By Deloitte & Touche LLP Dr. Patchin Curtis Mark Carey

Size: px
Start display at page:

Download "By Deloitte & Touche LLP Dr. Patchin Curtis Mark Carey"

Transcription

1 C o m m i t t e e o f S p o s o r i g O r g a i z a t i o s o f t h e T r e a d w a y C o m m i s s i o T h o u g h t L e a d e r s h i p i E R M R I S K A S S E S S M E N T I N P R A C T I C E By Deloitte & Touche LLP Dr. Patchi Curtis Mark Carey The iformatio cotaied herei is of a geeral ature ad based o authorities that are subject to chage. Applicability of the iformatio to specific situatios should be determied through cosultatio with your professioal adviser, ad this paper should ot be cosidered substitute for the services of such advisors, or should it be used as a basis for ay decisio or actio that may affect your orgaizatio.

2 Authors Deloitte & Touche LLP Pricipal Cotributors Dr. Patchi Curtis Director, Deloitte & Touche LLP Mark Carey Parter, Deloitte & Touche LLP COSO Board Members David L. Ladsittel COSO Chair Douglas F. Prawitt America Accoutig Associatio Richard F. Chambers The Istitute of Iteral Auditors Marie N. Hollei Fiacial Executives Iteratioal Chuck E. Lades America Istitute of CPAs (AICPA) Sadra Richtermeyer Istitute of Maagemet Accoutats Preface This project was commissioed by the Committee of Sposorig Orgaizatios of the Treadway Commissio (COSO), which is dedicated to providig thought leadership through the developmet of comprehesive frameworks ad guidace o eterprise risk maagemet, iteral cotrol, ad fraud deterrece desiged to improve orgaizatioal performace ad goverace ad to reduce the extet of fraud i orgaizatios. COSO is a private-sector iitiative joitly sposored ad fuded by the followig orgaizatios: America Accoutig Associatio (AAA) America Istitute of CPAs (AICPA) Fiacial Executives Iteratioal (FEI) The Istitute of Maagemet Accoutats (IMA) The Istitute of Iteral Auditors (IIA) Committee of Sposorig Orgaizatios of the Treadway Commissio

3 T h o u g h t L e a d e r s h i p i E R M Research Commissioed by Committee of Sposorig Orgaizatios of the Treadway Commissio October 2012

4 Copyright 2012, The Committee of Sposorig Orgaizatios of the Treadway Commissio (COSO) PIP All Rights Reserved. No part of this publicatio may be reproduced, redistributed, trasmitted or displayed i ay form or by ay meas without writte permissio. For iformatio regardig licesig ad reprit permissios please cotact the America Istitute of Certified Public Accoutats licesig ad permissios aget for COSO copyrighted materials. Direct all iquiries to or AICPA, Att: Maager, Rights ad Permissios, 220 Leigh Farm Rd., Durham, NC Telephoe iquiries may be directed to

5 Thought Leadership i ERM Risk Assessmet i Practice iii Cotets Page Itroductio 1 The Risk Assessmet Process 2 Develop Assessmet Criteria 3 Assess Risks 8 Assess Risk Iteractios 1 2 Prioritize Risks 1 4 Puttig It ito Practice 18 About COSO 19 About the Authors 19

6

7 Thought Leadership i ERM Risk Assessmet i Practice 1 Itroductio Value is a fuctio of risk ad retur. Every decisio either icreases, preserves, or erodes value. Give that risk is itegral to the pursuit of value, strategic-mided eterprises do ot strive to elimiate risk or eve to miimize it, a perspective that represets a critical chage from the traditioal view of risk as somethig to avoid. Rather, these eterprises seek to maage risk exposures across all parts of their orgaizatios so that, at ay give time, they icur just eough of the right kids of risk o more, o less to effectively pursue strategic goals. This is the sweet spot, or optimal risk-takig zoe, referred to i exhibit 1. That s why risk assessmet is importat. It s the way i which eterprises get a hadle o how sigificat each risk is to the achievemet of their overall goals. To accomplish this, eterprises require a risk assessmet process that is practical, sustaiable, ad easy to uderstad. The process must proceed i a structured ad disciplied fashio. It must be correctly sized to the eterprise s size, complexity, ad geographic reach. While eterprise-wide risk maagemet (ERM) is a relatively ew disciplie, 1 applicatio techiques have bee evolvig over the last decade. The purpose of this paper is to provide leadership with a overview of risk assessmet approaches ad techiques that have emerged as the most useful ad sustaiable for decisio-makig. It represets aother i a series of papers published by Committee of Sposorig Orgaizatios of the Treadway Commissio (COSO) aimed at helpig orgaizatios move up the maturity curve i their ogoig developmet of a robust ERM process. Exhibit 1: Optimal Risk-Takig Isufficiet Risk-Takig Optimal Risk-Takig Excessive Risk-Takig Expected Eterprise Value Sweet Spot Risk Level 1 Committee of Sposorig Orgaizatios of the Treadway Commissio (COSO) Eterprise Risk Maagemet Itegrated Framework, 2004.

8 2 Risk Assessmet i Practice Thought Leadership i ERM The Risk Assessmet Process Withi the COSO ERM framework, 2 risk assessmet follows evet idetificatio ad precedes risk respose. Its purpose is to assess how big the risks are, both idividually ad collectively, i order to focus maagemet s attetio o the most importat threats ad opportuities, ad to lay the groudwork for risk respose. Risk assessmet is all about measurig ad prioritizig risks so that risk levels are maaged withi defied tolerace thresholds without beig overcotrolled or forgoig desirable opportuities. Evets that may trigger risk assessmet iclude the iitial establishmet of a ERM program, a periodic refresh, the start of a ew project, a merger, acquisitio, or divestiture, or a major restructurig. Some risks are dyamic ad require cotiual ogoig moitorig ad assessmet, such as certai market ad productio risks. Other risks are more static ad require reassessmet o a periodic basis with ogoig moitorig triggerig a alert to reassess sooer should circumstaces chage. Exhibit 2: Assess Risks Process Flow Diagram Assess Risks Idetify Risks Develop Assessmet Criteria Assess Risks Assess Risk Iteractios Prioritize Risks Respod to Risks Idetify risks. The risk (or evet) idetificatio process precedes risk assessmet ad produces a comprehesive list of risks (ad ofte opportuities as well), orgaized by risk category (fiacial, operatioal, strategic, compliace) ad sub-category (market, credit, liquidity, etc.) for busiess uits, corporate fuctios, ad capital projects. At this stage, a wide et is cast to uderstad the uiverse of risks makig up the eterprise s risk profile. While each risk captured may be importat to maagemet at the fuctio ad busiess uit level, the list requires prioritizatio to focus seior maagemet ad board attetio o key risks. This prioritizatio is accomplished by performig the risk assessmet. Develop assessmet criteria. The first activity withi the risk assessmet process is to develop a commo set of assessmet criteria to be deployed across busiess uits, corporate fuctios, ad large capital projects. Risks ad opportuities are typically assessed i terms of impact ad likelihood. May eterprises recogize the utility of evaluatig risk alog additioal dimesios such as vulerability ad speed of oset. Assess risks. Assessig risks cosists of assigig values to each risk ad opportuity usig the defied criteria. This may be accomplished i two stages where a iitial screeig of the risks is performed usig qualitative techiques followed by a more quatitative aalysis of the most importat risks. Assess risk iteractios. Risks do ot exist i isolatio. Eterprises have come to recogize the importace of maagig risk iteractios. Eve seemigly isigificat risks o their ow have the potetial, as they iteract with other evets ad coditios, to cause great damage or create sigificat opportuity. Therefore, eterprises are gravitatig toward a itegrated or holistic view of risks usig techiques such as risk iteractio matrices, bow-tie diagrams, ad aggregated probability distributios. Prioritize risks. Risk prioritizatio is the process of determiig risk maagemet priorities by comparig the level of risk agaist predetermied target risk levels ad tolerace thresholds. Risk is viewed ot just i terms of fiacial impact ad probability, but also subjective criteria such as health ad safety impact, reputatioal impact, vulerability, ad speed of oset. Respod to risks. The results of the risk assessmet process the serve as the primary iput to risk resposes whereby respose optios are examied (accept, reduce, share, or avoid), cost-beefit aalyses performed, a respose strategy formulated, ad risk respose plas developed. Discussios of evet idetificatio ad risk respose are beyod the scope of this paper. For detailed treatmet, refer to the COSO Eterprise Risk Maagemet Itegrated Framework (2004). 2 COSO, Eterprise Risk Maagemet Itegrated Framework (2004).

