Reference no: EM131483941

Develop an ERM Framework and Strategy for presentation to a Government Risk Funding Committee

Requirements : ERM Strategy and Approach - ERM Framework

Requirements : Company Executive Summary

Scenario :

The Federal government has approved a business revival fund (government bailout) to assist failed companies to recommence trading if they meet certain requirements. The initiative has been identified as a key new strategy to assist companies that have been impacted specifically by certain factors (ERM failure) including risk failure and whether the company is too big to fail (or is in an industry that has been deemed as requiring support and assistance).

Where the company demonstratescertain characteristics (size of company resources: people, systems, assets, or industry classification) and the company failure is categorisedas ‘high impact to communities and economy' they are able to avail of this funding scheme. The scheme stipulates that new owners must be appointed and that they must meet specific criteria in regards to Enterprise Risk management.The new ownership team must have a CEO, Board and CFO toprepare a detailed ERM strategy for review. The CEO, Board (NED) and CFO will need to present a separate individual executive summary of their role and responsibilities and how they intend to manage the new ERM framework to demonstrate that they have a detailed understanding of ERM and how it will assist the company to remain sustainable in the future. These individual representations by the CEO, CFO and NED will need to be videoed.

Other key stakeholders will be required to view the videos and make their comments available for review back to the Risk committee

Assignment Group Outputs

- You will be allocated to a cohort ieGroup 1
- You will be given a task with 2 other students in your cohort to prepare and present an ERM Framework
- A Company will be allocated to you from the list provided.
- You will need to your own research on this company so to complete your group activity
- In your cohort you will develop a strategic ERM framework (supporting documentation)for implementation across the company and address the key issues and controls that impacted and forced the company to fail
- In your cohort you will summarize the ERM Framework approach, for implementation across the company and address the key issues and controls that impacted and forced the company to fail.
- For the sake of this scenario we will presume that the company has been bought out by a large SME a precondition of funding approval is that the SME will be the CEO and a board will be appointed.

- Determine main reason for failure and devise a strategy to implement certain controls to rectify key areas of ERM failure
- Design , develop and complete an ERM Framework and include key areas of focus for review ie if a financial area of the business failed (reporting preparation or fraud) you need to as a group determine how this could be better managed using strategic ERM approach in designing an ERM Framework that details strategies for:Internal environment, objective setting, identifying risks, assessing risks, responding to risks, control activities, information and communication monitoring and reporting of risks Business continuity and emerging risks.
- Identify an ERM framework approach for utilisation, and explain why the approach is being used and preferred ie ISO 31000:2009, COSO
- Key reporting requirements will need to be developed including a ‘risk profile', ‘risk matrix/heat map', ‘ERM strategy - including ERM Culture and approach, values and mission, capability & communications approach, risk responsibilities and ownership, management of enterprise risks and interrelated risks', business continuity plan and emerging risk strategy'.
- Templates to assist with this process will be identified throughout the unit.

Roles and Responsibilities

- Within the group you will be allocated roles ieCEO(additional responsibilities include HR and training, Communications and Reporting), BOARD Director, CFO ( is responsible for Finance, Risk and Audit)
o CEO
o NED
o CFO
- As a group you will also be required to define the responsibilities of each role in regards to the ERM Framework this information will be used to prepare for your individual assignment component

Individual Assignment Requirement

Requirements :ERM Executive Summary
Requirements : Video presentation of your ERM responsibilities (you are presenting your Executive summary to the Governance and Risk Committee)

CEO
You will be expected to:
o Develop an Executive Summary pertinent to your role within the Cohort. If you have been allocated the role of CEO then you will need to be familiar with all of the responsibilities that this role entails with regards to the Company and also in regards to ERM.
o The Group work component should have ascertained the role and responsibilities (accountabilities) of the CEO.
o Consider and detail the role that the CEO plays in regards to the internal environment
o Consider and detail youradditional responsibilities in regards to HR, Training, Communications and Reporting.
o Clearly articulate whatyour role entailsand your responsibilities in regards to implementing the ERM framework.
o Consider and detailhow the ERM Framework will assist you with decision making and reporting to the board.
o Within your group work you will have already defined the responsibilities of each role in regards to the ERM (CEO, CFO and NED), you will need to use this information as it will assist you in preparing for your individual assignment component. Your responsibilities must be consistent with the ERM strategy that you have devised in your Group Cohort approach.
o Deliver your Executive summary in a presentation via video(5 minutes each presentation, 15 minutes in total for cohort)which will be recorded and assessed
o Allocated a separate score for assessment of your component
o There is a marking recording template for your to review to help you to understand how you will be scored for your individual component of work
o Your video may be viewed by other students

You will be expected to :
o Develop an Executive Summary pertinent to your role within the Cohort. If you have been allocated the role of CFO then you will need to be familiar with all of the responsibilities that this role entails with regards to the Company and also in regards to ERM.
o The Group work component should have ascertained the role and responsibilities (accountabilities) of the CFO.
o Consider and detail the role that the CFO plays in regards to the internal environment
o Consider and detail your additional responsibilities in regards to Finance, Risk, and Audit.
o Clearly articulate what your role entails and your responsibilities in regards to implementing the ERM framework.
o Consider and detail how the ERM Framework will assist you with managing risk and also why the implementation processes need to have transparency across the entire enterprise from a Key Risk and Key Controls perspective (including ownership)
o Consider how the new ERM framework will support assurance and audit processes
o Within your group work you will have already defined the responsibilities of each role in regards to the ERM (CEO, CFO and NED), you will need to use this information as it will assist you in preparing for your individual assignment component. Your responsibilities must be consistent with the ERM strategy that you have devised in your Group Cohort approach.
o Deliver your Executive summary in a presentation via video (5 minutes each presentation, 15 minutes in total for cohort) which will be recorded and assessed
o Allocated a separate score for assessment of your component
o There is a marking recording template for your to review to help you to understand how you will be scored for your individual component of work
o Your video may be viewed by other students

Assignment :

Requirements

Your ERM Framework must include the following identifiable sections:
1. Group work - Cover Page which shows the title for your cohort Group, including names and student numbers, the date of submission.
2. Group Work Table of Contents: which indicates the major headings in your ERM Framework along with appropriate page numbers.
3. Group Enterprise Risk Management Framework :
- clearly sets out the ERM problem that is being resolved by the new ERM framework
- sets out the proposed strategies and responsibilities (including key stakeholders)
4. Group ERM Framework Presentation: which clearly sets out full details of your proposed approach and chosen ERM governance standard:
- describing clear depiction of approach and requirements of each component of the ERM framework
- providing descriptions of key risks and controls
- providing a description of your intended controls and risk event management process
. details your proposed procedures for:
- recording of risks, control of risks
- key risk and control owners
- communicating risks
- report and monitoring of risks
- risk reporting timelines
- timeline for ERM implementation completion and post implementation review

5 Group Video Presentation of Executive Summary:
o You will be required to provide as part of your assessmentan Executive summary that you have presented via video.
o The expectation is that you will be presenting a short PowerPoint pack that has been professionally prepared detailing what your role and responsibility are in relation to delivery, implementation and monitoring reporting of the ERM Framework.

References: which lists, using Deakin or Harvard style, all sources cited and/or quoted in ERM framework and associated documents ie executive summary and associated documents ie risk profile etc.
Appendices: as appropriate [Appendices are not counted as part of this assignment].
It is important that we see that you can appropriately apply all of what you have learned from this unit
o Pay close attention to the clarity of your writing and expression, organisation and structure of your assignment, referencing style, proofreading, completeness of your list of references and appropriately dealing with quoted material from those references.