Risk management and the transition of projects to business as usual

Size: px
Start display at page:

Download "Risk management and the transition of projects to business as usual"

Transcription

1 Advisory Risk management and the transition of projects to business as usual Financial Services kpmg.com

2 2 Risk Management and the Transition of Projects to Business as Usual Introduction Today s banks, insurance companies, and other financial organizations must address a growing number of change management issues, including Basel III compliance and the adoption of new enterprise-level technology. Sound project management practices have been used by these organizations to mitigate change-driven operational risk. However, another area of risk one that is often overlooked or underestimated is the transition phase from project mode to the business as usual (BAU) state. This risk can lead to financial loss, service disruption, or reputational damage. To identify and help mitigate BAU transition risk, organizations can develop risk management frameworks that support the critical and complex transition to BAU. More often than not, introducing change to a financial organization leads to operational risk. This risk can manifest itself through the following categories: People, involving staffing levels, subject matter expertise, training, supervision, key-person dependencies, or overall control culture Process, including issues such as adherence to policies and procedures, integration of controls with daily processes, availability and quality of management information (MI), ongoing deal maintenance, new product documentation, and documentation for complex, customized, or long-dated transactions Organizational factors or external events, such as management structure, external threats/hazards, volume and market volatility, support for new clients, complexity of product line complexity, adverse changes in regulatory environment and vendor disruptions Technical infrastructure, including factors such as performance, stability, contingency, systems functionality, volume capacity, straight-through processing (STP) capability of complex transactions, dependency on end-user computing spreadsheets, manual intervention due to system constraints, single point of failure of hardware and software, or unauthorized access to systems. Risk and BAU transition Change-driven operational risk generally originates from five categories of projects: strategy and reengineering, Six Sigma/ efficiency, new business, department-specific, and regulatory compliance such as Basel III or Regulatory Reform. A critical dimension of operational risk is the institution s exposure to poor change management during the transition period from project mode to the BAU state. When closing out a project, the drive to the finish line can naturally lead to overlooking critical controls designed to ensure that end-user needs and business cases are met. BAU transition failure is frequently the result of poorly executed implementation plans rather than inadequate project management methodologies. Organizations need to ensure that when introducing a new process or product to their user community, they take the necessary steps to get it right the first time. For example, as banks progress through their parallel run for the Basel II Advanced Measurement Approach (AMA) and prepare for the forthcoming Basel III guidance, project performance may be measured with greater scrutiny, especially if it is tied to capital requirements. Execution of a robust change management plan can be a powerful component to ensure an efficient transition to BAU. This plan should include: Adequate risk identification and impact A strong relationship between project benefits and BAU transition planning

3 Risk Management and the Transition of Projects Section to Business or Brochure as Usual name 3 Adequate project staffing and management of project risk vs. process risk. We can gain a better understanding of these three elements by looking at each one in greater detail. Adequate risk identification and impact The effectiveness of a bank s risk and control self-assessment (RCSA) process is fundamental to the success of an AMAbased operational risk program. The RCSA process should be inclusive of all production, infrastructure, and governance divisions. It should also be focused on prioritizing outstanding issues pertinent to the entire organization. A substantive portion of the RCSA output will arise from key control deficiencies, some of which will be attributed to risks tied to projects aimed at organizational change. Stakeholders, including the board of directors and management committees, should understand the connection between their organization s risk profile and status indicators from critical projects. Project proposals and implementation planning should include measures to ensure adequate mitigation of operational risks during a project transition to BAU. These measures can be introduced through the following actions: Disaggregate and detail the risks inherent to the project. Establish specific categories of underlying risk that the business will undertake and outline a strategy for managing or mitigating the risk. This can include dynamically managing open risks while microhedging risks that are undesirable or not readily manageable. Establish relevant risk limits with respect to the proposed initiative. Include as appropriate credit limits, Value at Risk (VaR), and stop-loss. Describe any reputational risk factors requiring consideration when assessing the proposed initiative. Where specific reputational risks are present, describe how the risk will be mitigated to acceptable levels. Describe key operational risks associated with the proposed initiative. With tools such as key risk indicators (KRIs), define how these risks will be monitored and mitigated where appropriate. Account for regulatory considerations impacting the proposed initiative, including required licenses and/or new product approval. Define the project s value proposition. Detail opportunities to pursue and identify key drivers for success. Define potential pitfalls and a mitigation strategy to minimize their risk impact. Establish a desired end state, with an outline of recommended steps to attain it.

4 4 Risk Management and the Transition of Projects to Business as Usual A strong relationship between project benefits and BAU transition planning Project management is a continuous process for banks and financial organizations, with management often assessing value from the cost and benefit perspectives. However, formal plans for project transition into BAU are often absent from even the most mature project management methodologies. Adequate controls and levels of ownership designed to transition projects to BAU mode can increase business value and encourage management to invest in future processes with potential for positive impact on the organization. It is important to highlight that the stronger a project s business case is in terms of realizable benefits, the more effective a BAU transition plan becomes from the internal stakeholder perspective and in some cases from the perspective of regulators. More often than not, a strong business case is the result of a strong project management methodology that includes discipline in tracing requirements throughout the project s life cycle. Adequate project staffing and management of project risk vs. process risk Significant financial losses can result from a lack of clear understanding of project requirements by key stakeholders. Furthermore, projects inadequately staffed with poor subject matter expertise are likely to produce weak business cases, unrealized benefits, and a negative impact to existing day-today operations. Executive sponsorship is another aspect of project management that should not be overlooked. Strong executive sponsorship drives senior management support for the project and promotes a culture where project managers don t hesitate to raise critical issues in a timely fashion. Being a strong sponsor is not simply a matter of approving scope and signing the checks; it means developing awareness for issues and risks critical to reach project success. From the regulatory perspective, strong project sponsorship is a key driver in ensuring that changes or updates to regulations are adequately incorporated into a project s life cycle while maintaining acceptable spending levels. A successful transition from project mode to BAU requires sponsors and management teams to apply mitigation strategies aimed at process risk rather than project risk the latter being more in line with the responsibilities of the project manager. In exercising process risk management, sponsors and senior managers should ensure that: Key process risks are identified and documented. Risk controls meet strong standards and policies and adequately mitigate the risk in accordance with the organization s risk profile. Controls are adequately implemented and performed in the production environment. Internal Audit can also play a critical role in a project s BAU transition. Audit should strive to provide an assessment of level risk to the organization s project portfolio and determine