9 Thought Leadership i ERM Risk Assessmet i Practice 3 Develop Assessmet Criteria Traditioal risk aalysis defies risk as a fuctio of likelihood ad impact. Ideed, these are importat measures. However, ulikely evets occur all too ofte, ad may likely evets do t come to pass. Worse, ulikely evets ofte occur with astoishig speed. Likelihood ad impact aloe do ot pait the whole picture. To aswer questios like how fast could the risk arise, how fast could you respod or recover, ad how much dowtime could you tolerate, you eed to gauge vulerability ad speed of oset. By gaugig how vulerable you are to a evet, you develop a picture of your eeds. By gaugig how quickly it could happe, you uderstad the eed for agility ad rapid adaptatio. Developig Assessmet Scales Some form of measuremet of risk is ecessary. Without a stadard of compariso, it s simply ot possible to compare ad aggregate risks across the orgaizatio. Most orgaizatios defie scales for ratig risks i terms of impact, likelihood, ad other dimesios. These scales comprise ratig levels ad defiitios that foster cosistet iterpretatio ad applicatio by differet costituecies. The more descriptive the scales, the more cosistet their iterpretatio will be by users. The trick is to fid the right balace betwee simplicity ad comprehesiveess. Scales should allow meaigful differetiatio for rakig ad prioritizatio purposes. Five poit scales yield better dispersio tha three poit scales. Te poit scales imply precisio typically uwarrated i qualitative aalysis, ad assessors may waste time tryig to differetiate betwee a ratig of six or seve whe the differece is icosequetial ad idefesible. Illustrative scales are provided for impact, likelihood, vulerability, ad speed of oset. Every eterprise is differet ad the scales should be customized to fit the idustry, size, complexity, ad culture of the orgaizatio i questio. Impact Impact (or cosequece) refers to the extet to which a risk evet might affect the eterprise. Impact assessmet criteria may iclude fiacial, reputatioal, regulatory, health, safety, security, evirometal, employee, customer, ad operatioal impacts. Eterprises typically defie impact usig a combiatio of these types of impact cosideratios (as illustrated below), give that certai risks may impact the eterprise fiacially while other risks may have a greater impact to reputatio or health ad safety. Whe assigig a impact ratig to a risk, assig the ratig for the highest cosequece aticipated. For example, if ay oe of the criteria for a ratig of 5 is met, the the impact ratig assiged is 5 eve though other criteria may fall lower i the scale. Some etities defie impact scales for opportuities as well as risks.

10 4 Risk Assessmet i Practice Thought Leadership i ERM Illustrative Impact Scale Ratig Descriptor Defiitio 5 Extreme Fiacial loss of $X millio or more 3 Iteratioal log-term egative media coverage; game-chagig loss of market share Sigificat prosecutio ad fies, litigatio icludig class actios, icarceratio of leadership Sigificat ijuries or fatalities to employees or third parties, such as customers or vedors Multiple seior leaders leave 4 Major Fiacial loss of $X millio up to $X millio Natioal log-term egative media coverage; sigificat loss of market share Report to regulator requirig major project for corrective actio Limited i-patiet care required for employees or third parties, such as customers or vedors Some seior maagers leave, high turover of experieced staff, ot perceived as employer of choice 3 Moderate Fiacial loss of $X millio up to $X millio Natioal short-term egative media coverage Report of breach to regulator with immediate correctio to be implemeted Out-patiet medical treatmet required for employees or third parties, such as customers or vedors Widespread staff morale problems ad high turover 2 Mior Fiacial loss of $X millio up to $X millio Local reputatioal damage Reportable icidet to regulator, o follow up No or mior ijuries to employees or third parties, such as customers or vedors Geeral staff morale problems ad icrease i turover 1 Icidetal Fiacial loss up to $X millio Local media attetio quickly remedied Not reportable to regulator No ijuries to employees or third parties, such as customers or vedors Isolated staff dissatisfactio 3 Fiacial impact is typically measured i terms of loss or gai, profitability or earigs, or capital.

11 Thought Leadership i ERM Risk Assessmet i Practice 5 Likelihood Likelihood represets the possibility that a give evet will occur. Likelihood ca be expressed usig qualitative terms (frequet, likely, possible, ulikely, rare), as a percet probability, or as a frequecy. Whe usig umerical values, whether a percetage or frequecy, the relevat time period should be specified such as aual frequecy or the more relative probability over the life of the project or asset. Sometimes eterprises describe likelihood i more persoal ad qualitative terms such as evet expected to occur several times over the course of a career or evet ot expected to occur over the course of a career. Illustrative Likelihood Scale Ratig Aual Frequecy Descriptor Defiitio Probability Descriptor Defiitio 5 Frequet Up to oce i 2 years or more 4 Likely Oce i 2 years up to oce i 25 years 3 Possible Oce i 25 years up to oce i 50 years 2 Ulikely Oce i 50 years up to oce i 100 years 1 Rare Oce i 100 years or less Almost certai Likely Possible Ulikely Rare 90% or greater chace of occurrece over life of asset or project 65% up to 90% chace of occurrece over life of asset or project 35% up to 65% chace of occurrece over life of asset or project 10% up to 35% chace of occurrece over life of asset or project <10% chace of occurrece over life of asset or project

12 6 Risk Assessmet i Practice Thought Leadership i ERM Vulerability Vulerability refers to the susceptibility of the etity to a risk evet i terms of criteria related to the etity s preparedess, agility, ad adaptability. Vulerability is related to impact ad likelihood. The more vulerable the etity is to the risk, the higher the impact will be should the evet occur. If risk resposes icludig cotrols are ot i place ad operatig as desiged, the the likelihood of a evet icreases. Assessig vulerability allows etities to gauge how well they re maagig risks. Vulerability assessmet criteria may iclude capabilities to aticipate evets such as sceario plaig, real optios, 4 capabilities to prevet evets such as risk resposes i place, capabilities to respod ad adapt quickly as evets ufold, ad capabilities to withstad the evet such as capital buffer ad fiacial stregth. Other factors ca also be cosidered such as the rate of chage i the idustry or orgaizatio. There is o oe-size-fits-all assessmet scale. Every etity must defie scales to meet its eeds. Illustrative Vulerability Scale Ratig Descriptor Defiitio 5 Very High No sceario plaig performed Lack of eterprise level/process level capabilities to address risks Resposes ot implemeted No cotigecy or crisis maagemet plas i place 4 High Sceario plaig for key strategic risks performed Low eterprise level/process level capabilities to address risks Resposes partially implemeted or ot achievig cotrol objectives Some cotigecy or crisis maagemet plas i place 3 Medium Stress testig ad sesitivity aalysis of scearios performed Medium eterprise level/process level capabilities to address risks Resposes implemeted ad achievig objectives most of the time Most cotigecy ad crisis maagemet plas i place, limited rehearsals 2 Low Strategic optios defied Medium to high eterprise level/process level capabilities to address risks Resposes implemeted ad achievig objectives except uder extreme coditios Cotigecy ad crisis maagemet plas i place, some rehearsals 1 Very Low Real optios deployed to maximize strategic flexibility High eterprise level/process level capabilities to address risks Redudat respose mechaisms i place ad regularly tested for critical risks Cotigecy ad crisis maagemet plas i place ad rehearsed regularly 4 A real optio is a optio ivolvig real, as opposed to fiacial, assets. Real assets iclude lad, plat, ad machiery. Real optio aalysis uses optio pricig theory to value capital ivestmet opportuities. A example of a real optio would be the overbuildig of a facility to provide strategic flexibility i the evet that demad were to icrease faster tha productio capacity.

13 Thought Leadership i ERM Risk Assessmet i Practice 7 Speed of Oset (or Velocity) Speed of oset refers to the time it takes for a risk evet to maifest itself, or i other words, the time that elapses betwee the occurrece of a evet ad the poit at which the compay first feels its effects. Kowig the speed of oset is useful whe developig risk respose plas. Illustrative Speed of Oset Scale Ratig Descriptor Defiitio 5 Very High Very rapid oset, little or o warig, istataeous 4 High Oset occurs i a matter of days to a few weeks 3 Medium Oset occurs i a matter of a few moths 2 Low Oset occurs i a matter of several moths 1 Very Low Very slow oset, occurs over a year or more Iheret ad Residual Risk Whe assessig risks, it s importat to determie whether respodets will be asked to assess iheret risk, residual risk, or both. I Eterprise Risk Maagemet Itegrated Framework (2004), COSO defies iheret risk as the risk to a etity i the absece of ay actios maagemet might take to alter either the risk s likelihood or impact. Residual risk is the risk remaiig after maagemet s respose to the risk. Applyig this cocept is trickier tha it might seem at first glace. Some etities iterpret iheret risk to be level of risk assumig resposes curretly i place fail, ad residual risk to be the level of risk assumig existig resposes operate accordig to desig. Other etities iterpret iheret risk to be the curret level of risk assumig existig resposes operate accordig to desig ad residual to be the estimated risk after resposes uder cosideratio are put ito place. The first approach is focused more o cotrols effectiveess of the curret eviromet ad the secod approach o evaluatig risk respose optios. There is o oe right aswer ad either approach may be useful depedig upo the purpose of the assessmet ad the ature of the risks beig cosidered.

