Integrating ERM with Strategic Planning and Strategic Objective Annual Reviews

Transcription

1 The 2018 AFERM ANNUAL ERM SUMMIT: Innovate, Integrate, Motivate Integrating ERM with Strategic Planning and Strategic Objective Annual Reviews Panel Members: KAREN WEBER MONTRICE YAKIMOV LIS KANN DEPT. OF TREASURY Moderator: ANDREA PEOPLES SBA Breakout Session Track 3D 3

2 Treasury Alignment to Strategic Plan

3 Risk Management and Strategic Planning Timeline Date Oct-Nov Nov Feb Mar-Apr Mar-Apr Apr-May Jun Milestone Fall Quarterly Performance Reviews Risk Profile Updates Due SOAR Analysis Meetings SOAR Clearance and Briefings Risk Profile Clearance and Briefings Spring Quarterly Performance Reviews Anticipated Strategic Review Meeting with OMB

4 Risk Profile Template Risk Short Name: Top Risks - (OFFICE OR BUREAU HERE) Risk Description: Risk Rating Impact (1-5) Likelihood (1-5) Departmental Strategic Objectives Affected: Potential Impacts Current Status / Progress Made Trending Proposed Mitigations Milestones

5 Strategic Objective Review Template Strategic Objective 1.1 Objective Statement: Desired Outcome: Internal Partners: Overview: Evidence of Progress: Strategy 1: Strategy 2: Strategy 3: Challenges (Ongoing Issues): Risks (Anticipated Future Events): Key Next Steps:

6 US Treasury Department Bureau of the Fiscal Service Mission Duties Promote the financial integrity and operational efficiency of the federal government through exceptional accounting, financing, collections, payments and shared services. Provide central payment services to federal program agencies Operate the U.S. government s collections and deposit systems Provide government-wide accounting and reporting services Manage the collection of delinquent debt owed to the U.S. government Borrow the money needed to operate the U.S. government through the sale of marketable, savings, and special-purpose U.S. Treasury securities Account for and service the public debt Key Facts Makes $8 trillion available to fund Federal Government operations by hosting 269 auctions of marketable Treasury securities Disburses 85% of all federal payments (more than $3 trillion) Collects $4 trillion in revenues, financing federal operations

7 s Describe Challenges or Risks that could Negatively Impact Operations or Strategic Objectives each Quarter Risk Description Format: The risk that XXX will occur, due to YYY, resulting in ZZZ. Trigger (YYY) Trigger (YYY) Risk (XXX) Impact (ZZZ) Impact (ZZZ) Impact (ZZZ) Risk Description Format: Helps the Office of Enterprise Risk Management (OERM) and business area leaders to more effectively: (a) Identify root causes, (b) Consider the adequacy of controls; and (c) Develop risk responses. s report priority risks considering Inherent and Residual Likelihood and Impact. OERM leverages priority risk reports to create the Enterprise Risk Profile. OERM conducts additional analysis to identify potential priority risks to strategic objectives and patterns that may warrant enterprise/cross cutting mitigations.

8 Template: Analyzing/Categorizing Risks to Strategic Objectives Bus Area Illustrations for Discussion Risks to Strategic Objectives Human Capital Cyber Security Opportunity Cost Neg. Impact on Daily Ops. The risk that the has insufficient subject matter experts to complete the project successfully, resulting in delayed implementation x of IT modernization. The risk that public online access to sensitive information will be poorly designed or include vulnerabilities, resultingin possible exposure of PII. x x Reputation Political Compliance The risk that business process redesign is delayed due to gaps in contractor performance, resulting in continued use of manual processes, deferred operational efficiencies, and delays in the modernization initiative. x Illustration A Study of Risk Categories can Identify Important Patterns and Risk Concentrations

9 TTB FY 2019 Organization Chart Equal Employment Opportunity and Diversity Advancement Administrator Deputy Administrator TTB currently has about 480 FTE TTB s Assistant Administrator, External Affairs/Chief of Staff also serves as TTB s Chief Risk Officer The Office of Strategic Planning and Program Evaluation reports directly to the Chief of Staff, ensuring integration and alignment between TTB s ERM and strategic planning functions External Affairs/COS Field Operations Permitting & Taxation Headquarters Operations Management/ CFO Info Services/CIO Office of Chief Counsel Office of Industry and State Outreach Trade Investigations National Revenue Center Alcohol Labeling and Formulation Finance and Performance Budgeting Assistant Chief Counsel General Law and Ethics Congressional and Public Affairs Tax Audit International Affairs Acquisitions and Facilities Management Assistant Chief Counsel Field Operations Office of Communications Intelligence Regulations and Rulings Human Resources Assistant Chief Counsel Tax and Trade Strategic Planning and Program Evaluation Office of Analytics Scientific Services Training and Professional Development

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11 TTB Annual Strategic Planning and ERM Processes Q1: October-December Strategic Planning: Launch Annual Business Plan ERM: Conduct Annual Business Plan Risk Assessment Treasury: Fall QPR; Risk Profile Update Q2: January-March Strategic Planning: Develop Annual Business Plan (informed by risk assessments) ERM: Consolidate Risk Assessments for Risk Profile Treasury: Budget QPR Strategic Planning: Manage Performance and Annual Business Plan ERM: Conduct -Level Risk Assessments Treasury: SOAR Meetings Q4: July-September Strategic Planning: Mid-year Strategic Management Meeting ERM: Conduct Strategic Objective and Executive Team Risk Assessments Treasury: Spring QPR Q3: April-June