Welcome Enterprise Risk Management and related themes

1. Welcome Enterprise Risk Management  (and related themes) 25th November 2008 Scottish Water, Watermark Office, The Alba Centre, Livingston, EH54 7HH

2. Welcome & Domestic Arrangements Karen Jane Stewart Risk Management � Scottish Water

3. Agenda Introductions Karen Jane Stewart Enterprise Risk Management: Where are we now? Scott Nicholl Eileen Abbess � Network Rail Round Table Discussion Student Slot Other business Dates for next year

4. Institute of Risk Management Risk management's professional education body based in London Key Objectives: Education Qualifications Good Practice Partnership Worldwide membership, drawn from industry, commerce, consultancy and the public sector Regional Groups Special Interest Groups

5. Enterprise Risk Management

6. Discussion Points The role of ERM ERM and corporate culture Dedicated ERM resources Establishing ERM strategies Looking ahead 

7. The Role of ERM�.What is it?

9. The Role of ERM�.Questions, Questions, Questions�

10. The Role of ERM�. Maturity Levels Undeveloped � The organization is aware of risk but has no structured responses implemented Formalized � Basic frameworks and processes are being implemented in parts of the organization with inconsistent results Established � Formal and consistent processes are established across the organization Embedded � Integrated processes are implemented across the organization and embedded within business planning systems Optimized � Risk management is perceived to be an enabling capability for the organization with clear knowledge sharing and continuous improvement Undeveloped � The organization is aware of risk but has no structured responses implemented Formalized � Basic frameworks and processes are being implemented in parts of the organization with inconsistent results Established � Formal and consistent processes are established across the organization Embedded � Integrated processes are implemented across the organization and embedded within business planning systems Optimized � Risk management is perceived to be an enabling capability for the organization with clear knowledge sharing and continuous improvement

11. ERM and Corporate Culture�.Risk Culture? �Employees are charged with conducting their business affairs in accordance with the highest ethical standards. An employee shall not conduct himself or herself in a manner which directly or indirectly would be detrimental to the best interests of the company or in a manner which would bring to the employee financial gain separately derived as a direct consequence of his or employment with the company�

12. ERM and Corporate Culture�.It�s All About Communication!

13. Voluntary (skydiving) vs involuntary (having mobile phone base station near your house) Control / Non-control: Driving a car vs getting on a plane Familiar (e.g. phenomena) vs unfamiliar (SARS) Voluntary (skydiving) vs involuntary (having mobile phone base station near your house) Control / Non-control: Driving a car vs getting on a plane Familiar (e.g. phenomena) vs unfamiliar (SARS)

16. ERM and Corporate Culture�. Culture is about shared meaning�

20. ERM and Corporate Culture�. Key Attributes of An Effective Risk Culture

21. ERM and Corporate Culture�. ERM is about integration�.

22. ERM and Corporate Culture�. How does change work?

25. ERM and Corporate Culture�. What are the key levers of culture? Risk awareness Common language Risk Appetite Training & Development Communication and Engagement Risk Ownership and Accountability Performance & Recognition

33. Road to Success?

34. Questions

35. Enterprise Risk Management

36. Enterprise Risk Management The role of ERM ERM and corporate culture Dedicated ERM resources Establishing ERM strategies Looking ahead