14 8 Risk Assessmet i Practice Thought Leadership i ERM Assess Risks Risk assessmet is ofte performed as a two-stage process. A iitial screeig of the risks ad opportuities is performed usig qualitative techiques followed by a more quatitative treatmet of the most importat risks ad opportuities ledig themselves to quatificatio (ot all risks are meaigfully quatifiable). Qualitative assessmet cosists of assessig each risk ad opportuity accordig to descriptive scales as described i the previous sectio. Quatitative aalysis requires umerical values for both impact ad likelihood usig data from a variety of sources. The quality of the aalysis depeds o the accuracy ad completeess of the umerical values ad the validity of the models used. Model assumptios ad ucertaity should be clearly commuicated ad evaluated usig techiques such as sesitivity aalysis. Both qualitative ad quatitative techiques have advatages ad disadvatages. Most eterprises begi with qualitative assessmets ad develop quatitative capabilities over time as their decisio-makig eeds dictate. Measuremet Techiques Compariso Techique Qualitative Quatitative Advatages Is relatively quick ad easy Provides rich iformatio beyod fiacial impact ad likelihood such as vulerability, speed of oset, ad o-fiacial impacts such as health ad safety ad reputatio Is easily uderstood by a large umber of employees who may ot be traied i sophisticated quatificatio techiques Allows umerical aggregatio takig ito accout risk iteractios whe usig a at risk measure such as Cash Flow at Risk Permits cost-beefit aalysis of risk respose optios Eables risk-based capital allocatio to busiess activities with optimal risk-retur Helps compute capital requiremets to maitai solvecy uder extreme coditios Disadvatages Gives limited differetiatio betwee levels of risk (i.e. very high, high, medium, ad low) Is imprecise risk evets that plot withi the same risk level ca represet substatially differet amouts of risk Caot umerically aggregate or address risk iteractios ad correlatios Provides limited ability to perform cost-beefit aalysis Ca be time-cosumig ad costly, especially at first durig model developmet Must choose uits of measure such as dollars ad aual frequecy which may result i qualitative impacts beig overlooked Use of umbers may imply greater precisio tha the ucertaity of iputs warrats Assumptios may ot be apparet

15 Thought Leadership i ERM Risk Assessmet i Practice 9 For qualitative assessmets, the most commoly used assessmet techiques are iterviews, cross-fuctioal workshops, surveys, bechmarkig, ad sceario aalysis. Quatitative techiques rage from bechmarkig ad sceario aalysis to geeratig forward lookig poit estimates (determiistic models) ad the to geeratig forward lookig distributios (probabilistic models). Some of the most powerful probabilistic models from a eterprise-wide stadpoit iclude causal at-risk models used to estimate gross profit margis, cash flows, or earigs over a give time horizo at give cofidece levels. Aalysis of Existig Data Reviewig iteral ad exteral data ca help idividuals assess the likelihood ad impact of a risk or opportuity. Sources of risk occurrece data iclude iteral ad exteral audit reports, public filigs, isurace claims ad iteral loss evet data icludig ear misses, published reports by isurace compaies, idustry cosortia, ad research orgaizatios. While relyig o existig data provides objectivity, it s importat to evaluate the relevace of the data uder curret ad projected coditios. Adjustmets may be warrated usig expert judgmet. I these cases, the ratioale for adjustmets must be clearly documeted ad commuicated. Iterviews ad Cross-Fuctioal Workshops Assessmet ca be coducted through oe-o-oe iterviews or facilitated meetigs. Cross-fuctioal workshops are preferable to iterviews or surveys for assessmet purposes as they facilitate cosideratio of risk iteractios ad break dow siloed thikig. Workshops improve uderstadig of a risk by brigig together diverse perspectives. For example, whe cosiderig a risk such as iformatio security breach, workshop participats from iformatio techology, legal ad compliace, public relatios, customer service, strategic plaig, ad operatios maagemet may each brig differet iformatio regardig causes, cosequeces, likelihoods, ad risk iteractios. Iterviews may be more appropriate for seior maagemet, board members, ad seior lie maagers due to their time costraits. Workshops may ot work well i cultures that suppress free sharig of iformatio or diverget opiios. Surveys Surveys are useful for large, complex, ad geographically distributed eterprises or where the culture suppresses ope commuicatio. Survey results ca be dowloaded ito aalytical tools allowig risks ad opportuities to be viewed by level (board members, executives, maagers), by busiess uit, by geography, or by risk category. Surveys have drawbacks too. Respose rates ca be low. If the survey is aoymous, it may be difficult to idetify iformatio gaps. Quality of resposes may be low if respodets give survey questios superficial attetio i a rush to completio, or if they misuderstad somethig ad do t have the opportuity to ask clarifyig questios. But perhaps most of all, respodets do t beefit from cross-fuctioal discussios which ehace people s risk awareess ad uderstadig, provide cotext ad iformatio to support the risk ratigs, ad aalyze risk iteractios across silos. For these reasos, surveys should ot be cosidered a substitute for workshops ad other techiques for i-depth aalysis of key risks. Bechmarkig Bechmarkig is a collaborative process amog a group of etities. Bechmarkig focuses o specific evets or processes, compares measures ad results usig commo metrics, ad idetifies improvemet opportuities. Data o evets, processes, ad measures are developed to compare performace. Some compaies use bechmarkig to assess the likelihood ad impact of potetial evets across a idustry. Bechmarkig data are available from research orgaizatios, idustry cosortia, isurace compaies ad ratig agecies, govermet agecies, ad regulatory ad supervisory bodies. For example, a oil field services compay might bechmark its safety risk usig measures such as lost time ijuries usig data for similar compaies available from the Bureau of Labor Statistics, the Occupatioal Health ad Safety Admiistratio (OSHA), the America Petroleum Istitute (API), or others.

16 10 Risk Assessmet i Practice Thought Leadership i ERM Sceario Aalysis Sceario aalysis has log bee recogized for its usefuless i strategic plaig. It is also useful for assessig risks ad tyig them back to strategic objectives. It etails defiig oe or more risk scearios, detailig the key assumptios (coditios or drivers) that determie the severity of impact, ad estimatig the impact o a key objective. I the example below, maagemet wated to uderstad how earigs could be egatively impacted. Six scearios impactig earigs were idetified, causal factors (such as price or volume chages or state of the ecoomy) determied, detailed assumptios calibrated, ad the earigs impact estimated. Scearios ca be developed joitly by risk owers ad ERM persoel ad built out ad validated with specialists from various fuctios ad maagemet. Sceario Aalysis Sceario Descriptio Detailed Assumptios EBIT* Impact ($MM) 1) Currecy chages impact 15% volume decrease - $500 competitive ladscape 20% price decrease Sustaied for 9 moths Recovery takes additioal 9 moths 2) Natural gas prices icrease $5/MM Btu icrease - $150 Sustaied for 12 moths No ability to pass through icrease 3) Crude oil prices icrease 100% icrease - $15 Sustaied for 3 moths Pass through 25% of cost icrease 4) Techology shift 15% volume decrease/year - $275 15% price decrease/year $2MM less i R&D expeditures 5) Competitive pressure 10% price decrease - $200 Sustaied for 24 moths 6) Supply chai disruptio 10% volume decrease - $175 Sustaied for 6 moths * Earigs before iterest ad taxes. Source: Frederick Fusto ad Stephe Wager, Survivig ad Thrivig i Ucertaity (Hoboke, NJ: Joh Wiley & Sos, Ic., 2010), 69.

