Author: Philip S. Renaud II, MS, CPCU

Post Executive Education Session Summary: ERM for Nonfinancial Institutions

In our environment of continuing economic uncertainty, attention to risk at the Enterprise Level is important. On May 23, The Risk Institute at The Ohio State University, Fisher School of Business presented, as part of its 2017 Executive Education series, the topic, “Enterprise Risk Management (ERM) for Nonfinancial Institutions”.

This session presented options for businesses just getting started with ERM, businesses trying to improve their current process or those managing economic and business disruptions. The political and economic spheres have ushered in disruptions across the business environment landscape. There is no better time than now to develop and enhance your firm’s enterprise risk management process.  Our session brought to the forefront leading academic work within the ERM space, tools that are being developed to facilitate a smoother process, along with real-world examples of programs currently in place. Our speakers provided applicable examples highlighting the ERM Journey from their industry perspective and how senior leadership approached the challenge.

The session raised conversation with regard to Enterprise Risk Management processes and risk mitigants that businesses can take. Participants involved themselves in a “Think Tank” exercise facilitated by founding member, EY. That facilitated exercise created the opportunity to review a tool that is in place to extend the ERM risk mapping challenges from spreadsheets to a much more user-friendly and interactive process for businesses.

Session leaders, Professor Bernadette Minton, Chair, Fisher College of Business Department of Finance, The Ohio State University; Tammy Izzo, EY Central Region Government and Public Services Leader; Nick Kaufman, Director of Risk Management, Battelle Memorial Institute, Columbus, Ohio and; Ray Roshek, Director of Risk Management and Employee Benefits, Lancaster Colony Corporation collaborated to provide insight into:

  • ERM and the Current Environment
  • Targeted Risk Management for the Current Political Climate
  • Leveraging Risks and Values
  • Investing in ERM: Motivating your Company

The session emphasized how our member companies are going about proactively using risk management tools and methodology to balance the risks related to Enterprise Risk Management in order to meet business goals and enhance business performance.

The session provided thought provoking ideas and advanced The Risk Institute’s unique role in uniting industry thought leaders, academics and highly respected practitioners in an ongoing dialog to advance the understanding and evolution of risk management. The Risk Institute’s conversation about risk management is open and collaborative with its relevance across all industries and its potential for competitiveness and growth.

 

 

Executive Education Session Next Week: ERM for Nonfinancial Institutions

Photo by Jay LaPrete
©2016 Jay LaPrete

In an environment of continuing economic uncertainty, attention to risk at the Enterprise Level is important. On May 23, 2017, The Risk Institute at The Ohio State University Fisher College of Business will be presenting, as part of its Executive Education series, the topic “Enterprise Risk Management (ERM) for Nonfinancial Institutions”.

Whether you are just getting started with ERM, or trying to manage the myriad of economic and business disruptions, or want to learn how you may improve your current process, this session is for you. The political and economic spheres have ushered in disruptions across the business environment landscape. There is no better time than the present to develop or enhance an enterprise risk management process.

The session will raise conversation with regard to the Enterprise Risk Management processes, but will also look at risk mitigants that businesses can take.  Our session will bring together thought leadership from academia, consulting and corporations to discuss the latest ideas and trends within ERM.

Session leaders, Professor Bernadette Minton, Chair, Fisher College of Business Department of Finance, The Ohio State University; Tammy Izzo, EY Central Region Government and Public Services Leader; Nick Kaufman, Director of Risk Management, Battelle Memorial Institute, Columbus, Ohio and; Ray Roshek, Director of Risk Management and Employee Benefits, Lancaster Colony Corporation will collaborate to provide insight into:

  • ERM and the Current Environment
  • Targeted Risk Management for the Current Political Climate
  • Leveraging Risks and Values
  • Investing in ERM: Motivating your Company

The session will emphasize how to proactively use risk management to balance the risks related to Enterprise Risk Management in order to meet business goals and enhance business performance.