5 Risk Management and the Transition of Projects to Business as Usual 5 whether a project s BAU transition process adequately manages operational and reputational risks. This involvement can enable Audit to target other auditable areas of coverage based on risks and/or deficiencies identified in this process. A transparent project management methodology coupled with strong controls to ensure an efficient transition to BAU facilitates mitigation and remediation of risks and deficiencies associated with people, process, and technology. Risk and issue tracking should utilize appropriate operational risk escalation channels to include steering, audit, and risk management committees as well as the board of directors. Managing risk in line with project governance Over the past decade, the financial industry has witnessed development of risk management frameworks closely tied to project management and governance. While differences exist, a common set of traits has transformed some of these frameworks into highly effective mechanisms to manage risk: Understanding of business processes closely tied to operational risk by project teams and sponsors. Understanding the organization s tolerance for change. Alignment of business cases to sponsor requirements. Early identification of potential risks, issues, or problem areas. Prioritization of risks using indicators for probability and impact. Transparency in risk reporting. Prioritization of risk mitigation after project close-out and transition into BAU. Tracking and monitoring of risk mitigation effectiveness by performing pre- and post-implementation quality assurance reviews. Documentation and cyclical incorporation of lessons learned as part of a project s life cycle. Continuous process improvement reflecting market trends and the organization s strategic goals. Conclusion Successful projects require organizational support, ranging from the board of directors and executive management to project teams. The biggest challenges faced by organizations in maximizing the value of their projects are often derived from poor execution of change management plans during transition to BAU state. To summarize, an effective project transition to BAU state can be supported by three drivers: Business value of projects tied to operational and reputational risks and managed in accordance with the organization s risk profile Adequate stakeholder involvement and subject matter expertise used to maximize project benefits and attain a positive business value Risks managed responsibly and aggressively between project close-out and transition into BAU

6 6 Risk Management and the Transition of Projects to Business as Usual Appendix: Risk and project management In many ways, risk management for BAU transition is supported by the effective management of the project life cycle. Project management offices (PMOs) and steering committees are responsible for ensuring that all critical risks are considered and mitigated as part of project delivery. As part of efforts to mitigate critical risks, management should target specific focus areas at the junction between deployment and project closeout. These focus areas include: Clarity of roles and responsibilities and transparency in project reporting Rigor of formal project governance processes Consideration for on-going BAU state during the project, including knowledge transfer processes and mechanisms Sustainability and operational readiness assessment and confirmation Development of a formal process to track issues, risks, deficiencies and, decision-making Clear definition of roles and responsibilities for closure, including a process for assumption and transfer of authority and accountability. In each of these areas, risks across the project life cycle need to be properly managed by project managers and stakeholders with a strong influence on funding and results.

7 Risk Management and the Transition of Projects to Business as Usual 7 Risk management for the project life cycle Category Success factor Impact of failure Measurement Strong project sponsorship Key project sponsors identified and buy-in secured Strong communication planning including levels of support and influence from sponsors and stakeholders Diminished priority of key deliverables due to conflicting sponsor or stakeholder needs Negative impact of project deliverables toward expected benefits The establishment of formal mechanisms for continued feedback from sponsors and stakeholders throughout a project Termination of project Management buy-in Management team agrees with project scope and anticipated benefits Reduced project support and low team morale resulting in negative impact against quality of deliverables Continuous communication with teams having an influence on project success and the user community Communication should provide opportunities for ongoing feedback and discussion of concerns. Project roles and responsibilities Agreement on cross-functional roles and responsibilities to manage overlap and reduce duplication of work PMO s role and project control mechanisms are undermined Budget overruns caused by work duplication A formal cross-functional project communication plan outlining roles and responsibilities and level of influence of stakeholders Since a stakeholder s level of influence is likely to change along a project s life cycle, this plan should be adjusted accordingly at each major phase or key decision. Project management Strong project management to ensure optimal project execution and communication based on stakeholder needs and level of influence Negative impact against scope, schedule, budget, and quality of project deliverables Increased potential for unrealized benefits Failure to meet regulatory standards and expectations Quantified metrics measuring project benefits and performance against scope, schedule, budget and quality standards.reports developed by project managers and Internal Audit to determine the level of compliance against regulatory requirements. Client buy-in Client understands objectives and works in partnership with project manager Lack of engagement at detailed levels, resulting in superficial review of deliverables and poor project quality Incorporation of client feedback at detailed levels to understand whether or not expectations are being met Differentiation between project risk management and process risk management Project managers understand the difference between processfocused and product-focused clients. This understanding is developed from both client and project execution perspectives. Negative client feedback and inefficient management of stakeholder needs Continuous client feedback and development of an adequate project management transition to the BAU state

8 Contact us For more information about KPMG Financial Risk Management services, contact your local KPMG representative or visit Jitendra Sharma Partner Advisory and Global Leader, Financial Risk Management Services T: E: Josè A. Baraybar Director Advisory T: E: Michael Dempsey Manager Advisory T: E: kpmg.com independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG name, logo and cutting through complexity are

TDWI strives to provide course books that are content-rich and that serve as useful reference documents after a class has ended.