17 Thought Leadership i ERM Risk Assessmet i Practice 11 Causal At-Risk Models Gross Margi at Risk (GMaR), Cash Flow at Risk (CFaR), ad Earigs at Risk (EaR) are metrics built o causal models where specific risk factors drive future ucertaity of key cash flow or earigs compoets. Each risk factor ca be modeled i detail ad icorporated ito the overall model. Usig a causal at-risk model ca provide isight ito how historical relatioships might become ucoupled ad deviate meaigfully from expectatios. Armed with the kowledge of how each risk factor could vary i the future ad impact cash flow or earigs, risk ca be better measured ad maaged. It is the added isight of the risk factors drivig ucertaity that makes causal models a step up from simply extrapolatig past relatioships i a pro forma approach. Model iputs may be derived from past records, relevat experiece, relevat published literature, market research, public cosultatio, experimets ad prototypes, ad ecoomic, egieerig or other models. Where historical data are ot available, ot relevat, or icomplete, expert elicitatio may be used. Expert elicitatio is most commoly used to estimate reasoable probabilities especially for low likelihood, high impact evets. Experts are valuable sources of iformatio ad kowledge. But experts also brig biases. Fortuately, a large body of kowledge exists with regard to heuristics ad biases ad ways to address them. For example, see COSO s recetly issued thought paper, Ehacig Board Oversight: Avoidig Judgmet Traps ad Biases (March 2012). I reality, both pro forma models built aroud historical ratios ad causal at-risk models ca be helpful ad should be see as complemetary views of a ucertai future. Regardless of the type of model, the cofidece placed o estimates of levels of risk ad assumptios made i the aalysis should be clearly stated.

18 12 Risk Assessmet i Practice Thought Leadership i ERM Assess Risk Iteractios ERM eables a itegrated ad holistic view of risks. The key here is that the whole does ot equal the sum of the parts. To uderstad portfolio risk, oe must uderstad the risks of the idividual elemets plus their iteractios due to the presece of atural hedges ad mutually amplifyig risks. Uderstadig risk iteractios ad the maagig them requires breakig dow silos. A simple way to cosider risk iteractios is to group related risks ito a broad risk area (such as groupig risks related to sourcig, distributio chaels, vedor cocetratios, etc. ito supply chai risk) ad the assigig owership ad oversight for the risk area. Three explicit ways to capture risk iteractios icreasig i level of complexity ad richess of iformatio are risk iteractio maps, correlatio matrices, ad bow-tie diagrams. Risk Iteractio Map A risk iteractio map is the simplest form of graphical represetatio i which the same list of risks form the x ad y axes. Risk iteractios are the idicated by a X or other qualitative idicator. Exhibit 3: Illustrative Risk Iteractio Map Risk Supply Chai Disruptio Customer Preferece Shift Copper Price Icrease >25% Work Stoppage >1 Week Ecoomic Dowtur Supplier Cosolidatio Local Competitor Eters Market New Substitutes Available Cost of Capital Icrease >5% Tighter Emissio Stadards FCPA Violatio Exchage Rate Fluctuatios Supply Chai Disruptio Customer Preferece Shift Copper Price Icrease >25% Work Stoppage >1 Week Ecoomic Dowtur Supplier Cosolidatio Local Competitor Eters Market New Substitutes Available Cost of Capital Icrease >5% Tighter Emissio Stadards FCPA Violatio Exchage Rate Fluctuatios

19 Thought Leadership i ERM Risk Assessmet i Practice 13 Where historical data are available, risk iteractios ca be expressed quatitatively usig a correlatio matrix. This is a especially useful techique to apply withi a risk category such as market risk. Difficulties i determiig correlatios for risks iclude the possibility that past causal relatioships will ot be idicative of future relatioships, lack of historical data, differeces i time frames (short-, medium-, ad log-term), ad the large umbers of risks required for a eterprise-wide assessmet. Developig the Full Picture Fault Trees, Evet Trees, ad Bow-Tie Diagrams Diagrams that break a complex risk occurrece ito its compoet parts showig the chais of evets that could lead to or result from the occurrece ca be idispesable for idetificatio ad assessmet of risk resposes ad key risk idicators. The diagrams ca be qualitative or serve as the basis for quatitative models. Three commoly used diagrams are fault trees, evet trees, ad bow-ties. Fault trees are used for aalyzig evets or combiatios of evets that might lead to a hazard or a evet. Evet trees are used for modelig sequeces of evets arisig from a sigle risk occurrece. A bow-tie diagram combies a fault tree ad a evet tree ad takes its ame from its shape. Probabilistic models built o bow-tie diagrams are versatile for quatifyig iheret ad residual risk levels ad performig what-if, sceario, ad sesitivity aalyses. Exhibit 4: Bow-Tie Diagram Risk Factors Risk Cosequeces Trigger Evet Itermediate Evet Ed Evet Cosequece Ed Evet (Loss) Trigger Evet Itermediate Evet Ed Evet Cosequece Ed Evet (Loss) Itermediate Evet Ed Evet Cosequece Ed Evet (Loss) Itermediate Evet Ed Evet Risk Cosequece Ed Evet (Loss) Coditio Itermediate Evet Ed Evet Cosequece Ed Evet (Loss) Coditio Itermediate Evet Ed Evet Cosequece Ed Evet (Loss) Coditio Itermediate Evet Ed Evet Cosequece Ed Evet (Loss) Note: The terms fault tree, evet tree, ad bow-tie diagram are sometimes used iterchageably.

20 14 Risk Assessmet i Practice Thought Leadership i ERM Prioritize Risks Oce the risks have bee assessed ad their iteractios documeted, it s time to view the risks as a comprehesive portfolio to eable the ext step prioritizig for risk respose ad reportig to differet stakeholders. The term risk profile represets the etire portfolio of risks facig the eterprise. Some etities represet this portfolio as a hierarchy, some as a collectio of risks plotted o a heat map. Etities with more mature ERM programs ad quatitative capabilities may aggregate idividual risk distributios ito a cumulative loss probability distributio ad refer to that as the risk profile. Similar to assessig risks, rakig ad prioritizig is ofte doe i a two-step process. First, the risks are raked accordig to oe, two, or more criteria such as impact ratig multiplied by likelihood ratig or impact multiplied by vulerability. Secod, the raked risk order is reviewed i light of additioal cosideratios such as impact aloe, speed of oset, or the size of the gap betwee curret ad desired risk level (risk tolerace threshold). If the iitial rakig is doe by multiplyig fiacial loss by likelihood, the the fial prioritizatio should take qualitative factors ito cosideratio. Hierarchies ad Rollig Up ad Drillig Dow The simplest way to aggregate risks is to orgaize them accordig to a hierarchy. This is ofte doe i risk maagemet systems where risks ca be orgaized by orgaizatioal uit, risk type, geography, or strategic objective. The better systems allow users to roll up ad drill dow for aalysis ad reportig. This provides a complete listig of the assessed risks but does ot help with prioritizig. Exhibit 5: Risk Hierarchies Risk Hierarchy by Org. Uit Risk Hierarchy by Risk Type Eterprise Eterprise Busiess Uit 1 Strategic Risk ABC Risk ABC Risk DEF Risk ABC i Bus. Uit 1 Project 1 Fiacial Risk ABC i Bus. Uit 2 Risk UVW Risk DEF Risk XYZ Risk DEF i Bus. Uit 1 Project 2 Risk UVW Risk XYZ Busiess Uit 2 Risk ABC Risk GHI Risk JKL Risk GHI Risk GHI i Bus. Uit 2 Operatioal Risk UVW Risk UVW i Project 1 Risk UVW i Project 2 Risk DEF Risk DEF i Bus. Uit 1 Compliace Risk...

A Valuable Tool to Understand and Manage Your Compliance Risks

A Valuable Tool to Understand and Manage Your Compliance Risks A Valuable Tool to Uderstad ad Maage Your Compliace Risks The Uique Alterative to the Big Four Compliace is icreasigly beig idetified as a key risk withi a orgaizatio s eterprise risk maagemet (ERM) programs.

More information

*The most important feature of MRP as compared with ordinary inventory control analysis is its time phasing feature.

*The most important feature of MRP as compared with ordinary inventory control analysis is its time phasing feature. Itegrated Productio ad Ivetory Cotrol System MRP ad MRP II Framework of Maufacturig System Ivetory cotrol, productio schedulig, capacity plaig ad fiacial ad busiess decisios i a productio system are iterrelated.

