Governance Risk & Compliance Drives 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 OCEG graphic removed from this location Source: The term Principled Performance is a registered trademark of the non-profit think tank OCEG and is defined in their position paper, Red Book (see http://www.oceg.org/view/RB2Project). http://www.oceg.org/view/RB2Project
OCEG Business Case Governance Risk Management ERM Compliance Programs Ethics Programs Compliance & Ethics Programs Culture Social Responsibility IT Governance OCEG graphic removed from this location Source: OCEG
OCEG Objectives Ensure business is conducted within boundaries and that obstacles and uncertainty are appropriately addressed - OCEG OCEG graphic removed from this location Source: OCEG
OCEG Objectives Outcome Types Desired Outcome BoundaryObstacleUncertainty Meet Business Objectives RevenueLegalityBrandCustomers Enhance Leadership and Organizational Culture TrustIntegrityInsincerityEmployees Increase Stakeholder Confidence Share valueInsider tradingTrustInvestors Prepare and Protect the Organization Avoid adversityRisk toleranceAdverse eventDirectors Prevent, Detect and Deduce Adversity Mitigate damageEthics Unethical behaviour Directors Motivate and Inspire Desired Conduct Desired conductCode of conductNoncomplianceManagement Improve Responsiveness and Efficiency Speed & QualityCostAgilityManagement Optimize Economic and Social Value ValueResourcesFair allocationSociety
OCEG graphic removed from this location OCEG Business Case Regulators Customers Investors Society
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
Trust Enablement ® Framework Experiential Sources of Trust Personal experiences of the relying party or those of objective witnesses. Motive Forces Factors influencing the actions of the beneficiary (trusted party). Proficiencies Aptitude, knowledge, behaviour and disciplines employed to consistently deliver expected value (people, processes & technology). Risk Transference Mechanisms and processes that transfer risk away from the relying party. Develop TrustProtect Trust Interpretive Sources of Trust Subjective assertions of the source of the information or third parties. Empowerment Relying partys ability to choose. CertaintyAcceptability
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.