
• Environmental
• Hazard

• Customers
• Line Employees
• Management
• Suppliers
• Government
• Partners
• Community

• Market
• Accounting
• Credit
• Cash Management
• Taxes
• Regulatory
• Compliance

• Knowledge
• Intellectual Property
• Information Systems
• Databases
• Information for
• Decision Making

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Business Impact Assessment

• Management challenges the numbers
• Make it real for senior management
• Typical approach/ measures often do not line up
  with how CEO, CFO, CIO evaluate their business
  and make decisions

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Function versus Process View
External Environment
CEO
Internal Environment
Executive
Capital
Products
Manufacturing
Gaining New Business
HumanResources
Marketing
Product/Process Design
Outputs
Materials
Operations
Operations
Information
Information
After Sales Support
Research
Sales
Graphics
Communications
Risk Management
Human Resources
Information Technology
Accounting
Treasury
Support Processes
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BCP Methodologies and Body of Knowledge

• Focused on developing a plan
• What is missing
• Process improvement tools
• Process Modeling and Improvement
• Program management
• Value Drivers
• Strategic Planning and Alignment (Personal and
  Department/Function)
• Reporting
• Knowledge Management
• Program implementation
• Implementation
• Organizational Change

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Strategic Planning

• Are we in alignment with organizational value
  drivers and strategies
• Can we implement our strategy effectively?
• Do we have the right
• Organizational structure
• Tools
• Metrics
• Go to market approach?