More information

INVESTMENT PERFORMANCE COUNCIL (IPC) Guidance Statement on Calculation Methodology

INVESTMENT PERFORMANCE COUNCIL (IPC) Guidance Statement on Calculation Methodology Adoptio Date: 4 March 2004 Effective Date: 1 Jue 2004 Retroactive Applicatio: No Public Commet Period: Aug Nov 2002 INVESTMENT PERFORMANCE COUNCIL (IPC) Preface Guidace Statemet o Calculatio Methodology

More information

Assessment of the Board

Assessment of the Board Audit Committee Istitute Sposored by KPMG Assessmet of the Board Whe usig a facilitator, care eeds to be take if the idividual is i some way coflicted due to the closeess of their relatioship with the

More information

Wells Fargo Insurance Services Claim Consulting Capabilities

Wells Fargo Insurance Services Claim Consulting Capabilities Wells Fargo Isurace Services Claim Cosultig Capabilities Claim Cosultig Claims are a uwelcome part of America busiess. I a recet survey coducted by Fulbright & Jaworski L.L.P., large U.S. compaies face

More information

TIAA-CREF Wealth Management. Personalized, objective financial advice for every stage of life

TIAA-CREF Wealth Management. Personalized, objective financial advice for every stage of life TIAA-CREF Wealth Maagemet Persoalized, objective fiacial advice for every stage of life A persoalized team approach for a trusted lifelog relatioship No matter who you are, you ca t be a expert i all aspects

More information

Making training work for your business

Making training work for your business Makig traiig work for your busiess Itegratig core skills of laguage, literacy ad umeracy ito geeral workplace traiig makes sese. The iformatio i this pamphlet will help you pla for ad build a successful

More information

Investing in Stocks WHAT ARE THE DIFFERENT CLASSIFICATIONS OF STOCKS? WHY INVEST IN STOCKS? CAN YOU LOSE MONEY?

Investing in Stocks WHAT ARE THE DIFFERENT CLASSIFICATIONS OF STOCKS? WHY INVEST IN STOCKS? CAN YOU LOSE MONEY? Ivestig i Stocks Ivestig i Stocks Busiesses sell shares of stock to ivestors as a way to raise moey to fiace expasio, pay off debt ad provide operatig capital. Ecoomic coditios: Employmet, iflatio, ivetory

More information

A Balanced Scorecard

A Balanced Scorecard A Balaced Scorecard with VISION A Visio Iteratioal White Paper Visio Iteratioal A/S Aarhusgade 88, DK-2100 Copehage, Demark Phoe +45 35430086 Fax +45 35434646 www.balaced-scorecard.com 1 1. Itroductio

More information

LEASE-PURCHASE DECISION

LEASE-PURCHASE DECISION Public Procuremet Practice STANDARD The decisio to lease or purchase should be cosidered o a case-by case evaluatio of comparative costs ad other factors. 1 Procuremet should coduct a cost/ beefit aalysis

More information

Introducing Your New Wells Fargo Trust and Investment Statement. Your Account Information Simply Stated.

Introducing Your New Wells Fargo Trust and Investment Statement. Your Account Information Simply Stated. Itroducig Your New Wells Fargo Trust ad Ivestmet Statemet. Your Accout Iformatio Simply Stated. We are pleased to itroduce your ew easy-to-read statemet. It provides a overview of your accout ad a complete

More information

How to read A Mutual Fund shareholder report

How to read A Mutual Fund shareholder report Ivestor BulletI How to read A Mutual Fud shareholder report The SEC s Office of Ivestor Educatio ad Advocacy is issuig this Ivestor Bulleti to educate idividual ivestors about mutual fud shareholder reports.

More information

client communication

client communication CCH Portal cliet commuicatio facig today s challeges Like most accoutacy practices, we ow use email for most cliet commuicatio. It s quick ad easy, but we do worry about the security of sesitive data.

More information

CCH Accountants Starter Pack

CCH Accountants Starter Pack CCH Accoutats Starter Pack We may be a bit smaller, but fudametally we re o differet to ay other accoutig practice. Util ow, smaller firms have faced a stark choice: Buy cheaply, kowig that the practice

More information

Saudi Aramco Suppliers Safety Management System

Saudi Aramco Suppliers Safety Management System Saudi Aramco Suppliers Safety Maagemet System SAFETY is Protectio (if oly we follow the rules) ''To live each day ijury ad violatio free, o ad off the job'' Foreword Foreword Saudi Aramco has developed

More information

Full Lifecycle Project Cost Controls

Full Lifecycle Project Cost Controls Full Lifecycle Project Cost Cotrols EcoSys EPC is a ext geeratio plaig ad cost cotrols software solutio deliverig best practices for full lifecycle project cost maagemet i a itegrated, easy-to-use web

More information

Agency Relationship Optimizer

Agency Relationship Optimizer Decideware Developmet Agecy Relatioship Optimizer The Leadig Software Solutio for Cliet-Agecy Relatioship Maagemet supplier performace experts scorecards.deploymet.service decide ware Sa Fracisco Sydey

More information

Flood Emergency Response Plan

Flood Emergency Response Plan Flood Emergecy Respose Pla This reprit is made available for iformatioal purposes oly i support of the isurace relatioship betwee FM Global ad its cliets. This iformatio does ot chage or supplemet policy

More information

A GUIDE TO BUILDING SMART BUSINESS CREDIT

A GUIDE TO BUILDING SMART BUSINESS CREDIT A GUIDE TO BUILDING SMART BUSINESS CREDIT Establishig busiess credit ca be the key to growig your compay DID YOU KNOW? Busiess Credit ca help grow your busiess Soud paymet practices are key to a solid

More information

Information for Programs Seeking Initial Accreditation

Information for Programs Seeking Initial Accreditation Iformatio for Programs Seekig Iitial Accreditatio Aswers to Frequetly- Asked-Questios (from www.abet.org/ew-to-accreditatio/) Assurig Quality l Stimulatig Iovatio This documet iteds to aswer may of the

More information

What is IT Governance?

What is IT Governance? 30 Caada What is IT Goverace? ad why is it importat for the IS auditor By Richard Brisebois, pricipal of IT Audit Services, Greg Boyd, Director ad Ziad Shadid, Auditor. from the Office of the Auditor Geeral

More information

Supply Chain Management

Supply Chain Management Supply Chai Maagemet LOA Uiversity October 9, 205 Distributio D Distributio Authorized to Departmet of Defese ad U.S. DoD Cotractors Oly Aim High Fly - Fight - Wi Who am I? Dr. William A Cuigham PhD Ecoomics

More information

INVESTMENT PERFORMANCE COUNCIL (IPC)

INVESTMENT PERFORMANCE COUNCIL (IPC) INVESTMENT PEFOMANCE COUNCIL (IPC) INVITATION TO COMMENT: Global Ivestmet Performace Stadards (GIPS ) Guidace Statemet o Calculatio Methodology The Associatio for Ivestmet Maagemet ad esearch (AIM) seeks

More information

ODBC. Getting Started With Sage Timberline Office ODBC

ODBC. Getting Started With Sage Timberline Office ODBC ODBC Gettig Started With Sage Timberlie Office ODBC NOTICE This documet ad the Sage Timberlie Office software may be used oly i accordace with the accompayig Sage Timberlie Office Ed User Licese Agreemet.

More information

The Forgotten Middle. research readiness results. Executive Summary

The Forgotten Middle. research readiness results. Executive Summary The Forgotte Middle Esurig that All Studets Are o Target for College ad Career Readiess before High School Executive Summary Today, college readiess also meas career readiess. While ot every high school

More information

Domain 1: Designing a SQL Server Instance and a Database Solution

Domain 1: Designing a SQL Server Instance and a Database Solution Maual SQL Server 2008 Desig, Optimize ad Maitai (70-450) 1-800-418-6789 Domai 1: Desigig a SQL Server Istace ad a Database Solutio Desigig for CPU, Memory ad Storage Capacity Requiremets Whe desigig a

More information

Optimize your Network. In the Courier, Express and Parcel market ADDING CREDIBILITY

Optimize your Network. In the Courier, Express and Parcel market ADDING CREDIBILITY Optimize your Network I the Courier, Express ad Parcel market ADDING CREDIBILITY Meetig today s challeges ad tomorrow s demads Aswers to your key etwork challeges ORTEC kows the highly competitive Courier,

More information

A guide to School Employees' Well-Being

A guide to School Employees' Well-Being A guide to School Employees' Well-Beig Backgroud The public school systems i the Uited States employ more tha 6.7 millio people. This large workforce is charged with oe of the atio s critical tasks to

More information

Baan Service Master Data Management

Baan Service Master Data Management Baa Service Master Data Maagemet Module Procedure UP069A US Documetiformatio Documet Documet code : UP069A US Documet group : User Documetatio Documet title : Master Data Maagemet Applicatio/Package :