TDWI strives to provide course books that are content-rich and that serve as useful reference documents after a class has ended. Previews of TDWI course books offer an opportunity to see the quality of our material and help you to select the courses that best fit your needs. The previews cannot be printed. TDWI strives to provide

More information

Essential Elements for Any Successful Project

Essential Elements for Any Successful Project In this chapter Learn what comprises a successful project Understand the common characteristics of troubled projects Review the common characteristics of successful projects Learn which tools are indispensable

More information

Assessing the Appropriate Level of Project, Program, and PMO Structure

Assessing the Appropriate Level of Project, Program, and PMO Structure PMI Virtual Library 2011 Daniel D. Magruder Assessing the Appropriate Level of Project, Program, and PMO Structure By Daniel D. Magruder, PMP Executive Summary Does your organization have in-flight projects

More information

Sound Transit Internal Audit Report - No. 2014-3

Sound Transit Internal Audit Report - No. 2014-3 Sound Transit Internal Audit Report - No. 2014-3 IT Project Management Report Date: Dec. 26, 2014 Table of Contents Page Background 2 Audit Approach and Methodology 2 Summary of Results 4 Findings & Management

More information

Release Management: Effective practices for IT delivery

Release Management: Effective practices for IT delivery Release Management: Effective practices for IT delivery Introduction Today s health plans face a unique combination of technology challenges due to their complex IT environments. These environments serve

More information

Procurement Programmes & Projects P3M3 v2.1 Self-Assessment Instructions and Questionnaire. P3M3 Project Management Self-Assessment

Procurement Programmes & Projects P3M3 v2.1 Self-Assessment Instructions and Questionnaire. P3M3 Project Management Self-Assessment Procurement Programmes & Projects P3M3 v2.1 Self-Assessment Instructions and Questionnaire P3M3 Project Management Self-Assessment Contents Introduction 3 User Guidance 4 P3M3 Self-Assessment Questionnaire

More information

White Paper. PPP Governance

White Paper. PPP Governance PPP Governance The Governance of Projects, Programs and Portfolios (PPP) (sometimes called project governance for convenience) is the sub-set of corporate and organisational governance 1 focused on assisting

More information

Business Analyst Position Description

Business Analyst Position Description Analyst Position Description September 4, 2015 Analysis Position Description September 4, 2015 Page i Table of Contents General Characteristics... 1 Career Path... 2 Explanation of Proficiency Level Definitions...

More information

P3M3 Portfolio Management Self-Assessment

P3M3 Portfolio Management Self-Assessment Procurement Programmes & Projects P3M3 v2.1 Self-Assessment Instructions and Questionnaire P3M3 Portfolio Management Self-Assessment P3M3 is a registered trade mark of AXELOS Limited Contents Introduction

More information

Strategies to Help Vendors Optimize Their Long-term Global Contracts

Strategies to Help Vendors Optimize Their Long-term Global Contracts THE INDUSTRIAL PERSPECTIVE Strategies to Help Vendors Optimize Their Long-term Global Contracts May 2010 KPMG INTERNATIONAL HAVE YOU CONSIDERED ALL THE ISSUES? The following questions may help vendors

More information

PROJECT MANAGEMENT PLAN Outline VERSION 0.0 STATUS: OUTLINE DATE:

PROJECT MANAGEMENT PLAN Outline VERSION 0.0 STATUS: OUTLINE DATE: PROJECT MANAGEMENT PLAN Outline VERSION 0.0 STATUS: OUTLINE DATE: Project Name Project Management Plan Document Information Document Title Version Author Owner Project Management Plan Amendment History

More information

How To Manage Risk At Atb Financial

How To Manage Risk At Atb Financial Guidelines for Financial Institutions Legislative Compliance Management (LCM) Date: July 2004 Introduction Regulatory risk is the risk of non-compliance with applicable regulatory requirements. For the

More information

Project organisation and establishing a programme management office

Project organisation and establishing a programme management office PROJECT ADVISORY Project organisation and establishing a programme office Leadership Series 1 kpmg.com/nz About the Leadership Series KPMG s Leadership Series is targeted towards owners of major capital

More information

Project Management Office (PMO) Charter

Project Management Office (PMO) Charter Project Management Office (PMO) Charter Information & Communication Technologies 10 January 2008 Information & Communication Technologies Enterprise Application DISCLAIMER Services Project Management Office

More information

Setting up and operationalisation of Enterprise PMOs

Setting up and operationalisation of Enterprise PMOs Setting up and operationalisation of Enterprise PMOs A. Why an EPMO? Entities in private and non-profit/ governmental sectors need to constantly address change due to external and internal forces. These

More information

How To Transform It Risk Management

How To Transform It Risk Management The transformation of IT Risk Management kpmg.com The transformation of IT Risk Management The role of IT Risk Management Scope of IT risk management Examples of IT risk areas of focus How KPMG can help

More information

UNITED NATIONS OFFICE FOR PROJECT SERVICES. ORGANIZATIONAL DIRECTIVE No. 33. UNOPS Strategic Risk Management Planning Framework

UNITED NATIONS OFFICE FOR PROJECT SERVICES. ORGANIZATIONAL DIRECTIVE No. 33. UNOPS Strategic Risk Management Planning Framework UNOPS UNITED NATIONS OFFICE FOR PROJECT SERVICES Headquarters, Copenhagen O.D. No. 33 16 April 2010 ORGANIZATIONAL DIRECTIVE No. 33 UNOPS Strategic Risk Management Planning Framework 1. Introduction 1.1.

