Workshop - introduction to risk management by Simon Franklin, Dequity Partners.

1. Risk Management Seminar
Workshop & Seminar
Your Facilitator:
Simon Franklin
Partner
Dequity Partners
Monday, 28 May 2012

2. Today’s Agenda
★Introduction
★Workshop Outline
★Learning Outcomes
★Discussion & Exercises
★Recap & Questions
★Follow-Up Requests
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

3. Introduction
★Background
★Your Workshop Leader
★Scope of Today’s Workshop
★Timing of Today’s Workshop
★RM Current Status
★Participants Background
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

4. Workshop Outline
★ Learning Outcomes
★ Facilitated Discussion
★ Governance Elements (pieces)
★ The RM Process (steps)
★ Risks & Controls (identification)
★ Risk Assessment (metrics)
★ Emerging Software Solutions
★ Hot Topics for 2011-2012
★ Recap & Conclusions
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

5. Learning Outcomes
★Practical Assistance & Contacts
★Sources of Reference
★Understand Standards
★Clarify RM Process / Method
★Build Awareness of Tools
★Hot Topics 2011-2012
★Increased Confidence
★Understand Pitfalls & Shortcuts
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

6. Governance Elements
Board & Management Responsibility
Governance Assurance
Legal External Audit
Risk Internal Audit
Compliance Performance & Quality
Business Disaster Physical
Continuity Recovery Security
Incident Information
Insurance
Management Security
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

7. Wrong Approaches
★ It was like it when I got
here.
★ If something goes wrong,
blame the guy next to
you.
★ No one saw me do it,
there's no way they can
prove anything!
★ Cover for me will you?
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

8. Decentralised Model
Board
Risk & Audit
CEO or MD Committee
Risk Manager
Internal Audit
Head of Business Unit or Quality
RM Coordinator
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

9. Centralised Model
Board
Risk & Audit
CEO or MD Committee
Risk Manager
Internal Audit
RM Resource Pool or Quality
Head of Business Unit
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

10. Structural Evolution
Model Structure & Responsibility Communication Reporting
Resources & Process
Centralised
Matrix
Decentralised
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

11. Benefits of Evolution
★Leveraging
★Efficiency
★Consistency
★Relationships with Business
Management
★Knowledge & Skills Sharing
★Administration of Systems &
Data
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

12. AS/NZS 4360:2004
★ Risk Management Process
1. Establish Context
Communicate & Consult
Monitor & Review
2. Identify Risks
3. Analyse Risks
4. Evaluate Risks
5. Treat Risks
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

13. Risks & Controls
★Context & Consistency
★Definitions
★Descriptions
★Linking
★Considerations
★Rating
★Library
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

14. Questions to Ask
★Can we reduce the risks?
★Can we get rid of the risks?
★How much will it cost?
★Is it worthwhile?
★Can one solution treat many
risks?
★Should we reduce controls?
★What’s it all going to cost?
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

15. Risk Assessment
★Inherent vs Residual
★Likelihood (Frequency) x
Impact (Consequence)
★Scale & Context (Appetite)
★Roll-up & Mapping
★Reporting
★Key Risk Indicators
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

16. Control Assessment
★Define Controls
★Identify Controls
★Control Types
★Control Rating
★Action Planning
★Control Monitoring
★Control Effectiveness
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

17. Exercise 1
★Risk Analysis
★15 mins to identify your:
★ Key Functions / Processes
★ Key Risks
★ Key Controls
★ Key Actions (Gaps)
★ Risk Map
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

18. Risk Management Tools
★Automated or Manual?
★What are the Options?
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

19. Risk Management Tools
★Verbal & Written
10-15 Years
★Word Processors
★Spreadsheets
★Databases
★Integrated Systems
★Smart Assurance
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

20. Standard Features
★ AS/NZS 4360 Framework
★ Risk Register (Rating)
★ Data Migration Capability
★ Organisation, Process or Project Structure
★ Windows Based Interface
★ Indicators & Measures
★ Access, Security & Audit Trail
★ User Training
★ Upgrades & Maintenance Included
★ Help Desk
★ Management Reporting
★ Centralised Control & Remote Use
★ In-House or Remotely Managed
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

21. Understanding the Benefits
★Standardised Approach
★Reduce Costs & Resources
★Secure with Auditable Trail
★Early Indicators (Decisions)
★Automated Management
Reports & Actions
★Targeted Risk & Audit Plan
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

22. Requirements Analysis
★ RM Objectives
★ Business Considerations
★ Technical Preferences
★ User Requirements
★ Vendor Preferences & Probity
★ Cost & Budget Allocation
★ Implementation Timetable
★ Ownership & Support
★ Key Features & Differentiators
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

23. Readiness Assessment
★ Existing Structure & Processes
★ Risk Context, Criteria & Rankings
★ Data Quality & Integrity
★ Indicators & Measures
★ Reports & Documents
★ Staff Awareness & Capability
★ Locations & Stakeholders
★ Technical Requirements &
Capacity
★ Gaps & Remedial Actions
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

24. Major Pitfalls
★Major Pitfalls:
★ Unclear objectives
★ Undefined scope
★ Lack of Data
★ Business not ready to adopt
★ Tool & resource limitations
★ Over reliance on 3rd Parties
★ Lack of ownership
★ Poor communication & training
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

25. Exercise 2
★Readiness Assessment
★15 mins to map your:
★ Risk Framework Elements
★ Risk Data Sources
★ Risk Management Reports
★ Risk Resources
★ Readiness to Adopt Tool
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

26. What’s Hot in 2006?
★Anti Money Laundering
★Fraud Risk Management
★Software Implementation
★Regulatory Reviews
★Evidenced Based RM
★Cost Reduction
★Insurance Premium Reduction
★Recruitment & Retention Pain
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

27. Recap
★Governance Elements
★Risk Management Process
★Risk & Control Identification
★Risk & Control Assessment
★Management Reporting
★Emerging Tools
★Hot Topics
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012

28. Contacts
Simon Franklin
Partner
T: +61 (2) 9258 1972
E: simon@dequitypartners.com.au
L: http://au.linkedin.com/in/simonfranklin
T: www.twitter.com/dequitypartners
www.dequitypartners.com.au
© Copyright Dequity Partners Pty Ltd 2012
Monday, 28 May 2012