More information

RISK TRANSFER FOR DESIGN-BUILD TEAMS

RISK TRANSFER FOR DESIGN-BUILD TEAMS WILLIS CONSTRUCTION PRACTICE I-BEAM Jauary 2010 www.willis.com RISK TRANSFER FOR DESIGN-BUILD TEAMS Desig-builD work is icreasig each quarter. cosequetly, we are fieldig more iquiries from cliets regardig

More information

Prescribing costs in primary care

Prescribing costs in primary care Prescribig costs i primary care LONDON: The Statioery Office 13.50 Ordered by the House of Commos to be prited o 14 May 2007 REPORT BY THE COMPTROLLER AND AUDITOR GENERAL HC 454 Sessio 2006-2007 18 May

More information

France caters to innovative companies and offers the best research tax credit in Europe

France caters to innovative companies and offers the best research tax credit in Europe 1/5 The Frech Govermet has three objectives : > improve Frace s fiscal competitiveess > cosolidate R&D activities > make Frace a attractive coutry for iovatio Tax icetives have become a key elemet of public

More information

CCH Accounts Production

CCH Accounts Production CCH Accouts Productio accouts productio facig today s challeges Preparig statutory ad fiacial accouts is a core activity for our practice, as it is for may professioal firms. Although legislatio ad accoutig

More information

Preserving Your Financial Legacy with Life Insurance Premium Financing.

Preserving Your Financial Legacy with Life Insurance Premium Financing. Preservig Your Fiacial Legacy with Life Isurace Premium Fiacig. Prepared by: Keeth M. Fujita, Natioal Director, The Private Bak Specialty Fiace Group Life Isurace Premium Fiace. James Mosrie, Seior Wealth

More information

Amendments to employer debt Regulations

Amendments to employer debt Regulations March 2008 Pesios Legal Alert Amedmets to employer debt Regulatios The Govermet has at last issued Regulatios which will amed the law as to employer debts uder s75 Pesios Act 1995. The amedig Regulatios

More information

Ken blanchard college of business

Ken blanchard college of business Ke blachard College of BUSINESS a history of excellece Established i 1949, Grad Cayo Uiversity has more tha a 60-year track record of helpig studets achieve their academic goals. The Ke Blachard College

More information

A Guide to Better Postal Services Procurement. A GUIDE TO better POSTAL SERVICES PROCUREMENT

A Guide to Better Postal Services Procurement. A GUIDE TO better POSTAL SERVICES PROCUREMENT A Guide to Better Postal Services Procuremet A GUIDE TO better POSTAL SERVICES PROCUREMENT itroductio The NAO has published a report aimed at improvig the procuremet of postal services i the public sector

More information

Non-life insurance mathematics. Nils F. Haavardsson, University of Oslo and DNB Skadeforsikring

Non-life insurance mathematics. Nils F. Haavardsson, University of Oslo and DNB Skadeforsikring No-life isurace mathematics Nils F. Haavardsso, Uiversity of Oslo ad DNB Skadeforsikrig Mai issues so far Why does isurace work? How is risk premium defied ad why is it importat? How ca claim frequecy

More information

To c o m p e t e in t o d a y s r e t a i l e n v i r o n m e n t, y o u n e e d a s i n g l e,

To c o m p e t e in t o d a y s r e t a i l e n v i r o n m e n t, y o u n e e d a s i n g l e, Busiess Itelligece Software for Retail To c o m p e t e i t o d a y s r e t a i l e v i r o m e t, y o u e e d a s i g l e, comprehesive view of your busiess. You have to tur the decisio-makig of your

More information

CCH CRM Books Online Software Fee Protection Consultancy Advice Lines CPD Books Online Software Fee Protection Consultancy Advice Lines CPD

CCH CRM Books Online Software Fee Protection Consultancy Advice Lines CPD Books Online Software Fee Protection Consultancy Advice Lines CPD Books Olie Software Fee Fee Protectio Cosultacy Advice Advice Lies Lies CPD CPD facig today s challeges As a accoutacy practice, maagig relatioships with our cliets has to be at the heart of everythig

More information

Enhance Your Financial Legacy Variable Annuity Death Benefits from Pacific Life

Enhance Your Financial Legacy Variable Annuity Death Benefits from Pacific Life Ehace Your Fiacial Legacy Variable Auity Death Beefits from Pacific Life 7/15 20172-15B As You Pla for Retiremet, Protect Your Loved Oes A Pacific Life variable auity ca offer three death beefits that

More information

AGC s SUPERVISORY TRAINING PROGRAM

AGC s SUPERVISORY TRAINING PROGRAM AGC s SUPERVISORY TRAINING PROGRAM Learig Today...Leadig Tomorrow The Kowledge ad Skills Every Costructio Supervisor Must Have to be Effective The Associated Geeral Cotractors of America s Supervisory

More information

Digital Enterprise Unit. White Paper. Web Analytics Measurement for Responsive Websites

Digital Enterprise Unit. White Paper. Web Analytics Measurement for Responsive Websites Digital Eterprise Uit White Paper Web Aalytics Measuremet for Resposive Websites About the Authors Vishal Machewad Vishal Machewad has over 13 years of experiece i sales ad marketig, havig worked as a

More information

Your support connection

Your support connection Your support coectio Cosultig ad outsourced support for isurace ad reisurace compaies Cosultig ad outsourced support for isurace ad reisurace compaies With a global staff of over 500 professioals i Europe

More information

Engineering Data Management

Engineering Data Management BaaERP 5.0c Maufacturig Egieerig Data Maagemet Module Procedure UP128A US Documetiformatio Documet Documet code : UP128A US Documet group : User Documetatio Documet title : Egieerig Data Maagemet Applicatio/Package

More information

Enhance Your Financial Legacy Variable Annuities with Death Benefits from Pacific Life

Enhance Your Financial Legacy Variable Annuities with Death Benefits from Pacific Life Ehace Your Fiacial Legacy Variable Auities with Death Beefits from Pacific Life 9/15 20188-15C FOR CALIFORNIA As You Pla for Retiremet, Protect Your Loved Oes A Pacific Life variable auity ca offer three

More information

CCH Practice Management

CCH Practice Management 1 CCH Practice Maagemet practice maagemet facig today s challeges Every year it seems we face more regulatios, growig cliet expectatios ad lower margis o our compliace work. It s a tough time for a accoutig

More information

DC College Savings Plan Helping Children Reach a Higher Potential

DC College Savings Plan Helping Children Reach a Higher Potential 529 DC College Savigs Pla Helpig Childre Reach a Higher Potetial reach Sposored by Govermet of the District of Columbia Office of the Mayor Office of the Chief Fiacial Officer Office of Fiace ad Treasury

More information

Analyzing Longitudinal Data from Complex Surveys Using SUDAAN

Analyzing Longitudinal Data from Complex Surveys Using SUDAAN Aalyzig Logitudial Data from Complex Surveys Usig SUDAAN Darryl Creel Statistics ad Epidemiology, RTI Iteratioal, 312 Trotter Farm Drive, Rockville, MD, 20850 Abstract SUDAAN: Software for the Statistical

More information

Valuing Firms in Distress

Valuing Firms in Distress Valuig Firms i Distress Aswath Damodara http://www.damodara.com Aswath Damodara 1 The Goig Cocer Assumptio Traditioal valuatio techiques are built o the assumptio of a goig cocer, I.e., a firm that has

More information

Enhancing Oracle Business Intelligence with cubus EV How users of Oracle BI on Essbase cubes can benefit from cubus outperform EV Analytics (cubus EV)

Enhancing Oracle Business Intelligence with cubus EV How users of Oracle BI on Essbase cubes can benefit from cubus outperform EV Analytics (cubus EV) Ehacig Oracle Busiess Itelligece with cubus EV How users of Oracle BI o Essbase cubes ca beefit from cubus outperform EV Aalytics (cubus EV) CONTENT 01 cubus EV as a ehacemet to Oracle BI o Essbase 02

More information

CHAPTER 3 THE TIME VALUE OF MONEY

CHAPTER 3 THE TIME VALUE OF MONEY CHAPTER 3 THE TIME VALUE OF MONEY OVERVIEW A dollar i the had today is worth more tha a dollar to be received i the future because, if you had it ow, you could ivest that dollar ad ear iterest. Of all

More information

facing today s challenges As an accountancy practice, managing relationships with our clients has to be at the heart of everything we do.

facing today s challenges As an accountancy practice, managing relationships with our clients has to be at the heart of everything we do. CCH CRM cliet relatios facig today s challeges As a accoutacy practice, maagig relatioships with our cliets has to be at the heart of everythig we do. That s why our CRM system ca t be a bolt-o extra it

More information

My first gold holdings. My first bank. Simple. Transparent. Individual. Our investment solutions for clients abroad.