More information

B o a r d of Governors of the Federal Reserve System. Supplemental Policy Statement on the. Internal Audit Function and Its Outsourcing

B o a r d of Governors of the Federal Reserve System. Supplemental Policy Statement on the. Internal Audit Function and Its Outsourcing B o a r d of Governors of the Federal Reserve System Supplemental Policy Statement on the Internal Audit Function and Its Outsourcing January 23, 2013 P U R P O S E This policy statement is being issued

More information

ENTERPRISE RISK MANAGEMENT POLICY

ENTERPRISE RISK MANAGEMENT POLICY ENTERPRISE RISK MANAGEMENT Approved by the Audit Committee on 14 February 2003 and adopted by resolution of the Board on 28 March 2003 Revisions approved by the Audit and Risk Committee on 14 February

More information

Placing a Value on Enterprise Risk Management ADVISORY

Placing a Value on Enterprise Risk Management ADVISORY Placing a Value on Enterprise Risk Management ADVISORY Placing a Value on Enterprise Risk Management 1 In turbulent economic times, the case for investing in an enterprise risk management (ERM) program

More information

PMP Examination Tasks Puzzle game

PMP Examination Tasks Puzzle game PMP Examination Tasks Puzzle game Here is a great game to play to test your knowledge of the tasks you will be tested on in the actual examination. What we have done is take each of the domain tasks in

More information

Risk and Contingency Planning. Today s Topics. Key Terms. A Vital Component of Your ICD-10 Program

Risk and Contingency Planning. Today s Topics. Key Terms. A Vital Component of Your ICD-10 Program Risk and Planning A Vital Component of Your ICD-10 Program Today s Topics Key Terms Why is Risk Management Critical for ICD-10? Effective Risk Management and Best Concepts ICD-10 Risk Management Examples

More information

IFAD Policy on Enterprise Risk Management

IFAD Policy on Enterprise Risk Management Document: EB 2008/94/R.4 Agenda: 5 Date: 6 August 2008 Distribution: Public Original: English E IFAD Policy on Enterprise Risk Management Executive Board Ninety-fourth Session Rome, 10-11 September 2008

More information

RISK MANAGEMENT OVERVIEW 2011 RISK CONFERENCE SPONSORED BY THE FEDERAL RESERVE BANK OF CHICAGO AND DEPAUL UNIVERSITY

RISK MANAGEMENT OVERVIEW 2011 RISK CONFERENCE SPONSORED BY THE FEDERAL RESERVE BANK OF CHICAGO AND DEPAUL UNIVERSITY RISK MANAGEMENT OVERVIEW 2011 RISK CONFERENCE SPONSORED BY THE FEDERAL RESERVE BANK OF CHICAGO AND DEPAUL UNIVERSITY PRESENTED BY: LEN WIATR, CHIEF RISK OFFICER Len s Risk Management Philosophy Build a

More information

Monitoring capital projects and addressing signs of trouble

Monitoring capital projects and addressing signs of trouble /01 / Leadership Series 6 PROJECT ADVISORY Monitoring capital projects and addressing signs of trouble Leadership Series 6 kpmg.com/nz About the Leadership Series KPMG s Leadership Series is targeted towards

More information

Project Risk Management

Project Risk Management PROJECT ADVISORY Project Risk Management Leadership Series 9 kpmg.com/nz About the Leadership Series KPMG s Leadership Series is targeted towards owners of major capital programmes, but its content is

More information

ERP Controls Integration

ERP Controls Integration ERP Controls Integration Sustaining Compliance While Implementing Change ADVISORY Contents Introduction 1 The Current Environment 3 The Opportunity: ERP Controls Integration 5 An Approach: Integrating

More information

Development, Acquisition, Implementation, and Maintenance of Application Systems

Development, Acquisition, Implementation, and Maintenance of Application Systems Development, Acquisition, Implementation, and Maintenance of Application Systems Part of a series of notes to help Centers review their own Center internal management processes from the point of view of

More information

Cisco Unified Communications and Collaboration technology is changing the way we go about the business of the University.

Cisco Unified Communications and Collaboration technology is changing the way we go about the business of the University. Data Sheet Cisco Optimization s Optimize Your Solution using Cisco Expertise and Leading Practices Optimizing Your Business Architecture Today, enabling business innovation and agility is about being able

More information

ERP Implementation Risk: Identifying, Monitoring and Remediating Issues Throughout the Project to Ensure Success

ERP Implementation Risk: Identifying, Monitoring and Remediating Issues Throughout the Project to Ensure Success ERP Implementation Risk: Identifying, Monitoring and Remediating Issues Throughout the Project to Ensure Success Introduction From hardware and software implementation to support services, organizations

More information

Business Continuity Position Description

Business Continuity Position Description Position Description February 9, 2015 Position Description February 9, 2015 Page i Table of Contents General Characteristics... 2 Career Path... 3 Explanation of Proficiency Level Definitions... 8 Summary

More information

Guidance Note: Corporate Governance - Board of Directors. March 2015. Ce document est aussi disponible en français.

