3-hr Virtual Seminar: Core Risk Management Skills for Auditors and Facilitators

Why Should You Attend:

Following the global financial crisis of 2008 regulators around the world have called on companies to significantly increase their attention to creating and maintaining effective risk management processes. The session will help gain in-depth knowledge to professionals such as –

Internal Auditors: Internal auditors that want to help their board of directors meet their responsibility to oversee the effectiveness of risk management processes, internal auditors that want to play important roles helping their organization implement more effective risk management processes, and internal auditors that want to comply with the IIA IPPF standard 2120.

ERM Specialists/Operational Risk Groups/ERM Facilitators: There is growing evidence that traditional approaches to ERM involving brain storming workshops and creation and maintenance of “risk registers” have not generated the benefits claimed by ERM proponents. This session will allow you to see why traditional ERM has been sub-optimal and what needs to be done differently to deliver maximum value from money being spent on ERM.

Compliance Specialists: Traditional compliance methods focused on dissemination of corporate policies and oversight of policies to ensure they are complied with have seen high failure instances. Risk management methods and tools can be used to identify and “treat” the statistically probable risks that result in illegality and non-compliance with corporate rules.

At the end of this webinar, the speaker will handle your specific questions related to the topic.

Learning Objectives:

• Learn why traditional approaches to ERM and Internal audit are not well equipped to meet new board risk oversight expectations.
• Learn what regulators now expect boards to do in the area of risk oversight and governance.
• Learn how risk assessment methods have evolved over the past 20 years globally.
• Learn the core elements of effective risk assessment and management including the “Demand driven/objective centric” approach to risk management and assurance.
• Learn how to best support boards that want to meet the new NACD board risk oversight expectations spelled out in the NACD Blue Ribbon Commission Report “Risk Governance: Balancing Risk and Rewards”.

Areas Covered in this Seminar:

• Escalating risk management and oversight expectations in the public and private sector – what specifically do senior management and boards need to demonstrate to regulators, investors, credit rating agencies, customers, and others. What’s the role of internal auditors and ERM facilitators?
• Evolution of generally accepted risk management frameworks and terminology, including COSO ERM 2004, the new COSO Internal Control Integrated Framework expected in exposure draft form October 2011, ISO 31000, RIMS risk management maturity, IRM risk frameworks, and more.
• Why thousands of ERM initiatives around the world have failed – “ERM WRONG TURNS”.
• Understanding the mechanics of the different approaches to assess and report on risk – pros and cons of each approach.
• Why “Objective-Centric” risk management and assurance provides maximum business benefits and avoids fatal flaws of many traditional ERM approaches.
• Defining an ERM universe – practical methods to create an “OBJECTIVES REGISTER”
• Why the sudden increase in focus on defining and monitoring “risk appetite”? What is it, how do you assess/measure it, how can senior executives and boards demonstrate they have defined what it is and have implemented frameworks to measure and monitor it.
• Step 1- often overlooked – before commencing a risk assessment identify clear end result business objectives to be assessed. Understand the difference between what needs to be achieved as an end result outcome and “ways to achieve”.
• Practical methods to identify key elements of the “internal and external risk context”.
• Practical methods to identify and assess risk, including “black swan risks” - low probability/massive impact risks. (NOTE: brain storming alone often fails to identify key risks)
• Creating a consolidated report on residual risk status for your board.

Who Will Benefit:

• ERM/Op risk staff groups
• Internal audit chief audit executives
• Internal audit directors/managers
• Internal auditors
• ERM workshop facilitators

Instructor Profile:

Tim J. Leech, FCPA, FCA, CIA, CRMA, CFE, CCSA is Managing Director Risk Oversight Inc. (“RO”) RO focuses on helping companies more effectively manage risk and assurance to meet escalating due diligence expectations and add real value. He has over 25 years of experience in the ERM, internal audit and forensic accounting fields, including expert witness testimony in civil and criminal proceedings and global experience helping public and private sector organizations with internal audit transformation initiatives and the design, implementation and maintenance of integrated GRC/ERM frameworks. He developed the world’s first training seminar for internal auditors focused on assessing and reporting on management risk management processes and has delivered Standard 2120 training to hundreds of internal auditors to date. He is the author of the December 2012 Conference Board Director Notes publication “Board Oversight of Management’s Risk Appetite and Tolerance” and the globally acknowledged white paper “The High Cost of ERM Herd Mentality”. A sample of clients he has provided services to include Mobil Oil, RBC, CIBC, Telstra, Boots Plc, Comptroller General Of Argentina, Telstra, British Airport Authority, SVG Capital, BellSouth, Farm Credit Canada, Treasury Board Secretariat, Institute of Management Accountants, Manulife, MBNA, National Bank, Potash Corporation, Independent Order of Foresters, Environment Canada, Ontario Provincial government, OPP, Rabobank, ABN Amro, Nordea, Scandia, Fortis, Transport Canada, Northern & Indian Affairs, Parks Canada, Shell, City of Detroit, Australian Taxation Authority, Tucson Electric, and many others.

In September 2009 Tim was awarded the first Canadian Outstanding Contributor to the Profession of Internal Auditing award in recognition of over 25 years of global service. In 1997 Leech was awarded the designation Fellow of the Institute of Chartered Accountants (FCPA/FCA) in recognition of his public service and contributions in the fields of risk and control management. Leech has provided training for tens of thousands of public and private sector professional accountants, auditors and risk management specialists in Canada, the U.S., the EU, Australia, South America, Africa and the Middle and Far East. He has received worldwide recognition as a pioneer, thought leader and trainer.

Topic Background:

Post the 2008 crisis, Boards are being told by regulators and their director associations (e.g. National Association of Corporate Directors (“NACD”) in the U.S. and CICA/Institute of Corporate Directors (“ICD”) in Canada) that a core responsibility is to oversee and ensure the effectiveness of the organization’s risk management processes. Internal auditors are now responsible via professional practice standard 2120 with assessing and improving the effectiveness of their organization’s risk management processes. At the same time there is increasing evidence that traditional ERM processes that have relied heavily on “brain storming” and risk registers are ill equipped to meet the risk oversight expectations and contribute to value creation and preservation. Traditional internal audit methods including “risk-based” audit plans, spot in time direct report audits, and annual reports based on audits completed on a small percentage of the assurance universe are increasingly seen as not up to the task of supporting directors responsible for overseeing management’s risk appetite and tolerance. These developments call for new approaches to ERM, risk management and internal audit, in short, NEXT GENERATION ASSURANCE methods.

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