My first gold holdings. My first bank. Simple. Transparent. Individual. Our investment solutions for clients abroad. My first gold holdigs. My first bak. Simple. Trasparet. Idividual. Our ivestmet solutios for cliets abroad. The perfect basis for workig together successfully The wheel of time is turig faster tha ever

More information

optimise your investment in Microsoft technology. Microsoft Consulting Services from CIBER

optimise your investment in Microsoft technology. Microsoft Consulting Services from CIBER optimise your ivestmet i Microsoft techology. Microsoft Cosultig Services from Microsoft Cosultig Services from MICROSOFT CONSULTING SERVICES ca help with ay stage i the lifecycle of adoptig Microsoft

More information

CREATIVE MARKETING PROJECT 2016

CREATIVE MARKETING PROJECT 2016 CREATIVE MARKETING PROJECT 2016 The Creative Marketig Project is a chapter project that develops i chapter members a aalytical ad creative approach to the marketig process, actively egages chapter members

More information

Withdrawals with SunAmerica Income Plus 6% SM

Withdrawals with SunAmerica Income Plus 6% SM Guaratee cliets Withdrawals with SuAmerica Icome Plus 6% SM More Now More Later More Flexibility Growth with SuAmerica Icome Builder 8% SM For fiacial professioal use oly. Not for distributio to the public.

More information

insight reporting solutions

insight reporting solutions reportig solutios Create ad cotrol olie customized score reports to measure studet progress ad to determie ways to improve istructio. isight Customized Reportig empowers you to make data-drive decisios.

More information

Pre-Suit Collection Strategies

Pre-Suit Collection Strategies Pre-Suit Collectio Strategies Writte by Charles PT Phoeix How to Decide Whether to Pursue Collectio Calculatig the Value of Collectio As with ay busiess litigatio, all factors associated with the process

More information

INDEPENDENT BUSINESS PLAN EVENT 2016

INDEPENDENT BUSINESS PLAN EVENT 2016 INDEPENDENT BUSINESS PLAN EVENT 2016 The Idepedet Busiess Pla Evet ivolves the developmet of a comprehesive proposal to start a ew busiess. Ay type of busiess may be used. The Idepedet Busiess Pla Evet

More information

TIAA-CREF WEALTH MANAGEMENT A HIGHLY PERSONALIZED, SOPHISTICATED SERVICE DESIGNED TO MATCH ONE OBJECTIVE: YOURS

TIAA-CREF WEALTH MANAGEMENT A HIGHLY PERSONALIZED, SOPHISTICATED SERVICE DESIGNED TO MATCH ONE OBJECTIVE: YOURS TIAA-CREF WEALTH MANAGEMENT A HIGHLY PERSONALIZED, SOPHISTICATED SERVICE DESIGNED TO MATCH ONE OBJECTIVE: YOURS TIAA-CREF: FINANCIAL SERVICES FOR THE GREATER GOOD. OUR HISTORY We are TIAA-CREF. A full-service

More information

Configuring Additional Active Directory Server Roles

Configuring Additional Active Directory Server Roles Maual Upgradig your MCSE o Server 2003 to Server 2008 (70-649) 1-800-418-6789 Cofigurig Additioal Active Directory Server Roles Active Directory Lightweight Directory Services Backgroud ad Cofiguratio

More information

Privacy Guide for Small Businesses: The Basics

Privacy Guide for Small Businesses: The Basics Office of the Privacy Commissioer of Caada PIPEDA Privacy Guide for Small Busiesses: The Basics Privacy is the best policy Hadlig privacy cocers correctly ca help improve your orgaizatio s reputatio. Whe

More information

Advancement FORUM. www.acmaweb.org/advancement CULTIVATING LEADERS IN CASE MANAGEMENT

Advancement FORUM. www.acmaweb.org/advancement CULTIVATING LEADERS IN CASE MANAGEMENT H E A L T H C A R E D E L I V E R Y S Y S T E M C A S E M A N A G E M E N T E D U C A T I O N Advacemet FORUM CULTIVATING LEADERS IN CASE MANAGEMENT DATES AND LOCATIONS LOS ANGELES, CA DECEMBER 11 DALLAS,

More information

Research Method (I) --Knowledge on Sampling (Simple Random Sampling)

Research Method (I) --Knowledge on Sampling (Simple Random Sampling) Research Method (I) --Kowledge o Samplig (Simple Radom Samplig) 1. Itroductio to samplig 1.1 Defiitio of samplig Samplig ca be defied as selectig part of the elemets i a populatio. It results i the fact

More information

Subject CT5 Contingencies Core Technical Syllabus

Subject CT5 Contingencies Core Technical Syllabus Subject CT5 Cotigecies Core Techical Syllabus for the 2015 exams 1 Jue 2014 Aim The aim of the Cotigecies subject is to provide a groudig i the mathematical techiques which ca be used to model ad value

More information

Ideate, Inc. Training Solutions to Give you the Leading Edge

Ideate, Inc. Training Solutions to Give you the Leading Edge Ideate, Ic. Traiig News 2014v1 Ideate, Ic. Traiig Solutios to Give you the Leadig Edge New Packages For All Your Traiig Needs! Bill Johso Seior MEP - Applicatio Specialist Revit MEP Fudametals Ad More!

More information

PUBLIC RELATIONS PROJECT 2016

PUBLIC RELATIONS PROJECT 2016 PUBLIC RELATIONS PROJECT 2016 The purpose of the Public Relatios Project is to provide a opportuity for the chapter members to demostrate the kowledge ad skills eeded i plaig, orgaizig, implemetig ad evaluatig

More information

GoVal Group Government Consulting and Valuation Advisory Group. real. Real expertise. Real choices. Real value.

GoVal Group Government Consulting and Valuation Advisory Group. real. Real expertise. Real choices. Real value. GoVal Group Govermet Cosultig ad Valuatio Advisory Group real. Real expertise. Real choices. Real value. Novogradac s GoVal Group Specialized cosultig services from a idustry leader. real choices. A uique

More information

Trusteed IRAs. Integrate and simplify your retirement and estate plans

Trusteed IRAs. Integrate and simplify your retirement and estate plans Trusteed IRAs Itegrate ad simplify your retiremet ad estate plas Trusteed IRAs from Merrill Lych Trust Compay To create the legacy of your dreams, you may eed more tha a Idividual Retiremet Accout ad a

More information

Smart Connected Products & The Internet of Things

Smart Connected Products & The Internet of Things Smart Coected Products & The Iteret of Thigs Who we are Taget delivers Talet Globally. Established for 40 years we specialise i delivery of iovative & tailored talet solutios to customers aroud the world.

More information

Season s Greetings. President s Message

Season s Greetings. President s Message News SOLELY FOR BENEFIT December 2012 BOARD OF DIRECTORS PRESIDENT Tret White Pharmacists Associatio of Newfoudlad ad Labrador (PANL) SECRETARY/TREASURER Price Edward Islad Pharmacists Associatio (PEI)

More information

IntelliSOURCE Comverge s enterprise software platform provides the foundation for deploying integrated demand management programs.

IntelliSOURCE Comverge s enterprise software platform provides the foundation for deploying integrated demand management programs. ItelliSOURCE Comverge s eterprise software platform provides the foudatio for deployig itegrated demad maagemet programs. ItelliSOURCE Demad maagemet programs such as demad respose, eergy efficiecy, ad

More information

ContactPro Desktop for Multi-Media Contact Center

ContactPro Desktop for Multi-Media Contact Center CotactPro Desktop for Multi-Media Cotact Ceter CCT CotactPro (CP) is the perfect solutio for the aget desktop i a Avaya multimedia call ceter eviromet. CotactPro empowers agets to efficietly serve customers

More information

How to use what you OWN to reduce what you OWE

How to use what you OWN to reduce what you OWE How to use what you OWN to reduce what you OWE Maulife Oe A Overview Most Caadias maage their fiaces by doig two thigs: 1. Depositig their icome ad other short-term assets ito chequig ad savigs accouts.

