PRMIA Toronto Chapter Event The ALPHA and BETA of Corporate Governance and Risk Oversight

PRMIA Toronto Chapter Event

The ALPHA and BETA of Corporate Governance and

Risk OversightTuesday, March 8, 2011

Alex ToddTE Research

A division of Trust Enablement Inc.

Understanding Systemic Risk

Risk Management & Systemic Risk

Risk Management in a Complex World

Risk Management Innovation

Trust Enablementfor Risk Management 2.0

Strategic Corporate Governance

Corporate Governance ALPHA

Aspirational Corporate Governance

Extra Slides

What does the world look like?

Business Case

Regulators

Customers

Investors

Society

Risks & Uncertainties

REWARD POSSIBILITY

Risk Uncertainty

Risk-Reward & Uncertainty-Possibility

Tactical Risk Price gouging

Strategic Risk Premium brand

Systemic Risk Externalizing risk

Profiteering

High profit margins

Economic bubble

Risk REWARD

Tactical Uncertainty New market

Strategic Uncertainty New offering

Systemic Uncertainty New business model

Revenue growth

Competitive advantage

New value

Uncertainty POSSIBILITY

Trust Definitions

Trust is a person's willingness to accept and/or increase their vulnerability by relying

on implicit or explicit information.

Trust = Acceptable Uncertainty

Risk ManagementRisk Management 2.0

Trust Enablement® Framework

Experiential Sources of TrustPersonal experiences of the relying party or those of objective witnesses.

Motive ForcesFactors influencing the actions of the beneficiary (trusted party).

ProficienciesAptitude, knowledge, behaviour and disciplines employed to consistently deliver expected value (people, processes & technology).

Risk TransferenceMechanisms and processes that transfer risk away from the relying party.

Develop Trust Protect Trust

Interpretive Sources of TrustSubjective assertions of the source of the information or third parties.

EmpowermentRelying party’s ability to choose.

Certainty Acceptability

A Management Innovation

Trust Enablement® is both a management philosophy and a technology for business best practices. It fills a business

practices void by counterbalancing risk management based control mechanisms that preserve trust, with those that develop trust, and thereby provides a complementary, foundational, new management competency. It serves to

fundamentally change the leadership mindset from an inside-out to an outside-in orientation.

Maturity Model

Profit

Risk Management

Collaboration

Leadership

Sustainability

BUSINESS

Uncertainty

Golden Rule

Systemic Risk of Nations

Agenda GRC & Systemic Risk Risk-Reward & Uncertainty-Opportunity Trust Enablement & Risk Management 2.0 Applications Opportunities

Governance Risk & ComplianceDrives Principled Performance™ by enhancing corporate culture and integrating governance, risk management, and compliance processes.

Governance• set and evaluate

performance against objectives

• power to authorize a business strategy and model to achieve objectives

Risk Management • proactively identify and

rigorously assess and address potential obstacles to achieving objectives

• identify and address risks that the organization will step outside of mandated and voluntary boundaries

Culture• establish an organizational

climate and mind-sets of individuals that promote ethical behavior, trust, integrity and accountability

Compliance• proactively encourage and

require compliance with established policies and

• detect noncompliance and respond accordingly

Business Case

Governance

Risk Management

ERM

Compliance Programs

Ethics Programs

Compliance & Ethics

Programs

Culture

Social Responsibility

IT Governance

Objectives

“Ensure business is conducted within boundaries and that obstacles and uncertainty are appropriately addressed” - OCEG

ObjectivesOutcome Types

Desired Outcome Boundary Obstacle Uncertainty

Meet Business Objectives Revenue Legality Brand Customers

Enhance Leadership and Organizational Culture

Trust Integrity Insincerity Employees

Increase Stakeholder Confidence

Share value Insider trading Trust Investors

Prepare and Protect the Organization Avoid adversity Risk tolerance Adverse event Directors

Prevent, Detect and Deduce Adversity Mitigate damage Ethics Unethical

behaviour Directors

Motivate and Inspire Desired Conduct

Desired conduct Code of conduct Noncompliance Management

Improve Responsiveness and Efficiency

Speed & Quality Cost Agility Management

Optimize Economic and Social Value Value Resources Fair allocation Society

Systemic Risk

Agenda GRC & Systemic Risk Risk-Reward & Uncertainty-Opportunity Trust Enablement & Risk Management 2.0 Applications Opportunities

Agenda GRC & Systemic risk Risk-Reward & Uncertainty-Opportunity Trust Enablement & Risk Management 2.0 Applications Opportunities

Agenda GRC & Systemic risk Risk-Reward & Uncertainty-Opportunity Trust Enablement & Risk Management 2.0 Applications Opportunities

TrustEnablement.com

OfferingsPre-sales Thought

LeadershipTraining & Workshops

Research & Analysis

Consulting & Advisory

Public Policy & Economic Development √ √ √ √Corporate Governance & Investment √ √ √ √

Policy & Strategy √ √ √ √

Risk Management √ √ √ √Information Technology & Security √ √ √ √Online Transactions & Web 2.0 √ √ √ √Organizational Development & Change Management

√ √ √ √

Leadership, Collaboration & Innovation √ √ √ √

Marketing & Sales √ √ √ √

Supply Chain Management √ √ √ √

Public Policy & Economic Development

Corporate Governance & Investment

Policy & Strategy

Risk Management

Information Technology & Security

Online Transactions & Web 2.0

Organizational Development & Change Management

Leadership, Collaboration & Innovation

Marketing & Sales

Supply Chain Management

Other Initiatives

Collaboration Standards

Education

Advocacy

Agenda GRC & Systemic risk Risk-Reward & Uncertainty-Opportunity Trust Enablement & Risk Management 2.0 Applications Opportunities

Opportunity

How are we the cause in the matter?Alex Todd

Trust Enabling [email protected]