christine ferrusi ross michael rasmussen
TRANSCRIPT
![Page 1: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/1.jpg)
Which Consultants Can Do Enterprise Risk Management Consulting?Christine Ferrusi Ross Michael Rasmussen
Principal Analyst Vice President
Forrester Research
November 4, 2005. Call in at 10:55 a.m. Eastern Time
![Page 2: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/2.jpg)
2Entire contents © 2005 Forrester Research, Inc. All rights reserved.
What is driving enterprise risk management (ERM)?
GovernanceCorporate
disasters
Regulatory
actions
![Page 3: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/3.jpg)
3Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Risk and compliance drivers and trends• Key drivers: Organizations face mounting pressures driving
them toward a structured approach to enterprise risk and compliance management.
» Multiplicity of risk
» Increased accountability
» Fragmentation and duplication of effort
• 2005 trends: These drivers result in the following 2005 trends in risk and compliance management as organizations begin to build their approach to risk and compliance management.
» Adoption of an ERM framework
» Managed and measured compliance
» Tool consolidation and integration
» Integration into enterprise architecture
» Establishment of a chief risk officer
![Page 4: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/4.jpg)
4Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Risk and compliance must respond to numerous pressures
Org
![Page 5: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/5.jpg)
5Entire contents © 2005 Forrester Research, Inc. All rights reserved.
OCEG compliance framework
governance
competitive practices
employment
financial assurance/anti-fraud
information management
international dealings
workplace health/safety
environmental
product quality/safety
government dealings (USA)
intellectual property
Illustrative Example
Employment domain supplements
• Compensation
• Executive Compensation
• Workplace Violence Benefits
• Anti-Harassment
• Anti-Discrimination
• Contingent Workforce
• Hiring/Retention
• Termination/Reduction
• Employment information privacy
• Accommodation/leave
• Labor/collective bargaining
• Global mobility/immigration
• Anti-Retaliation/Whistleblowing
• Employment torts
• Finance/Banking
• Insurance
• Biotechnology
• Automotive
• Chemical
• Telecom/Tech
• Oil/Gas
• Healthcare
• Higher Education
• Pharmaceutical
• Utility
• Others . . .
![Page 6: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/6.jpg)
6Entire contents © 2005 Forrester Research, Inc. All rights reserved.
ERM as defined by COSO
► “Enterprise risk management providesa framework for management to effectively deal with uncertainty and associated risk and opportunity, and thereby enhance its capacity to build value.”
![Page 7: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/7.jpg)
7Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Reactive or managed risk management
Responding to risk
Desired state
Current state
Market
Operations
Credit
Compliance
Risk-ignorant
Managed risk
Risk-aware
Gaps
![Page 8: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/8.jpg)
8Entire contents © 2005 Forrester Research, Inc. All rights reserved.
How we graded ERM consultants
![Page 9: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/9.jpg)
9Entire contents © 2005 Forrester Research, Inc. All rights reserved.
The Forrester Wave™: Enterprise Risk Management Consultants
![Page 10: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/10.jpg)
10Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Details behind the ERM Consultants Wave
![Page 11: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/11.jpg)
11Entire contents © 2005 Forrester Research, Inc. All rights reserved.
BearingPoint
![Page 12: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/12.jpg)
12Entire contents © 2005 Forrester Research, Inc. All rights reserved.
BearingPoint is best suited for engagements focusing on specific risks
• ERM service offering is strong in specific silos of risk management but is limited in its ability to articulate a broad ERM vision.
• This means that the service is an especially good fit for buyers who:
» Need help with specific risk areas.
» Require integration of risk management into the technology architecture.
![Page 13: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/13.jpg)
13Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Deloitte
![Page 14: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/14.jpg)
14Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Deloitte is best suited for defining ERM strategy and governance
• ERM service offering is strong in ERM strategy and governance consulting but shows limitations in its ability to integrate ERM into the technical infrastructure.
• This means that the service is an especially good fit for buyers who:
» Require interaction on ERM with executives and the Board.
» Have to develop an overall ERM strategy.
» Need industry-specific ERM guidance.
![Page 15: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/15.jpg)
15Entire contents © 2005 Forrester Research, Inc. All rights reserved.
IBM
![Page 16: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/16.jpg)
16Entire contents © 2005 Forrester Research, Inc. All rights reserved.
IBM is best suited for ERM technology integration
• ERM service offering is strong in technology services and future direction/growth plans but requires further growth in its strategy and organizational consulting offering for ERM.
• This means that the service provider is an especially good fit for buyers who:
» Require ERM to get operationalized into the technology infrastructure.
» Want strong client references/satisfaction.
![Page 17: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/17.jpg)
17Entire contents © 2005 Forrester Research, Inc. All rights reserved.
PricewaterhouseCoopers
![Page 18: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/18.jpg)
18Entire contents © 2005 Forrester Research, Inc. All rights reserved.
PricewaterhouseCoopers is best suited for strategy and risk taxonomy
• ERM service offering is strong, particularly in ERM strategy and risk taxonomy/framework, but lacks a significant technology advisory practice around ERM.
• This means that the service is an especially good fit for buyers who:
» Require thought leadership around ERM.
» Need implementation of an ERM strategy.
![Page 19: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/19.jpg)
19Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Protiviti
![Page 20: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/20.jpg)
20Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Protiviti is best suited for ERM operations development
• ERM service offering is strong, particularly in risk taxonomy, ability to implement ERM operations, and knowledge management. However, Protiviti has relatively limited market presence.
• This means that the service is an especially good fit for buyers who:
» Are looking for a strong source of ERM thought leadership and shared knowledge.
» Are looking for operational implementation of an ERM program.
![Page 21: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/21.jpg)
21Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Other risk management players
• The market is broader than what we covered:
» Big 4: Ernst & Young, KPMG
» Systems Integrators: Accenture, CSC, HP, EDS
» Mid-tier audit firms: BDO Seidman, Grant Thornton
» Boutique specialists: Jefferson Wells, OpRisk Advisory, Fair Isaacs, Paisley Consulting
![Page 22: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/22.jpg)
22Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Parting thoughts . . .
• Despite how vendors scored, it still gets down to the project team working for your organization.
“Individual client experience will vary depending on the specific team assigned to your engagement.”
![Page 23: Christine Ferrusi Ross Michael Rasmussen](https://reader035.vdocument.in/reader035/viewer/2022081515/5589505bd8b42a02638b45d9/html5/thumbnails/23.jpg)
23Entire contents © 2005 Forrester Research, Inc. All rights reserved.
Michael Rasmussen
Christine Ferrusi Ross
www.forrester.com
Thank you