Guidance Note: Corporate Governance - Board of Directors. March 2015. Ce document est aussi disponible en français. Guidance Note: Corporate Governance - Board of Directors March 2015 Ce document est aussi disponible en français. Applicability The Guidance Note: Corporate Governance - Board of Directors (the Guidance

More information

Operational Risk Management Program Version 1.0 October 2013

Operational Risk Management Program Version 1.0 October 2013 Introduction This module applies to Fannie Mae and Freddie Mac (collectively, the Enterprises), the Federal Home Loan Banks (FHLBanks), and the Office of Finance, (which for purposes of this module are

More information

Helping Enterprises Succeed: Responsible Corporate Strategy and Intelligent Business Insights

Helping Enterprises Succeed: Responsible Corporate Strategy and Intelligent Business Insights I D C E X E C U T I V E I N S I G H T S Helping Enterprises Succeed: Responsible Corporate Strategy and Intelligent Business Insights May 2009 By Albert Pang, Research Director, Enterprise Applications

More information

University of St. Gallen Law School Law and Economics Research Paper Series. Working Paper No. 2008-19 June 2007

University of St. Gallen Law School Law and Economics Research Paper Series. Working Paper No. 2008-19 June 2007 University of St. Gallen Law School Law and Economics Research Paper Series Working Paper No. 2008-19 June 2007 Enterprise Risk Management A View from the Insurance Industry Wolfgang Errath and Andreas

More information

OE PROJECT CHARTER TEMPLATE

OE PROJECT CHARTER TEMPLATE PROJECT : PREPARED BY: DATE (MM/DD/YYYY): Project Name Typically the Project Manager Project Charter Last Modified Date PROJECT CHARTER VERSION HISTORY VERSION DATE (MM/DD/YYYY) COMMENTS (DRAFT, SIGNED,

More information

ACMP Certification Committee. Methods for Demonstrating Competency

ACMP Certification Committee. Methods for Demonstrating Competency ACMP Certification Committee Methods for Demonstrating Competency 6 February 2014 CCMP Assessment of Competency ACMP s Certification Committee recommended a two-part assessment through which CCMP applicants

More information

How to successfully manage your mega-project

How to successfully manage your mega-project BUILDING, CONSTRUCTION & REAL ESTATE How to successfully manage your mega-project Part II Stakeholder communication and project controls integration kpmg.com 2 Building, Construction & Real Estate How

More information

Effective reporting for construction projects: increasing the likelihood of project success

Effective reporting for construction projects: increasing the likelihood of project success PROJECT ADVISORY Effective reporting for construction projects: increasing the likelihood of project success Thought Leadership Series 13 kpmg.com/nz About the Leadership Series KPMG s Leadership Series

More information

Consulting. PMOver Transforming the Program Management Office into a Results Management Office

Consulting. PMOver Transforming the Program Management Office into a Results Management Office Consulting PMOver Transforming the Management Office into a Results Management Office Executive summary Regardless of size and complexity, most programs encounter hurdles and issues. Many are able to address

More information

Developing a Free Credit Score Program. kpmg.com

Developing a Free Credit Score Program. kpmg.com Developing a Free Credit Score Program kpmg.com Developing a Free Credit Score Program 1 Introduction U.S. regulators, including the Consumer Financial Protection Bureau (CFPB), have begun urging lenders

More information

Designing an Operational Risk Program for a Community Bank Stephan Salvador Managing Director, Risk Management Consulting

Designing an Operational Risk Program for a Community Bank Stephan Salvador Managing Director, Risk Management Consulting Consulting and Professional Services Designing an Operational Risk Program for a Community Bank Stephan Salvador Managing Director, Risk Management Consulting Designing an Operational Risk Program for

More information

Project Management Office Charter

Project Management Office Charter Old Dominion University Office of Computing and Communication Services Project Management Office Charter Version: 1.0 Last Update: February 18, 2010 Created By: Anthony Fox, PMP OCCS Project Management

More information

Crosswalk Between Current and New PMP Task Classifications

Crosswalk Between Current and New PMP Task Classifications Crosswalk Between Current and New PMP Task Classifications Domain 01 Initiating the Project Conduct project selection methods (e.g., cost benefit analysis, selection criteria) through meetings with the

More information

Change Management Trends in Governance Structures

Change Management Trends in Governance Structures Change Management Trends in Governance Structures Cheryl Yaeger BenchMark Consulting International OVERVIEW Financial institutions are operating in a very dynamic marketplace today; this requires the ability

More information

RSA ARCHER AUDIT MANAGEMENT

RSA ARCHER AUDIT MANAGEMENT RSA ARCHER AUDIT MANAGEMENT Solution Overview INRODUCTION AT A GLANCE Align audit plans with your organization s risk profile and business objectives Manage audit planning, prioritization, staffing, procedures

More information

Beyond risk identification Evolving provider ERM programs

Beyond risk identification Evolving provider ERM programs Beyond risk identification Evolving provider ERM programs March 2016 At a glance PwC conducted research to assess the state of enterprise risk management (ERM) within healthcare providers and found many

More information

ASAE s Job Task Analysis Strategic Level Competencies

ASAE s Job Task Analysis Strategic Level Competencies ASAE s Job Task Analysis Strategic Level Competencies During 2013, ASAE funded an extensive, psychometrically valid study to document the competencies essential to the practice of association management

More information

Begin Your BI Journey

Begin Your BI Journey Begin Your BI Journey As part of long-term strategy, healthcare entities seek opportunities for continuous improvement in order to meet the changing needs of their patients while also maintaining compliance

More information

SDLC- Key Areas to Audit in IT Projects ISACA Geek Week 2013 8/21/2013. PwC

SDLC- Key Areas to Audit in IT Projects ISACA Geek Week 2013 8/21/2013. PwC SDLC- Key Areas to Audit in IT Projects ISACA Geek Week 2013 8/21/2013 1 Introductions and Projects Overview Presenters Charlie Miller and Andrew Gerndt The Coca-Cola Company Principal IT Auditors Atlanta,

