Course Objectives
By the end of the course, participants will be able to:
- Identify internal and external changes that will create risks to the organization
- Understand the relation with the board of directors through governance and improve Risk-Based Decision Making (RBDM)
- Influence internal controls by choosing the response to the risks identified
- Classify risk categories in the organization and identify the right authorities to manage them
- Analyze, assess and improve risk management practices within the organization
Course Outline
Introduction
- Risk perception
- Why should we care about risk
- Internal environment changes
- External environment changes
Risk management and corporate governance
- Introduction to corporate governance
- GRC concept: governance, risk and compliance
- GRC system: governance, risks and controls
- Risk management as part of corporate governance
- Governance failures
- Risk based decision making
Risk management and corporate control environment
- Risk management’s influence on designing internal controls
- Risk-based internal audit assessment of risk management performance
ERM and its evolution
- ERM evolution
- ERM benefits
ERM platform
- Strategic approach
- Operations and tactics
- Business reporting
- Compliance and process
Risk categories
- Strategic risks
- Reporting risks
- Financial risks
- Physical: life and safety risks
- Compliance
- Laws and regulations
- Financial reporting standards
Operations
- External environment: socioeconomic, regulations, technology and competition
- Internal environment: structure, processes and culture
ERM components
- Internal environment
- Objectives setting
- Event identification
- Risk assessment
- The black swan challenge
- Quantitative versus qualitative analysis
- Risk response
- Control activities
- Information and communication
- Risk monitoring