More information

Alternative Asset Classes

Alternative Asset Classes Alterative Asset Classes Alterative Asset Classes Beyod the three primary asset classes stocks, bods ad cash may other types of ivestmets ca be used to diversify ivestmet portfolios. The term alterative

More information

International Delegation A summary for financial advisers

International Delegation A summary for financial advisers Iteratioal Delegatio A summary for fiacial advisers Cotets Please ote For fiacial adviser use oly. It should ot be distributed to, or relied upo by, retail cliets. AXA Wealth Iteratioal is the brad used

More information

Comparing Credit Card Finance Charges

Comparing Credit Card Finance Charges Comparig Credit Card Fiace Charges Comparig Credit Card Fiace Charges Decidig if a particular credit card is right for you ivolves uderstadig what it costs ad what it offers you i retur. To determie how

More information

(VCP-310) 1-800-418-6789

(VCP-310) 1-800-418-6789 Maual VMware Lesso 1: Uderstadig the VMware Product Lie I this lesso, you will first lear what virtualizatio is. Next, you ll explore the products offered by VMware that provide virtualizatio services.

More information

Security Functions and Purposes of Network Devices and Technologies (SY0-301) 1-800-418-6789. Firewalls. Audiobooks

Security Functions and Purposes of Network Devices and Technologies (SY0-301) 1-800-418-6789. Firewalls. Audiobooks Maual Security+ Domai 1 Network Security Every etwork is uique, ad architecturally defied physically by its equipmet ad coectios, ad logically through the applicatios, services, ad idustries it serves.

More information

Commercial Real Estate Women Network

Commercial Real Estate Women Network Commercial Real Estate Wome Network About CREW Network Fouded i 1989, CREW Network is the idustry s premier busiess etworkig orgaizatio dedicated to ifluecig the success of the commercial real estate idustry

More information

Page 1. Real Options for Engineering Systems. What are we up to? Today s agenda. J1: Real Options for Engineering Systems. Richard de Neufville

Page 1. Real Options for Engineering Systems. What are we up to? Today s agenda. J1: Real Options for Engineering Systems. Richard de Neufville Real Optios for Egieerig Systems J: Real Optios for Egieerig Systems By (MIT) Stefa Scholtes (CU) Course website: http://msl.mit.edu/cmi/ardet_2002 Stefa Scholtes Judge Istitute of Maagemet, CU Slide What

More information

Evaluating Model for B2C E- commerce Enterprise Development Based on DEA

Evaluating Model for B2C E- commerce Enterprise Development Based on DEA , pp.180-184 http://dx.doi.org/10.14257/astl.2014.53.39 Evaluatig Model for B2C E- commerce Eterprise Developmet Based o DEA Weli Geg, Jig Ta Computer ad iformatio egieerig Istitute, Harbi Uiversity of

More information

Create Income for Your Retirement. What You Can Expect. What to Consider. Page 1 of 7

Create Income for Your Retirement. What You Can Expect. What to Consider. Page 1 of 7 Page 1 of 7 RBC Retiremet Icome Plaig Process Create Icome for Your Retiremet At RBC Wealth Maagemet, we believe maagig your wealth to produce a icome durig retiremet is fudametally differet from maagig

More information

Contract Governance Guidelines. April 2014

Contract Governance Guidelines. April 2014 Cotract Goverace Guidelies April 2014 1 2 Ackowledgemet The Departmet of Family ad Commuity Services (FACS) uder cotract with CPLI Pty Limited ad Terece Burke, ad usig The Burke Four Pillars Model of Cotract

More information

How to Build More Successful Strategic Supplier Relationships

How to Build More Successful Strategic Supplier Relationships a Decideware white paper How to Build More Successful Strategic Supplier Relatioships Icorporatig Performace & Value metrics i supplier scorecards supplier performace experts scorecards.deploymet.service

More information

FIRE PROTECTION SYSTEM INSPECTION, TESTING AND MAINTENANCE PROGRAMS

FIRE PROTECTION SYSTEM INSPECTION, TESTING AND MAINTENANCE PROGRAMS STRATEGIC OUTCOMES PRACTICE TECHNICAL ADVISORY BULLETIN February 2011 FIRE PROTECTION SYSTEM INSPECTION, TESTING AND MAINTENANCE PROGRAMS www.willis.com Natioal Fire Protectio Associatio (NFPA) #25 a mai

More information

PENSION ANNUITY. Policy Conditions Document reference: PPAS1(7) This is an important document. Please keep it in a safe place.

PENSION ANNUITY. Policy Conditions Document reference: PPAS1(7) This is an important document. Please keep it in a safe place. PENSION ANNUITY Policy Coditios Documet referece: PPAS1(7) This is a importat documet. Please keep it i a safe place. Pesio Auity Policy Coditios Welcome to LV=, ad thak you for choosig our Pesio Auity.

More information

Authentication - Access Control Default Security Active Directory Trusted Authentication Guest User or Anonymous (un-authenticated) Logging Out

Authentication - Access Control Default Security Active Directory Trusted Authentication Guest User or Anonymous (un-authenticated) Logging Out FME Server Security Table of Cotets FME Server Autheticatio - Access Cotrol Default Security Active Directory Trusted Autheticatio Guest User or Aoymous (u-autheticated) Loggig Out Authorizatio - Roles

More information

Institute of Actuaries of India Subject CT1 Financial Mathematics

Institute of Actuaries of India Subject CT1 Financial Mathematics Istitute of Actuaries of Idia Subject CT1 Fiacial Mathematics For 2014 Examiatios Subject CT1 Fiacial Mathematics Core Techical Aim The aim of the Fiacial Mathematics subject is to provide a groudig i

More information

Developing the Application of 360 Degree Performance Appraisal through Logic Model

Developing the Application of 360 Degree Performance Appraisal through Logic Model Iteratioal Joural of Busiess ad Social Sciece Vol. 3 No. 22 [Special Issue November 2012] Developig the Applicatio of 360 Degree Performace Appraisal through Logic Model Ozge OZ Huma Resources Specialist

More information

Business Application Services. Business Applications that provide value to your enterprise.

Business Application Services. Business Applications that provide value to your enterprise. Busiess Applicatio Services Busiess Applicatios that provide value to your eterprise. Sesiple s expertise ca help orgaizatio decode the performace issues ad trasform them ito valuable beefits that meet

More information

EUROCONTROL PRISMIL. EUROCONTROL civil-military performance monitoring system

EUROCONTROL PRISMIL. EUROCONTROL civil-military performance monitoring system EUROCONTROL PRISMIL EUROCONTROL civil-military performace moitorig system Itroductio What is PRISMIL? PRISMIL is a olie civil-military performace moitorig system which facilitates the combied performace

More information

Grow your business with savings and debt management solutions

Grow your business with savings and debt management solutions Grow your busiess with savigs ad debt maagemet solutios A few great reasos to provide bak ad trust products to your cliets You have the expertise to help your cliets get the best rates ad most competitive

More information

Information about Bankruptcy

Information about Bankruptcy Iformatio about Bakruptcy Isolvecy Service of Irelad Seirbhís Dócmhaieachta a héirea Isolvecy Service of Irelad Seirbhís Dócmhaieachta a héirea What is the? The Isolvecy Service of Irelad () is a idepedet

More information

Business Process Services. White Paper. Smart Ways to Implement Smart Meters: Using Analytics for Actionable Insights and Optimal Rollout

Business Process Services. White Paper. Smart Ways to Implement Smart Meters: Using Analytics for Actionable Insights and Optimal Rollout Busiess Process Services White Paper Smart Ways to Implemet Smart Meters: Usig Aalytics for Actioable Isights ad Optimal Rollout About the Authors Sumit Joshi Sumit is part of the Aalytics ad Isights team

More information

Agenda. Outsourcing and Globalization in Software Development. Outsourcing. Outsourcing here to stay. Outsourcing Alternatives

Agenda. Outsourcing and Globalization in Software Development. Outsourcing. Outsourcing here to stay. Outsourcing Alternatives Outsourcig ad Globalizatio i Software Developmet Jacques Crocker UW CSE Alumi 2003 jc@cs.washigto.edu Ageda Itroductio The Outsourcig Pheomeo Leadig Offshore Projects Maagig Customers Offshore Developmet

More information

PRICE BAILEY CHARITIES & NOT FOR PROFIT THE RIGHT ADVICE FOR LIFE

PRICE BAILEY CHARITIES & NOT FOR PROFIT THE RIGHT ADVICE FOR LIFE PRICE BAILEY CHARITIES & NOT FOR PROFIT THE RIGHT ADVICE FOR LIFE OUR EXPERTISE To arrage a meetig with a member of for more iformatio about Price Bailey, At Price Bailey, we recogise that charity ad ot-for-profit

More information