More information

INTERAGENCY GUIDANCE ON THE ADVANCED MEASUREMENT APPROACHES FOR OPERATIONAL RISK. Date: June 3, 2011

INTERAGENCY GUIDANCE ON THE ADVANCED MEASUREMENT APPROACHES FOR OPERATIONAL RISK. Date: June 3, 2011 Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation Office of the Comptroller of the Currency Office of Thrift Supervision INTERAGENCY GUIDANCE ON THE ADVANCED MEASUREMENT

More information

PROJECT MANAGEMENT FRAMEWORK

PROJECT MANAGEMENT FRAMEWORK PROJECT MANAGEMENT FRAMEWORK DOCUMENT INFORMATION DOCUMENT TYPE: DOCUMENT STATUS: POLICY OWNER POSITION: INTERNAL COMMITTEE ENDORSEMENT: APPROVED BY: Strategic document Approved Executive Assistant to

More information

Stakeholder management and. communication PROJECT ADVISORY. Leadership Series 3

Stakeholder management and. communication PROJECT ADVISORY. Leadership Series 3 /01 PROJECT ADVISORY Stakeholder management and communication Leadership Series 3 kpmg.com/nz About the Leadership Series KPMG s Leadership Series is targeted towards owners of major capital programmes,

More information

GUIDANCE NOTE FOR DEPOSIT-TAKERS. Operational Risk Management. March 2012

GUIDANCE NOTE FOR DEPOSIT-TAKERS. Operational Risk Management. March 2012 GUIDANCE NOTE FOR DEPOSIT-TAKERS Operational Risk Management March 2012 Version 1.0 Contents Page No 1 Introduction 2 2 Overview 3 Operational risk - fundamental principles and governance 3 Fundamental

More information

Project Management Office Best Practices

Project Management Office Best Practices Project Management Office Best Practices Agenda Maturity Models (Industry & PMO) PMO Areas of Expertise (Scale & Scope) Project Management Office Process Model Project Management Framework PMO Implementation

More information

IT Governance (Worthwhile Exercise?) January 10, 2013 Presented by Chad Murphy, CISA

IT Governance (Worthwhile Exercise?) January 10, 2013 Presented by Chad Murphy, CISA IT Governance (Worthwhile Exercise?) January 10, 2013 Presented by Chad Murphy, CISA Things we hear! You are making it much too complex. It is an IT problem! We do not know where to start! We do this already!

More information

Leveraging data analytics and continuous auditing processes for improved audit planning, effectiveness, and efficiency. kpmg.com

Leveraging data analytics and continuous auditing processes for improved audit planning, effectiveness, and efficiency. kpmg.com Leveraging data analytics and continuous auditing processes for improved audit planning, effectiveness, and efficiency kpmg.com Leveraging data analytics and continuous auditing processes 1 Executive

More information

Process-Based Business Transformation. Todd Lohr, Practice Director

Process-Based Business Transformation. Todd Lohr, Practice Director Process-Based Business Transformation Todd Lohr, Practice Director Process-Based Business Transformation Business Process Management Process-Based Business Transformation Service Oriented Architecture

More information

The growing importance of EPMO (Enterprise Project Management Office) in today s organizations

The growing importance of EPMO (Enterprise Project Management Office) in today s organizations The growing importance of EPMO (Enterprise Project Management Office) in today s organizations Abstract: This paper discusses the growing importance of Enterprise PMO in organizations. The paper highlights

More information

Transforming risk management into a competitive advantage kpmg.com

Transforming risk management into a competitive advantage kpmg.com INSURANCE RISK MANAGEMENT ADVISORY SOLUTIONS Transforming risk management into a competitive advantage kpmg.com 2 Transforming risk management into a competitive advantage Assessing risk. Building value.

More information

KPMG s Financial Management Practice. kpmg.com

KPMG s Financial Management Practice. kpmg.com KPMG s Financial Management Practice kpmg.com 1 KPMG s Financial Management Practice KPMG s Financial Management (FM) practice, within Advisory Management Consulting, supports the growing agenda and increased

More information

Dallas IIA Chapter / ISACA N. Texas Chapter. January 7, 2010

Dallas IIA Chapter / ISACA N. Texas Chapter. January 7, 2010 Dallas IIA Chapter / ISACA N. Texas Chapter Auditing Tuesday, October Project 20, 2009 Management Controls January 7, 2010 Table of Contents Contents Page # Project Management Office Overview 3 Aligning

More information

Integrated Risk Management:

Integrated Risk Management: Integrated Risk Management: A Framework for Fraser Health For further information contact: Integrated Risk Management Fraser Health Corporate Office 300, 10334 152A Street Surrey, BC V3R 8T4 Phone: (604)

More information

Keys to a Successful Outsourcing Transition

Keys to a Successful Outsourcing Transition Keys to a Successful Outsourcing Transition finance.arvato.com Getting it Right the First Time: Keys to a Successful Outsourcing Transition A large part of success in outsourcing depends on a seamless

More information

Program Management Professional (PgMP) Examination Content Outline

Program Management Professional (PgMP) Examination Content Outline Program Management Professional (PgMP) Examination Content Outline Project Management Institute Program Management Professional (PgMP ) Examination Content Outline April 2011 Published by: Project Management

More information

RISK MANAGEMENT REPORT (for the Financial Year Ended 31 March 2012)

RISK MANAGEMENT REPORT (for the Financial Year Ended 31 March 2012) RISK MANAGEMENT REPORT (for the Financial Year Ended 31 March 2012) Integrated Risk Management Framework The Group s Integrated Risk Management Framework (IRMF) sets the fundamental elements to manage

