BENEFITS OF DOCUMENT
DESCRIPTION
There is increasing attention regarding the "overlap" of enterprise risk management (ERM) and enterprise performance management (EPM). The former refers to key risk and control indicators (KRIs and KCIs) and the latter to key performance indicators (KPIs). How do they fit together and produce synergy?
The past decade has demonstrated that the initial ERM focus on identifying, monitoring, and avoiding potential threats was too narrow, and ERM programs ended up disconnected from the value creation cycle. More recently, executives are realizing that to actually improve organizational results, ERM must integrate risk, strategic planning, and enterprise performance management.
There is a need to manage three categories of risk: (1) preventable risks, (2) strategy execution risks, and (3) external risks.
How should an organization apply an enterprise risk-based performance management framework to match risk exposure with risk appetite? The framework is designed to help answer strategic questions such as "where do we want to go, how will we get there, and how's our progress?" Organizations struggle with how to integrate a risk perspective into key business decision-making processes, and how to overcome the common pitfalls of integrating risk and enterprise performance management.
Failure to integrate enterprise risk management (ERM) and enterprise performance management (EPM) has hidden costs that prevent organizations from fully delivering on their value creation potential. What are the warning signs and root causes of common obstacles to integrating ERM and performance management? These may include:
• lack of a common understanding among managers as to what enterprise performance management (EPM) is and what it accomplishes
• lack of tools that enable managers to effectively link strategy to operations
• lack of analysis capabilities to support risk-adjusted performance management
• inability of cross-functional teams to align their risk-taking behavior to corporate strategy and better collaborate
This presentation is ideal for managers who have struggled to integrate ERM and EPM into their decision support systems. It provides a compelling call to action for those looking to champion EPM initiatives.
Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.
Source: Best Practices in Performance Management, Risk Management, Analytics PowerPoint Slides: Integrating Enterprise Performance and Risk Management PowerPoint (PPTX) Presentation, Gary Cokins
This document is available as part of the following discounted bundle(s):
Save %!
Analytics-Based Enterprise and Corporate Performance Management
This bundle contains 5 total documents. See all the documents to the right.
Performance Management ISO 9001 Goal Setting Objectives and Key Results Human Resources Problem Solving KPI Balanced Scorecard Data Monetization Data & Analytics Analytics Maturity Model Strategy Development Risk Management Benchmarking Psychology Diversity Employee Management Kaizen Lean Game Creativity Workshops Quality Management & Assurance Onboarding Strategy Deployment & Execution
Download our FREE Strategy & Transformation Framework Templates
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more. |