Chapter 12(Attached) presented the approach Intuit uses to measure the effectiveness of their ERM, and chapter 15(Attached) presented the process the City of Edmonton employed to develop and deploy th

ITS 835 Chapter 12

Measuring Performance at Intuit Enterprise Risk Management

Introduction

• Intuit’s ERM Journey
• ERM Maturity Model
• Benefits of Measuring Performance in ERM Models

• ERM Performance Measurement and Reporting
• Conclusion

Intuit’s ERM Journey

• Began with ad hoc risk management
• Very common entry point
• Escalated to ERM when seminal event occurred

• Desire was to stop firefighting and start prevention

• Intuit ERM Core Principles
• Enterprise-wide risk framework

• Risk assessment is ongoing
• Focus on most significant risks
• Ownership and accountability
• Measure and monitor performance

ERM Maturity Model

Benefits of Measuring Performance in ERM Models

• Key Performance Indicators (KPI)

• Based on business objectives

• Quantitative and qualitative KPI
• Leading and lagging indicators
• Input, process, and output indicators

• KPIs must be

• Tangible

• Flexible
• Standardized
• Outcome or objective focused

ERM Performance Measurement and Reporting

• First evolution - ERM process adoption

• Second evolution – Risk Mitigation Process Management

• Third Evolution – Multidimensional Risk Management Performance Measurement

ERM Process Adoption

Risk Mitigation Process Management

Multidimensional Risk Management Performance Measurement

Conclusion

• At Intuit, risk management is everyone’s responsibility

• ERM must be a core business competency
• Coordination is a key to success

• Recognizes
• Upside opportunity

• Downside risk

• ERM process is regularly audited
• ERM is an integral part of Intuit’s operating model