More information

The 2015 Manufacturing ERP Report

The 2015 Manufacturing ERP Report The 2015 Manufacturing ERP Report. All rights reserved. No unauthorized reproduction without the author s written consent. All references to this publication must cite Panorama Consulting Solutions as

More information

Enterprise Risk Management

Enterprise Risk Management Cayman Islands Society of Professional Accountants Enterprise Risk Management March 19, 2015 Dr. Sandra B. Richtermeyer, CPA, CMA What is Risk Management? Risk management is a process, effected by an entity's

More information

6/8/2016 OVERVIEW. Page 1 of 9

6/8/2016 OVERVIEW. Page 1 of 9 OVERVIEW Attachment Supervisory Guidance for Assessing Risk Management at Supervised Institutions with Total Consolidated Assets Less than $50 Billion [Fotnote1 6/8/2016 Managing risks is fundamental to

More information

Project Management Professional (PMP) Examination Content Outline

Project Management Professional (PMP) Examination Content Outline Project Management Professional (PMP) Examination Content Outline Project Management Institute Project Management Professional (PMP) Examination Content Outline June 2015 Published by: Project Management

More information

Title here. Successful Business Model Transformation. in the Financial Services Industry. KPMG s Evolving World of Risk Management SECTORS AND THEMES

Title here. Successful Business Model Transformation. in the Financial Services Industry. KPMG s Evolving World of Risk Management SECTORS AND THEMES SECTORS AND THEMES Successful Business Model Transformation Title here in the Financial Services Industry Additional information in Univers 45 Light 12pt on 16pt leading KPMG s Evolving World of Risk Management

More information

What you need to know about PMOs

What you need to know about PMOs What you need to know about PMOs By Bahar Banyahmad 2009 Overview With PMOs becoming more pervasive in large and medium enterprises, this whitepaper explores different PMO models and functions. It explores

More information

Sustainability reporting What you should know kpmg.com

Sustainability reporting What you should know kpmg.com SUSTAINABILITY Sustainability reporting What you should know kpmg.com b Sustainability reporting What you should know KPMG LLP (KPMG) defines corporate sustainability as adopting business strategies that

More information

OPTIMUS SBR. Optimizing Results with Business Intelligence Governance CHOICE TOOLS. PRECISION AIM. BOLD ATTITUDE.

OPTIMUS SBR. Optimizing Results with Business Intelligence Governance CHOICE TOOLS. PRECISION AIM. BOLD ATTITUDE. OPTIMUS SBR CHOICE TOOLS. PRECISION AIM. BOLD ATTITUDE. Optimizing Results with Business Intelligence Governance This paper investigates the importance of establishing a robust Business Intelligence (BI)

More information

Commonwealth of Puerto Rico Tax Reform Assessment Project

Commonwealth of Puerto Rico Tax Reform Assessment Project Commonwealth of Puerto Rico Tax Reform Assessment Project Readiness for Change May 30, 2014 Table of Contents 1 Introduction 3 2 Key Elements Required for a Successful Change Management Transformation

More information

Organizational Change Management Methodology. Tools and Techniques to aid Project Implementation

Organizational Change Management Methodology. Tools and Techniques to aid Project Implementation Organizational Change Management Methodology Tools and Techniques to aid Project Implementation Today s Objectives Discuss the Organizational Change Management team and explore ways Organizational Change

More information

Assuring success in large business programs Internal audit s role in strategic risk management

Assuring success in large business programs Internal audit s role in strategic risk management The resilience, reputation and value of a company can be positively influenced by successful transformation projects. Assuring success in large business programs Internal audit s role in strategic risk

More information

In control: how project portfolio management can improve strategy deployment. Case study

In control: how project portfolio management can improve strategy deployment. Case study Case study In control: how project portfolio can improve strategy deployment Launching projects and initiatives to drive revenue and achieve business goals is common practice, but less so is implementing

More information

Data Governance Implementation

Data Governance Implementation Service Offering Implementation Leveraging Data to Transform the Enterprise Benefits Use existing data to enable new business initiatives Reduce costs of maintaining data by increasing compliance, quality

More information

IT Governance Overview

IT Governance Overview IT Governance Overview Contents Executive Summary... 3 What is IT Governance?... 4 Strategic Vision and IT Guiding Principles... 4 Campus-Wide IT Strategic Vision... 4 IT Guiding Principles... 4 The Scope

More information

Project initiation - 5 Mistakes Portfolio Managers Make

Project initiation - 5 Mistakes Portfolio Managers Make WHITE PAPER The Manager s Guide to Avoiding 7 Project Portfolio Pitfalls EXECUTIVE SUMMARY In today s management by projects mindset, portfolio managers and PMO directors are challenged with ensuring successful

More information

GUIDELINES FOR THE MANAGEMENT OF OPERATIONAL RISK

GUIDELINES FOR THE MANAGEMENT OF OPERATIONAL RISK SUPERVISORY AND REGULATORY GUIDELINES: PU-0412 Operational Risk 25 th November, 2013 GUIDELINES FOR THE MANAGEMENT OF OPERATIONAL RISK 1. INTRODUCTION 1.1. The Central Bank of The Bahamas ( the Central

More information

Sound Practices for the Management of Operational Risk

Sound Practices for the Management of Operational Risk 1 Sound Practices for the Management of Operational Risk Authority 1.1 Section 316 (4) of the International Business Corporations Act (IBC Act) requires the Commission to take any necessary action required

More information

Driving Excellence in Implementation and Beyond The Underlying Quality Principles

Driving Excellence in Implementation and Beyond The Underlying Quality Principles SAP Thought Leadership Paper SAP Active Quality Management Driving Excellence in Implementation and Beyond The Underlying Quality Principles 2014 SAP AG or an SAP affiliate company. All rights reserved.

