The key proposition of Enterprise Risk Management is value creation and or enhancement which ultimately delivers sustainable comparative advantage exemplified by organizational excellence. This presentation highlights key components of both management concepts and points of congruence.

1. Enterprise Risk
Management &
Organizational
Excellence
Eneni Oduwole
January 17, 2022

2. Overview
What is Organizational
Excellence?
Pillars of
Organizational
Excellence
OE Measurement
Framework
Organizational
Excellence KPIs
What is Enterprise
Risk Management?
Elements of Enterprise
Risk Management
ERM & OE Points of
Congruence
Benefits of ERM
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3. Course Objectives
° To expose participants to the fundamentals of Enterprise Risk Management
° To acquaint participants to the elements and paths to Organizational Excellence
° To help participants in understanding the alignment between Enterprise Risk Management and
Organizational Excellence
° To ensure participants are able to practically drive Organizational Excellence after this course
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4. ORGANIZATIONAL
EXECELLENCE
Sustaining Growth &
Performance
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5. Organizational
Excellence
° What is it?
° Why focus on it?
Organizational Excellence (OE) can be defined as the unending efforts
made by all stakeholders in an organization to institute a fit-for-purpose
framework of policies, standards and procedures which would engage
and motivate employees to deliver best in class products and services
that fulfill customers’ desires within business expectations in the
attainment of set objectives.
• OE provides an excellent foundation with scalable processes for
building a sustainable high performance driven organization.
• It provides an integrated and coordinated way for firms to drive
tangible and lasting results.
• It enables easy identification of interdependencies and
interrelationships within an organization which helps with well
coordinated business and operational activities, and reducing non-
value add activities.
• It provides a platform for long term comparative advantage and
continuous increase in shareholders value.
• It encourages innovation and out-of-the-box problem solving which in
turn delivers higher return on investments.
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6. Pillars of OE
1. Process Management – as derived from the organization’s strategic
direction, defined by its Leadership and Management, and consistent
application of guiding principles to deliver excellent customer service
delivery.
2. Project Management – encompasses all initiatives for process
improvement, work environment optimization, project based and
projected related activities, processes for measuring progress made,
and timely delivery of expected project goals.
3. Change Management – comprises all efforts at leading change,
strategic communications, pain management and reduction and
smooth transitions from old to new processes or ways of doing
business.
4. Knowledge Management – starts from preservation of organizational
culture and values, investment in new knowledge, attraction and
retention strategy for key human resources, and focus on staff
wellbeing.
5. Resource Management – to avoid waste, loss build up yet is well
deployed to maximize performance and ensure proper engagement
and passion for achievement of set goals by all stakeholders.
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7. OE Measurement Frameworks
1. Balanced Scorecard – A balanced scorecard is a strategic management performance metric used to identify
and improve various internal business functions and their resulting external outcomes. Balanced scorecards
are used to measure and provide feedback to organizations.
2. TQM – Total Quality Management (TQM) is the continual process of detecting and reducing or eliminating
errors in manufacturing, streamlining supply chain management, improving the customer experience, and
ensuring that employees are up to speed with training. Total quality management aims to hold all parties
involved in the production process accountable for the overall quality of the final product or service.
3. Performance Prism – The Performance Prism is a management framework that reflects the complexities of
organisations and the multiplicity and reciprocity of stakeholder relationships; it focuses on the reciprocal
relationship between the organisation and its stakeholders, as opposed to just stakeholder needs.
4. Tableau De Bord – A Management tool that constitutes an information tool for monitoring process based
organizational activities using well defined performance indicators.
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8. Balanced Scorecard
The Balanced Score Card Institute states that “The
balanced scorecard (BSC) is a strategic planning and
management system organizations use to:
• Communicate what they are trying to
accomplish
• Align the day-to-day work that everyone is
doing with strategy
• Prioritize projects, products, and services
• Measure and monitor progress towards
strategic targets
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9. Key OE KPIs
1. Financial KPIs
• Profitability KPIs
• Revenue KPIs
• Cashflow KPIs
• Cost or Expenses KPIs
• Investment KPIs
• Debt KPIs
2. Process KPIs
• Production Capacity vs. Utilization
• Timely Delivery of Goods & Services
• Percentage of Defective Products
• Regulatory Sanctions
3. Human Resource Management KPIs
• Compensation KPIs
• Performance KPIs
• Culture KPIs
• Employment Status KPIs
4. Customer KPIs
• Customer Return Rate
• Customer Satisfaction Rate
• Contact volume by Channel
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10. TEA
BREAK
30MINS PLEASE
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11. ENTERPRISERISK
MANAGEMENT
Driving Growth &
Performance
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12. Encompasses
management of all
financial and non-
financial issues that
may impede
achievement of set
objectives
Before Now
Dealt with the
organization’s
concerns for
financial losses
Traditional Risk Management Enterprise Risk Management
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13. Enterprise Risk
Management
COSO (Committee of Sponsoring Organizations of the
Treadway Commission) defines ERM as,
“A process, affected by an entity’s board of
directors, management and other personnel,
applied in a strategy setting and across the
enterprise, designed to identify potential events
that may affect the entity, and manage risk to be
within its risk appetite, to provide reasonable
assurance regarding the achievement of entity
goals.”
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14. COSO’S ERM
FRAMEWORK
Multi-dimensional Perspective
https://www.ncua.gov/regulation-supervision/corporate-credit-union-guidance-letters/implementing-section-70421-enterprise-risk-management
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15. Enterprise Risk
Management
The Institute of Internal Auditors defines it as:
“A structured, consistent and continuous process
across the whole organization for identifying,
assessing, deciding on responses to and
reporting on opportunities and threats that affect
the achievements of its objectives.”
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16. Components
of ERM
Defining Your Risk Strategy
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17. Three Lines
of Defense
Risk Management by All
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18. General Understanding of ERM
• Firm-wide process for identifying, measuring, and managing all risks prevalent or emerging in an
organization.
• Driven by all Board of Directors, senior management and staff.
• Widely applied in setting business strategies across the firm.
• Designed to limit the extent of various risks taken by the organization to ensure activities remain
within acceptable levels
• Designed to provide a reasonable assurance on achievement of core objectives of the
organization.
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19. Types of Risks in ERM
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20. 20
Principles of ERM
• Providing value to stakeholders
• Aligning business practices to achieve set corporate goals
• Enhancing the quality of decision-making across all ranks and files of the organization
• Minimizing operational shocks, volatilities and losses
• Identifying and managing multiple and correlated risks
• Identifying and proactively seizing opportunities
• Improving use of capital
ERM enables better management of uncertainties, associated risks and opportunities
whilst ensuring enhancement of the organization’s capacity to build value

