Guide

Risk Management

A Driver of Enterprise Value in the Emerging Environment

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Table of

Contents

© 2011 KPMG International. KPMG International is a Swiss cooperative. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

About the survey

2

Perceptions post the meltdown

5

Executive summary

7 11

Current trends and practices

Risk governance

Summarizing key challenges and the way forward

21

Imperative 1 Enhancing board governance of risk

Case study: Utilizing balanced scorecard to oversee risks

12 15 16 17 18

Risk identification/ assessment

22 24 26 27 30

Imperative 2 Linking risks to strategy through KRIs

Case study: Linking objectives, strategy and risks to key risk indicators

Risk aggregation/ mitigation

Risk monitoring/ reporting

Imperative 3 Instilling a robust risk culture

Case study: Undertaking a risk culture survey as a precursor to ERM implementation

Risk culture

Imperative 4 Position the CRO as a strategic business advisor

Case study: CRO helping risk function add value by bringing in the “outside in” perspective

Imperative 5 Integrating risk management at an enterprise level

Case study: Developing a single view of risk by integrating governance, risk and compliance

© 2011 KPMG International. KPMG International is a Swiss cooperative. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind...