OCEG - Principled Performance and GRC

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  1. Principled Performance

    Principled Performance How principled performance is the new normal and the imperative for integrating governance, performance, risk, internal control and compliance management.

    Presenter's Notes: 1

  2. Learning Objectives

    Learning Objectives Understand the key concepts related to Principled PerformanceUnderstand drivers for, and implications of applying Principled Performance to your businessUnderstand how GRC is related to Principled Performance

    Presenter's Notes: 2

  3. Big Picture

    Big Picture OBJECTIVESstrategic, operational, customer, process, compliance objectives BUSINESS MODELstrategy, people, process, technology and infrastructure in place to drive toward objectives

    Presenter's Notes: 3

  4. Big Picture

    Big Picture OBJECTIVESstrategic, operational, customer, process, compliance objectives BUSINESS MODELstrategy, people, process, technology and infrastructure in place to drive toward objectives UNCERTAINTY ?

    Presenter's Notes: 4

  5. Big Picture

    Big Picture OBJECTIVESstrategic, operational, customer, process, compliance objectives BUSINESS MODELstrategy, people, process, technology and infrastructure in place to drive toward objectives OPPORTUNITIES OPPORTUNITIES OPPORTUNITIES

    Presenter's Notes: 5

  6. Big Picture

    OPPORTUNITIES OPPORTUNITIES Big Picture OBJECTIVESstrategic, operational, customer, process, compliance objectives BUSINESS MODELstrategy, people, process, technology and infrastructure in place to drive toward objectives OPPORTUNITIES OBSTACLES

    Presenter's Notes: 6

  7. Big Picture

    Big Picture OBJECTIVESstrategic, operational, customer, process, compliance objectives BUSINESS MODELstrategy, people, process, technology and infrastructure in place to drive toward objectives OPPORTUNITIES OPPORTUNITIES OPPORTUNITIES MANDATORY BOUNDARYboundary established by external forces including laws, government regulation and other mandates. OBSTACLES

    Presenter's Notes: 7

  8. Big Picture

    Big Picture OBJECTIVESstrategic, operational, customer, process, compliance objectives BUSINESS MODELstrategy, people, process, technology and infrastructure in place to drive toward objectives OPPORTUNITIES OPPORTUNITIES OPPORTUNITIES MANDATORY BOUNDARYboundary established by external forces including laws, government regulation and other mandates. OBSTACLES VOLUNTARY BOUNDARYboundary defined by management including organizational values, contractual obligations, voluntary policies and other promises.

    Presenter's Notes: 8

  9. Big Picture

    Big Picture BUSINESS MODELstrategy, people, process, technology and infrastructure in place to drive toward objectives MANDATORY BOUNDARYboundary established by external forces including laws, government regulation and other mandates. VOLUNTARY BOUNDARYboundary defined by management including organizational values, contractual obligations, voluntary policies and other promises. OBJECTIVESstrategic, operational, customer, process, compliance objectives

    Presenter's Notes: 9

  10. Past Few Years

    Past Few Years S&P 500 Performance

    Presenter's Notes: 10

  11. Past Few Years

    Past Few Years S&P 500 Performance Massive Ethics and Integrity Risks Materialize

    Presenter's Notes: 11

  12. Past Few Years

    Past Few Years S&P 500 Performance Massive Interrelated and Systemic Risks Materialize Massive Ethics and Integrity Risks Materialize

    Presenter's Notes: 12

  13. Past Few Years

    Past Few Years S&P 500 Performance Uncertainty Integrity

    Presenter's Notes: 13

  14. Takeaway #1

    Takeaway #1The past decade provided the perfect storm to drive change- demanding stakeholders- increased volume and complexity of risks- high costs+- lousy economy- visible failures

    Presenter's Notes: 14

  15. Principled Performance

    Principled Performance reliable achievement of objectiveswhile addressing uncertaintyand acting with integrity

    Presenter's Notes: 15

  16. Principled Performance

    Principled Performance reliable achievement of objectiveswhile addressing uncertaintyand acting with integrity WHAT

    Presenter's Notes: 16

  17. Principled Performance

    Principled Performance reliable achievement of objectiveswhile addressing uncertaintyand acting with integrity WHAT HOW

    Presenter's Notes: 17

  18. Takeaway #2

    Takeaway #2Whats and Hows

    Presenter's Notes: 18

  19. Principled Performance

    Principled Performance reliable achievement of objectiveswhile addressing uncertaintyand acting with integrity 1 2 3 4

    Presenter's Notes: 19

  20. Principle #1: Reliable Achievement of Objectives

    Principle #1: Reliable Achievement of Objectives reliable achievement of objectiveswhile addressing uncertaintyand acting with integrity Achievement of Objectives 1 Intentional Measured Visible Objectives are stated and not accidental. Performance is measured. Performance is transparent to stakeholders.

    Presenter's Notes: 20

  21. Principle #2: Addressing Uncertainty

    Principle #2: Addressing Uncertainty reliable achievement of objectiveswhile addressing uncertaintyand acting with integrity Addressing Uncertainty 2 Holistic Proactive Rigorous Uncertainty about the future includes both risk and reward. You must proactively manage the pursuit of reward mindful of the risk. You can be wrong  but must be thoughtful and rigorous.

    Presenter's Notes: 21

  22. Principle #3: Acting with Integrity

    Principle #3: Acting with Integrity reliable achievement of objectiveswhile addressing uncertaintyand acting with integrity Acting with Integrity 3 Mandatory Voluntary Realistic Honor mandatory promises compelled by stakeholders. Honor voluntary promises made to stakeholders. Clean up the mess if a promise is broken.

    Presenter's Notes: 22

  23. Principle #4: Reliable

    Principle #4: Reliable reliable achievement of objectiveswhile addressing uncertaintyand acting with integrity Reliable 4 Expected Truthful Assured Performance is steady and sustained with relatively few surprises. Information related to performance is reasonably free from error and bias. Information related to performance can be trusted.

    Presenter's Notes: 23

  24. Takeaway #3

    Takeaway #3Principled Performance is a superior approach in the current climate

    Presenter's Notes: 24

  25. ELABORATE

    ELABORATE

    Presenter's Notes: 25

  26. Illustration 1: Good Intentions

    Illustration 1: Good Intentions PrincipledPerformance GoodIntentions Just because an organization articulates objectives and promises that you agree with does NOT make them a principled performer

    Presenter's Notes: 26

  27. Illustration 2: Disagreement

    Illustration 2: Disagreement PrincipledPerformance Disagreement You may disagree with an organizations objectives and promises, but they may INDEED be a principled performer

    Presenter's Notes: 27

  28. POSITIVE

    POSITIVEvsNORMATIVE

    Presenter's Notes: 28

  29. POSITIVE

    POSITIVEvsNORMATIVE Objective & Testable

    Presenter's Notes: 29

  30. POSITIVE

    POSITIVEvsNORMATIVE Objective & Testable Based on Preferences

    Presenter's Notes: 30

  31. POSITIVE

    POSITIVEvsNORMATIVE Objective & Testable

    Presenter's Notes: 31

  32. IMPLICATIONS

    IMPLICATIONS

    Presenter's Notes: 32

  33. Big Picture

    Big Picture reliable achievement of objectiveswhile addressing uncertaintyand acting with integrity

    Presenter's Notes: 33

  34. Integration & Orchestration

    Integration & Orchestration

    Presenter's Notes: 34

  35. Requires Integration & Orchestration

    Requires Integration & Orchestration

    Presenter's Notes: 35

  36. 5-10% of enterprise processes

    5-10% of enterprise processes

    Presenter's Notes: 36

  37. 5-10% of enterprise processeshoweverthey are...

    5-10% of enterprise processeshoweverthey are pervasive & costly

    Presenter's Notes: 37

  38. Requires Integration & Orchestration

    Requires Integration & Orchestration

    Presenter's Notes: 38

  39. Requires Integration & Orchestration

    Requires Integration & Orchestration

    Presenter's Notes: 39

  40. Requires Integration & Orchestration

    Requires Integration & Orchestration

    Presenter's Notes: 40

  41. Requires Integration & Orchestration

    Requires Integration & Orchestration

    Presenter's Notes: 41

  42. Requires Integration & Orchestration

    Requires Integration & Orchestration

    Presenter's Notes: 42

  43. Requires Integration & Orchestration

    Requires Integration & Orchestration

    Presenter's Notes: 43

  44. WHY?

    WHY?

    Presenter's Notes: 44

  45. Why Integrate & Orchestrate?

    Why Integrate & Orchestrate?

    Presenter's Notes: 45

  46. GRC

    GRCmeans to the end

    Presenter's Notes: 46

  47. GRC Capability Defined

    GRC Capability Defined a capability that enables an organization to reliably achieve objectives while addressing uncertainty and acting with integrity

    Presenter's Notes: 47

  48. Composition

    Composition

    Presenter's Notes: 48

  49. G-R-C

    if it includes all of these areas then why onlyG-R-C

    Presenter's Notes: 49

  50. Because

    Because while there are other functions and disciplines beyond governance, risk and compliance that play a role  13-letter acronyms are cumbersome IA, CSR, E, HR, X, Y, Z G, R, C

    Presenter's Notes: 50

  51. G-R-C

    andG-R-CRepresent Distinct Perspectives

    Presenter's Notes: 51

  52. What does this capability look like?

    What does this capability look like?

    Presenter's Notes: 52

  53. GRC

    GRC

    Presenter's Notes: 53

  54. GRC

    GRC Principled Performance Governance Performance Management Internal Control Ethics & Culture Management Compliance Management Risk Management NACD, OECD, King 3Domain-Specific Governance (IT, Project, etc.) Balanced ScorecardStrategic PlanningBusiness IntelligenceDecision ScienceQuality Management COSOCoCoTurnbull US FSGAS 3806Quality ManagementDomain-Specific COSO ERMISO 31000 / BSI 31100UK Orange BookIRM / ALARMDomain-Specific (BASEL) Social PsychologyBehavioral EconomicsLearning Theory

    Presenter's Notes: 54

  55. GRC

    GRC Governance Performance Management Internal Control Ethics & Culture Management Compliance Management Risk Management

    Presenter's Notes: 55

  56. GRC Body of Knowledge

    GRC Body of Knowledge Open SourceQuality ControlledComplete8 Major Components40 Major Practices100s Sub-Practices

    Presenter's Notes: 56

  57. GRC Capability Model

    GRC Capability Model INFORM &INTEGRATE 8 INTEGRATED COMPONENTS 8 UNIVERSAL OUTCOMES Enhance Organizational Culture Increase Stakeholder Confidence Prepare & Protect the Organization Prevent, Detect & Reduce Adversity Motivate & Inspire Desired Conduct Improve Responsiveness & Efficiency Optimize Economic & Social Value CULTURE & CONTEXT CULTURE & CONTEXT Achieve Business Objectives

    Presenter's Notes: 57 (c) 2010 OCEG GRC Fundamentals

  58. Learn More

    Learn More

    Presenter's Notes: 58

OCEG - Principled Performance and GRC