21. Risk Management Process
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22. Risk Management Cycle
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Risk Management Basics
• Establish the required state of mind and culture for risk awareness organization-wide
• Involve people at all levels
• Provide necessary instructions, required training and tools for risk monitoring
• Develop and follow procedures for risk management
• Obtain input from all departments on an on-going basis
• Encourage prompt reporting of risk incidents and any relevant input from all stakeholders

24. ERM Benefits
Informed
Decision
Making
Better
Regulatory
Compliance
Comparative
Advantage
Increasing
Operational
Efficiency
High Brand
Equity
Reduced
Operating
Costs
Loss Reduction
Optimized
insurance
coverage and
premiums
High Customer
& Staff
Satisfaction
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25. LUNCH
BREAK
1 HOUR PLEASE
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26. OE&ERM
Achieving Sustainable Growth
& Performance
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27. ERM & OE Points of Congruence
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28. Key Takeaways
About ERM & OE
ONE:
Start at the Strategy
Planning Stage
TWO:
Focus on Making
Strategy Actionable
THREE:
Define Parameters for
Measuring Risk
Exposures &
Performance
FOUR:
Implement tools that are
Fit-for-Purpose for
Monitoring Risk and
Performance
FIVE:
Ensure Accountability
for All Business and
Operational Activities
SIX:
Ensure Prompt
Escalation of Adverse
Trends and Proper
Redress
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29. CASESTUDY
-THE BANKOF
NIGERIA
OE & ERM Alignment for
Business Success
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30. OE Case Study – The Bank Of Nigeria
The Bank Nigeria Ltd (TBN) relies on its various business activities for growth and profitability. This is achieved by focus
on the following:
• Increased Revenue and cost management,
• Customer retention and acquisitions,
• Process improvement and optimisation, and
• Human capital development.
These are the four broad pillars it focusses on to achieve its organisational performance. The key challenge for the bank is
improving and sustaining organisational performance. In the last 3 years from 2018 – 2021, this has not been achieved
owing to strong competitor manoeuvres, gaps in key operations of the bank and negative macroeconomic factors in
Nigeria. Furthermore, TBN has been impacted with skyrocketing cost-to-income ratios mainly caused by operating
expenses that have contributed to the resultant stunted growth for the bank and huge financial losses sometimes.
Other major factors include operational issues that are under the bank’s control, but the bank seemed not to have
measurement metrics for operational excellence to deliver on the organisational performance it aims to achieve. Financial
operational losses and compliance sanctions have been on the rise whilst overall productivity on the decline.
Obviously, there are gaps in the bank’s growth strategy.
You are reviewing the operations of this bank. What would you recommend to entrench organisational excellence at TBN.
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31. Typical Barriers to OE
External Barriers
• Lack of infrastructure,
• Limited or inadequate technologies,
• Gaps in organizational learning and training systems and
• Inappropriate or lack of government policy.
Internal Barriers
• Rigid policies and procedures,
• Laborious hierarchical and formal communication structures,
• Conservatism and conformity leading to risk-avoiding decisions,
• Resistance to change and lack of motivation to change status quo, and
• Neglect and misuse of talents within the organisation.
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32. Key Success Factors for Operational Excellence
• Leadership & Management;
• Human Resource Management practices;
• Operations Strategy;
• Organisational Culture, and
• Organisational Learning.
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33. Key Considerations
• Fit-for-Purpose Business and Operational Strategy
• Timely and informed decision-making at all levels (Strategic, Tactical and Operational)
• Innovation - Products, Process and Organizational Operating Model
• Automation
• Implementation of a proactive and robust Risk Management strategy
• Organizational learning strategy
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34. ERM & OE
TWO SIDES OF THE SAME
COIN
ENTERPRISE
RISK
MANAGEMENT
ORGANIZATIONAL
EXCELLENCE
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35. Thank You
LinkedIn
linkedin.com/in/enenioduwole
Email
enenioduwole@gmail.com
www.alter-ed.com.ng
Phone
+2349155198888
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