The session will provide thought provoking ideas and advance The Risk Institute’s unique role in uniting industry thought leaders, academics and highly respected practitioners in an ongoing dialog to advance the understanding and evolution of risk management. The Risk Institute’s conversation about risk management is open and collaborative with its relevance across all industries and its potential for competitiveness and growth.

 

 

Post Executive Education Series, “Identify, Plan, Protect: Using Cyber to Your Advantage”

On April 19,2017,  The Risk Institute at The Ohio State University, Fisher College of Business held an engaging conversation, as part of its Executive Education series, on the topic, “identify, Plan Protect: Using Cyber to your Advantage”.

As we see on an almost daily basis, Cyber Risk and Crime has become a part of our lives. During the first few weeks of 2017, we witnessed a large restaurant chain’s register payment systems impacted and a large business services firm’s marketing database with over 33 million corporate contacts shared across the web. Without much difficulty multiple other examples are found that cross any number of industries.

We were fortunate to have had Ohio Attorney General Mike DeWine introduce the topic to our audience of executives. AG DeWine is passionate about Cyber Crime and Cyber Risk and its impact upon the citizens of Ohio.

The session focused on raising the conversation of the obvious current situation with regard to Cyber Risk and Crime, but also considered risk mitigants that businesses can take.  The speed at which crisis communication and Public Relations plans are treated and managed are certainly at the forefront of dealing with Cyber challenges within business.  So much so, that the phrase “Fiasco Vortex” has been coined (see Glass Jaw by Eric Dezenhall). In the 21st Century, communication never sleeps. We live in a 24/7 news cycle that demands a much different treatment to Cyber Risk and Cyber business continuity planning.

An organizations business continuity plans will need to be tested to respond to geographic specific exposure that could have wider impact upon the business and it customers. Our speakers highlighted, from their diverse experiences and backgrounds, how companies can take a proactive approach to Cyber Risk and Crime.

Session leaders, Helen Patton, CISO, The Ohio State University; Jim Trainor, SVP, Aon Cyber Solutions and former FBI head of the FBI Cyber Division, Washington, DC; David White, CIO, Battelle Memorial Institute; David Lyon, Senior Manager, The Crumpton Group, LLC, collaborated to provide insight into:

  • Cyber a View from the CISO Trench
  • Cyber Threat Landscape 2017 and Beyond
  • Cyber Security’s Impact on IT Operations
  • The Role of Intelligence in Cyber Attacks: Offense vs. Defense

The session emphasized how to proactively use risk management to balance the risks related to Cyber Risk in order to meet business goals and enhance business performance.

The session did an excellent job of creating thought provoking ideas and advancing The Risk Institute’s unique role in uniting industry thought leaders, academics and highly respected practitioners. This is an ongoing dialog to advance the understanding and evolution of risk management in our world today. The Risk Institute’s conversation about risk management is open and collaborative with its relevance across all industries and its potential for competitiveness and growth.

Identify, Plan, Protect: Using Cyber to Your Advantage

On April 19,2017, The Risk Institute at The Ohio State University, Fisher School of Business will be presenting as part of its 2017 Executive Education series, the topic “identify, Plan Protect: Using Cyber to your Advantage”.

As we see, almost on a daily basis, Cyber Risk and Crime have become part of our lives. During the first few weeks of 2017, we have seen a large restaurant chain’s register payment systems impacted and a large business services firm’s marketing database with over 33 million corporate contacts shared across the web. Without difficulty, multiple other examples are found that cross any number of industries.

We are fortunate to have Ohio Attorney General Mike DeWine introduce the topic to our audience. AG DeWine is passionate about Cyber Crime and Cyber Risk and its impact on the citizens of Ohio.

The session will look to raise conversation on the obvious current situation with regard to Cyber Risk and Crime, and will consider risk mitigants that businesses can take. The speed at which crisis communication and Public Relations plans are treated and managed are certainly at the forefront of dealing with Cyber challenges within business. So much so, that the phrase “Fiasco Vortex” has been coined (see Glass Jaw by Eric Dezenhall). In the 21st Century, communication never sleeps. We live in a 24/7 news cycle that demands a much different treatment to Cyber Risk and Cyber business continuity planning.

