It's 835 Enterprise Risk Management Chapter 12 Measuring Per

Its 835 Enterprise Risk Managementchapter 12measuring Performance At

Measure Performance at Intuit University of Cumberlands 1 introduction Intuit’s ERM Journey ERM Maturity Model Benefits of Measuring Performance in ERM Models ERM Performance Measurement and Reporting Conclusion 2 University of Cumberlands Intuit erm journey Began with ad hoc risk management Very common entry point Escalated to ERM when seminal event occurred Desire was to stop firefighting and start prevention Intuit ERM Core Principles Enterprise-wide risk framework Risk assessment is ongoing Focus on most significant risks Ownership and accountability Measure and monitor performance 3 University of Cumberlands Erm maturity model University of Cumberlands 4 Benefits of measuring performance in erm models Key Performance Indicators (KPI) Based on business objectives Quantitative and qualitative KPI Leading and lagging indicators Input, process, and output indicators KPIs must be Tangible Flexible Standardized Outcome or objective focused 5 University of Cumberlands Erm performance measurement and reporting First evolution -ERM process adoption Second evolution –Risk Mitigation Process Management Third Evolution – Multidimensional Risk Management Performance Measurement 6 University of Cumberlands Erm process adoption University of Cumberlands 7 Risk mitigation process management University of Cumberlands 8 Multidimensional Risk Management Performance Measurement University of Cumberlands 9 conclusion University of Cumberlands 10 At Intuit, risk management is everyone’s responsibility ERM must be a core business competency Coordination is a key to success Recognizes Upside opportunity Downside risk ERM process is regularly audited ERM is an integral part of Intuit’s operating mode

Paper For Above instruction

Enterprise risk management (ERM) plays a crucial role in ensuring that organizations effectively identify, assess, and manage risks that could impede their strategic objectives. The case of Intuit, as analyzed through the lens of the University of Cumberlands framework, exemplifies a comprehensive journey from initial ad hoc risk practices to a mature, enterprise-wide ERM system. This progression underscores the importance of measurement and performance evaluation in fostering resilient risk management practices that align with business goals.

Introduction to Intuit’s ERM Journey

Intuit’s ERM journey began with a reactive approach, characterized by informal and isolated risk management efforts. As the organization faced a seminal event—possibly a significant operational or financial risk—it recognized the need for a structured ERM system. The shift aimed to transition from firefighting to prevention, emphasizing proactive risk identification and mitigation. This evolution was driven by a desire to embed risk management into the organizational culture, making it a shared responsibility across all levels.

Core Principles of Intuit’s ERM Framework

Intuit adopted core principles that support continuous enterprise-wide risk assessment, ongoing monitoring, and clear ownership of risks. The enterprise-wide risk framework ensures that risks are not managed in silos but are integrated into overall strategic objectives. Risk ownership was assigned to accountable individuals or teams, fostering accountability and timely responses. This approach underscores the importance of measuring and monitoring performance to track risk mitigation effectiveness and inform decision-making.

ERM Maturity Model and Its Significance

The University of Cumberlands ERM Maturity Model illustrates a staged development of risk management capabilities. Initial phases include establishing the ERM process and risk assessment, with subsequent evolution towards integrating risk mitigation and multidimensional risk management. Progressing along this maturity spectrum enables organizations like Intuit to improve risk identification accuracy, response strategies, and performance measurement precision.

Benefits of Measuring Performance in ERM Models

Key performance indicators (KPIs) are instrumental for evaluating ERM effectiveness. These indicators are aligned with core business objectives and are both quantitative and qualitative. Leading indicators forecast potential risks before they materialize, whereas lagging indicators assess past risk mitigation outcomes. Input, process, and output metrics provide a comprehensive view of ERM activities. KPIs must be tangible, flexible, standardized, and focused on desired outcomes to drive continuous improvement and accountability.

Stages of ERM Performance Measurement and Reporting

Intuit's ERM evolution involved three major stages:

• Adoption of the ERM process, establishing a foundation for risk identification and assessment.
• Implementation of risk mitigation process management, focusing on action plans and response effectiveness.
• Adoption of multidimensional risk management performance measures, integrating various risk perspectives and metrics for holistic oversight.

This staged approach enhances risk visibility, accountability, and strategic alignment, ultimately supporting better organizational resilience.

Implementation at Intuit

At Intuit, risk management is integrated into all operational facets, fostering a culture where everyone takes responsibility. The ERM process is regularly audited, which ensures accountability and continuous improvement. The organization recognizes both upside opportunities and downside risks, balancing innovation with risk mitigation. Effective coordination across departments emphasizes the importance of a unified approach to enterprise risk management, embedding ERM into the company’s core operating mode.

Conclusion

In conclusion, mature ERM practices, such as those illustrated by Intuit, demonstrate that performance measurement is essential for aligning risk management with strategic objectives. Through a structured maturity model and robust KPIs, organizations can proactively address risks, seize opportunities, and foster resilience. As ERM becomes an integral part of the organizational culture, its effectiveness can be continually enhanced, supporting long-term success and stability.

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