More information

Tying It All Together: Practical ERM Integration. Richard Scanlon Vice President Enterprise Risk Management CIGNA Corporation

Tying It All Together: Practical ERM Integration. Richard Scanlon Vice President Enterprise Risk Management CIGNA Corporation Tying It All Together: Practical ERM Integration Richard Scanlon Vice President Enterprise Risk Management CIGNA Corporation November 16, 2007 1 Agenda Basis for ERM Integration ERM Objectives ERM Focus

More information

IT Service Provider and Consumer Support Engineer Position Description

IT Service Provider and Consumer Support Engineer Position Description Engineer Position Description February 9, 2015 Engineer Position Description February 9, 2015 Page i Table of Contents General Characteristics... 1 Career Path... 2 Explanation of Proficiency Level Definitions...

More information

Linking Risk Management to Business Strategy, Processes, Operations and Reporting

Linking Risk Management to Business Strategy, Processes, Operations and Reporting Linking Risk Management to Business Strategy, Processes, Operations and Reporting Financial Management Institute of Canada February 17 th, 2010 KPMG LLP Agenda 1. Leading Practice Risk Management Principles

More information

ADVISORY SERVICES. Risk management in an evolving world. Making the case for social media governance. kpmg.com

ADVISORY SERVICES. Risk management in an evolving world. Making the case for social media governance. kpmg.com ADVISORY SERVICES Risk management in an evolving world Making the case for social media governance kpmg.com Risk management in an evolving world 3 Why good governance should be the foundation of your social

More information

CISM ITEM DEVELOPMENT GUIDE

CISM ITEM DEVELOPMENT GUIDE CISM ITEM DEVELOPMENT GUIDE Updated January 2015 TABLE OF CONTENTS Content Page Purpose of the CISM Item Development Guide 3 CISM Exam Structure 3 Writing Quality Items 3 Multiple-Choice Items 4 Steps

More information

ESKITP7145.01 Manage IT service delivery performance metrics

ESKITP7145.01 Manage IT service delivery performance metrics Overview This sub-discipline covers the competencies required to manage the monitoring, analysis and communication of IT service delivery performance metrics. Monitoring service level performance is a

More information

Building and Sustaining a Strong Organization Amid Challenge And Change KPMG LLP

Building and Sustaining a Strong Organization Amid Challenge And Change KPMG LLP Building and Sustaining a Strong Organization Amid Challenge And Change KPMG LLP The Issue Today s market realities offer businesses little choice but to embrace change. Companies in almost every industry

More information

The Manager s Guide to Avoiding 7 Project Portfolio Pitfalls

The Manager s Guide to Avoiding 7 Project Portfolio Pitfalls The Manager s Guide to Avoiding 7 Project Portfolio Pitfalls In today s management by projects mindset, portfolio managers and PMO directors are challenged with ensuring successful delivery in addition

More information

Aligning Quality Management Processes to Compliance Goals

Aligning Quality Management Processes to Compliance Goals Aligning Quality Management Processes to Compliance Goals MetricStream.com Smart Consulting Group Joint Webinar February 23 rd 2012 Nigel J. Smart, Ph.D. Smart Consulting Group 20 E. Market Street West

More information

Understanding and articulating risk appetite

Understanding and articulating risk appetite Understanding and articulating risk appetite advisory Understanding and articulating risk appetite Understanding and articulating risk appetite When risk appetite is properly understood and clearly defined,

More information

How to successfully manage your mega-project

How to successfully manage your mega-project How to successfully manage your mega-project Part I Early planning and organizing for success kpmg.com 2 Building, Construction & Real Estate How to successfully manage your mega-project A three-part series

More information

OPERATIONAL RISK RISK ASSESSMENT

OPERATIONAL RISK RISK ASSESSMENT OPERATIONAL RISK RISK ASSESSMENT 1 OVERVIEW Inherent Risk Risk Management Composite or Net Residual Risk Trend 2 INHERENT RISK Definition Sources Identification Quantification 3 Definition OPERATIONAL

More information

Data Governance Implementation

Data Governance Implementation Service Offering Data Governance Implementation Leveraging Data to Transform the Enterprise Benefits Use existing data to enable new business initiatives Reduce costs of maintaining data by increasing

More information

pm4dev, 2007 management for development series The Project Management Processes PROJECT MANAGEMENT FOR DEVELOPMENT ORGANIZATIONS

pm4dev, 2007 management for development series The Project Management Processes PROJECT MANAGEMENT FOR DEVELOPMENT ORGANIZATIONS pm4dev, 2007 management for development series The Project Management Processes PROJECT MANAGEMENT FOR DEVELOPMENT ORGANIZATIONS PROJECT MANAGEMENT FOR DEVELOPMENT ORGANIZATIONS A methodology to manage

More information

Board of Directors Meeting 12/04/2010. Operational Risk Management Charter

Board of Directors Meeting 12/04/2010. Operational Risk Management Charter Board of Directors Meeting 12/04/2010 Document approved Operational Risk Management Charter Table of contents A. INTRODUCTION...3 I. Background...3 II. Purpose and Scope...3 III. Definitions...3 B. GOVERNANCE...4

More information

Excerpt from the ACGR on Enterprise Risk Management

Excerpt from the ACGR on Enterprise Risk Management Excerpt from the ACGR on Enterprise Risk Management F. RISK MANAGEMENT SYSTEM 1) Disclose the following: (a) Overall risk management philosophy of the company; Objectives and Policies The Group has significant

More information