An organization’s business continuity plans will need to be tested to respond to geographic specific exposure that could have a wider impact upon the business and it customers. Our speakers will highlight, from their diverse experience and background, how companies can take a proactive approach.

Session leaders, Helen Patton CISO, The Ohio State University; Jim Trainor SVP Aon Cyber Solutions and former FBI head of the FBI Cyber Division, Washington, DC; David White CIO Battelle Memorial Institute; and David Lyon, Senior Manager Crumpton Group, LLC will collaborate to provide insight into:

  • Cyber a View from the CISO Trench
  • Cyber Threat Landscape 2017 and Beyond
  • Cyber Security’s Impact on IT Operations
  • The Role of Intelligence in Cyber Attacks: Offense vs. Defense

The session will emphasize how to proactively use risk management to balance the risks related to Cyber Risk in order to meet business goals and enhance business performance.

The session will provide thought provoking ideas advancing The Risk Institute’s unique role in uniting industry thought leaders, academics and highly respected practitioners in an ongoing dialog to advance the understanding and evolution of risk management. The Risk Institute’s conversation about risk management is open and collaborative with its relevance across all industries and its potential for competitiveness and growth.

Risk Modeling: The Past and the Future

Risk Institute Portraits Fisher Hall - Third Floor Feb-02-2016 Photo by Jay LaPrete ©2016 Jay LaPrete

By  Philip S. Renaud II, MS, CPCU
Executive Director, The Risk Institute
The Ohio State University Fisher College of Business

 

No one can foresee the future, but risk managers are tasked with anticipating and using all resources at their disposal to predict what lies ahead. Risk modeling, based on data analytics, is one of the critical tools any risk practitioner can employ. However, like all things, modeling has undergone a transformation in recent years as more data is available upon which to base the models.

With risk modeling playing an increasingly crucial role in risk management, The Risk Institute at The Ohio State University focused its March Executive Education Session on Risk Modeling: The Past and the Future. Over 70 attendees were at the program from 27 companies and universities that gathered for the presentations and insightful Q&A on the topic.IMG_4839 Crop

The half-day session included a three-person panel of experts moderated by The Risk Institute Academic Director, Dr. Isil Erel. The panel was comprised of:

  • Rongsheng Gong, Vice President, Head of Risk Modeling and Analytics, Huntington National Bank
  • Al Schulman, Vice President (retired), Enterprise Risk and Capital Management, Nationwide

The session focused on the essential nature of risk modeling as a risk management tool and its role for both financial and nonfinancial firms. The speaker presentations centered on how risk models have changed as business, regulatory and economic environments have evolved over time. The impact of the recent financial crises was cited numerous times during the discussion as the speakers highlighted how previous risk models created by industry, banking and government failed to identify the magnitude of the risk impact to multiple business sectors.

The trio of presenters went in-depth for session attendees to understand the evolving, complex and at times volatile economic conditions impacting a firm’s markets and operations.IMG_4971 Crop

According to our speakers, five key lessons on effective risk modeling include:

  1. The financial crisis has led to both an increased knowledge of risk models and a decreased confidence in those same models.
  1. Since the crisis, new model considerations include counterparty risk, funding liquidity, regime-switching and government guarantees.
  1. The current system of banks, insurance companies and nations is highly and dynamically connected.
  1. Managing model risk includes multiple levels of validation for every step of its development.
  1. No matter how sophisticated the risk model, the human element is still the most important.

The session emphasized how financial firms since the recession have adapted their risk models to the changing business, economic and regulatory environments. Additionally the speakers focused on the interconnectedness of institutions (banks, insurers and government) and how that plays a vital role in managing how risk is modeled.

The session proved thought-provoking and demonstrated The Risk Institute’s unique role in uniting industry thought leaders, academics and highly respected practitioners in an ongoing dialog to advance the understanding and evolution of risk management. The Risk Institute’s conversation about risk management is open and collaborative with its relevance across all industries and its potential as a tool for competitiveness and growth.

For more information about upcoming events, our students, partners or research, visit our website: fisher.osu.edu/centers/risk.