Enterprise Risk Management
March 16, 2017
Photo credit: Teddy Kel ey (Stocksnap.io)

Agenda
 Team Introductions
 ERM Overview
 Project Management
 Exercise
 Team Rules
Clayton Kramp, Mines Student, Applied Math ‘18

Team Introductions
Tell us…
Who you are
What you do
How long you’ve been at Mines
Something you geek out on
Photo credit: Samuel Zel er (Stocksnap.io)

Team Introductions
Academic Af airs
 Jahi Simbai
 Andrea Morello
 Patti Nichols
 Vanessa Gonzales/Nichole Bigley
Administration & Operations
 Trish Green
 Barb O'Kane
 Katie Schmalzel
 Natalie Martinez
 Tressa Constantineau Ries/Deputy
Controller
Student Life
Photo credit: Samuel Zel er (Stocksnap.io)
 Jenny Nichols
 Bob Mask

IA’s Role
Source Credit: The Institute of Internal Auditors

“One is too small a number to
achieve greatness. No
accomplishment of real value has
ever been achieved by a human
working alone.”
- John C. Maxwell

Risks
Risks are EVERYWHERE in many
forms
 Operational risk
 Strategic risk
 Compliance risk
 Reputational risk
 Financial risk
 Health and safety risk
 Cyber risks
Photo credit: Laine Metzler (Stocksnap.io)

Optimal Risk-Taking Yields Maximum Value
Not Enough Risk-
Excessive Risk-Taking
Taking
Expected
Enterprise Value
Optimized Risk
Taking
Risk Level
Source Credit: COSO: Risk Assessment in Practice by Deloitte & Touche, LLP

Source Credit: Revised COSO ERM Framework (2016)

BENEFITS OF IMPLEMENTING ERM
Achieving Mines’ objectives
Purposeful resource allocation
Informed decisions
Collaboration
Break down barriers
Impact of interrelated risks

PROPOSED ERM FRAMEWORK
Accountability
Oversight
Finance and Audit Commit ee
Consult
Assurance
Advise
Executive Leadership
Develop ERM
Define Mines’
Framework
Risk Appetite
Consult
Determine
Assess Risk
Responses
ERM Advisory Team

ERM Survey Key Highlights
Purpose: Gain an understanding of how risk management occurs at
Mines
• 16 participants
• 3 areas: Academic Departments, A&O, and Student Life
• 7 Questions

ERM Survey Key Highlights
Varying perceptions of Mines risk appetite
On a scale from 1 (risk averse) to 5 (risk taker), how would you define
Mines risk appetite?
7
6
5
ses 4
respon 3
of# 2
1
0
1
2
3
4
5
Very Risk Averse
Somewhat Risk
Neutral
Somewhat Takes
High Risk Taker
Averse
Risks
Academic Affairs
Admin & Operations
Student Life

ERM Survey Key Highlights
we take
unknown
There is a certain level of risk related to research
risks due to not
knowing the
potential
impact
How would you define
Mines’ risk appetite?
inconsistent-we are
very risk averse on some things
that aren't high priority and vice
we have a "do what you want" culture and any policy
versa
following is considered too risk averse

ERM Survey Key Highlights
Is there a common meaning of risk across campus?
NO
How do you define risk?
 “Risk is the likelihood that a person may not be harmed or suffers adverse
health effects if exposed to a hazard
 “Management of uncertain or unanticipated conditions that impact business
operations/goals”
 “Rule breaking or results in harm to CSM”
 “I generally think of risk as the likelihood of something (generally bad) – a
threat - being realized
 “Don’t know
 “Your definition of types above is the first time I’ve specifically considered a
definition
 “Causing significant harm to Mines from a financial, reputation, and
academic standing perspective”

ERM Survey Key Highlights
Challenges/barriers to risk management
No barriers or chal enges
Other
Lack of authority
Lack of knowledge
Lack of collaboration across departments
Lack of training
Lack of tools/resources
0%
10%
20%
30%
40%
50%
60%
70%

Next Steps
Establish roles,
commitment and
define risk
Create and train core
Develop
team of risk owners and
framework to
leaders
assess risk
Expand the team and
Perform initial risk
refine the process
assessment
Monitor performance and
report on metrics

Planned Milestones
2/28/2017
5/31/2017
10/31/2017
2017
Socialize ERM and identify
participants
Formalize goals
Develop framework
12/31/2016
4/30/17
8/31/17
Determine need & make
Train participants
Define risk appetite
recommendations

Planned Milestones (cont.)
4/30/2018
Ongoing
2018
Prioritize risks and develop
response plans
Communication
2/28/2018
6/30/2018
Perform initial risk
Monitor performance and
assessment
reporting

Questions

ERM Charter & Project Plan
Vision Statement for Project Management
“Project Management tools and techniques are common knowledge across the
Mines community and are leveraged, in the course of business, to increase the
success of projects.”
Link:
ppm.mines.edu
Contact:
Clayton Durkee
Project & Portfolio Manager
cdurkee@mines.edu
303-273-3019



Team Exercise
Get with a partner and plan a surprise party for a friend. Each person takes turns
saying a sentence, starting each sentence with “Yes, but”…
…now do the same thing but instead of “Yes, but” say “Yes, and.”
https://www.youtube.com/embed/HOfVon-
4dzc?autoplay=1&hd=1&rel=0&KeepThis=true&TB_iframe=true&height=370&w
idth=640?autoplay=1&hd=1&rel=0
Source: Avish Parashar, www.dinghappens.com

Team Rules!
1. “Yes, and”
2.3.4.5.6.7.8.9.10.

Next Meeting
March 28, 2017 from 3:30pm to 5pm
Student Center E134
Action Items
 Review charter and project plan and provide feedback by
March 27 (All)

Document Outline