1. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 1 RIMS Risk Maturity Model (RMM) Webinar with RIMS Chapter Officers A Mutual Opportunity

2. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 2 A Virtual Presentation for Your Chapter Randy Besse – Saskatchewan Chapter Carol Fox – RIMS Steven Minsky – LogicManager

3. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 3 Answering the basic questions Carol Fox and Steve Minsky Who Provide an educational forum for your chapter members What Scheduled to meet your chapter needs When Wherever we can connect through the internet Where Using RIMS Adobe Connect platform How To provide a unique, sustainable, and practical experience Why

4. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 4 A Win-Win Proposition Chapter Wins Ready presentation Delivered virtually Something different Build chapter camaraderie Build more mature risk management practices within the chapter Encourage continuing dialogue RIMS Wins Greater use of the RIMS Risk Maturity Model Encourage friendly competition through regional benchmarking Build more mature risk management practices overall Delivers on its mission to make your organizations more successful

5. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 5 Poll: Have you taken the RIMS RMM Assessment? o Yes, multiple times o Yes, one time o Started once, but did not finish o No, never o Never heard of it before today

6. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 6 Delivering Value through RIMS Risk Maturity Model for Enterprise Risk Management

7. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 7 Agenda The Landscape The Plan Taking the RMM Assessment Using the Output A Proposition Questions

8. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 8 THE LANDSCAPE We can't solve problems by using the same kind of thinking we used when we created them. Albert Einstein

9. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 9 The Risk Professional: Balancing Risk and Reward Used with permission per RIMS license agreement with The Official Dilbert Store

10. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 10 The Evolving Role of the Risk Professional Source: RIMS and The IIA Risk Management and Audit: Forging a Collaborative Alliance 2012

11. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 11 What are the Implications for Risk Management? Proactive Reactive Objectives Focused Predictive Indicators Foresight Strategic Creates and captures value Event Focused Post Action Response After-thought Transactional Protects Value Expanding organizational risk management competencies

12. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 12 THE PLAN Any fool can know. The point is to understand. Albert Einstein

13. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 13 What Are Your Top Risks to Successful ERM? Disabling Culture Multiple Priorities Goal Confusion Execution Ability Whirlwind What stands in the way of successful ERM at your organization?

14. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 14 Make sure that there is a risk management system in place in each business that includes effective risk-control mechanisms as well as information systems that flow up to senior management Shape the risk principles and policies of the company, track the capital risk capacity of the company, define who is responsible for managing the specific risks within the organization, and provide a framework for judging the effectiveness of risk-taking You Need a Plan! What else? Quote Sources: Spencer Stuart

15. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 15 Why Use the RIMS Risk Maturity Model? Bridges the gap between theory and practice Guide to incremental improvement over time Measurable ERM value, based on priorities Addresses rating agency criteria on key attribute areas Can be used to build an ERM blueprint Creates value for the organization Career development tool Breadth of use Over 2,000 organizations Across multiple industries

16. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 16 Executive support within the corporate culture ERM-based approach Integration into business processes ERM process management Accountability within leadership and policy to guide decision-making Risk appetite management Linking outcomes with their sources Root cause discipline Analyzing and documenting risks and opportunities Uncovering risks Executing vision, mission and strategy utilizing risk metrics Performance management Integration into operational planning and execution Business resiliency and sustainability RIMS Risk Maturity Model for ERM The Seven Attributes

17. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 17 Common Elements from RIMS Review RIMS RMMISO 31000OCEGBS 31100COSOFERMASOLVENCY II ERM-based Approach XXXXXX Process Management XXXXXX Risk Appetite Management XXXXXX Root Cause Discipline XXX Uncovering Risks XXXXXX Performance Management XXXXX Business Resiliency and Sustainability XXXX Source: RIMS Executive Report: An Overview of Widely Used Risk Management Standards and Guidelines, 2011

18. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 18 Elements from RIMS RMM determine Your RMM Score

19. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 19 Silod Activities Goals Leverage risk-reward tradeoffs

20. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 20 Activities Goals Leverage risk-reward tradeoffs

21. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 21 TAKING THE RMM ASSESSMENT You never fail until you stop trying. Albert Einstein

22. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 22 RIMS Risk Maturity Model Begin from RIMS website

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24. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 24 Getting started is easy!

25. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 25 ERM assessment (example) Effectiveness Proactivity Coverage Select a score for each of the 3 evaluation criteria Evaluation criteria Partially Ad Hoc Somewhat Reactive Partially Uncertain Factor: Executive ERM support Indicators RIMS RMM indicators provide context for review Select each of the 25 Factors Completing the RMM assessment

26. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 26 RIMS Risk Maturity Model Structure Attributes Seven core areas of ERM that drive effectiveness Compatible with various specialized frameworks Risk competency measurement 25 factors and 68 indicators Objective evaluation criteria Key issues that differentiate maturity levels Maturity levels Five maturity levels Detailed descriptions unique for each attribute Measure to help reach goals for improvement Benchmarking Standing in peer group Highlights ERM trends and priorities Leadership Managed Repeatable Initial Ad hoc

27. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 27 USING THE OUTPUT The measure of intelligence is the ability to change. Albert Einstein

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29. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 29 Assessment describes the next level Each attribute is assigned a level Based on Your Responses

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31. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 31 Business Continuity Vendor Management Financial Reporting Compliance Information Security Compliance Identify & Assess ManageResponseOptions Monitor Business Process Strategic Objectives Business Results

32. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 32 A PROPOSITION In the middle of difficulty lies opportunity. Albert Einstein

33. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 33 Lets Make a Deal, Saskatchewan Chapter! Each of you complete the RIMS Risk Maturity Model Assessment by December 20 th. We will provide you with an aggregate Chapter Benchmarking Report for your January meeting o Standing in peer group o Highlighting ERM trends and potential priorities in your area

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35. Copyright 2012-2013 Risk and Insurance Management Society, Inc. 35 Contact Information Carol Fox, ARM Director of Strategic and Enterprise Risk Practice RIMS +1 212.655.6004 cfox@rims.org www.rims.org Steve Minksy CEO LogicManager +1 (617) 649-1321 Steven.Minsky@logicmanager.com